First Watch Restaurant Group (NASDAQ:FWRG) Trading Up 7.3% - Should You Buy?

Key Points

• First Watch Restaurant Group shares rose 7.3% on Wednesday, trading as high as $11.01 on lighter-than-normal volume.
• Analysts remain generally positive, with a consensus rating of “Moderate Buy” and an average target price of $19.27, even though several firms recently trimmed their price targets.
• The company’s latest quarterly results showed revenue growth of 17.3% year over year, but earnings missed expectations, coming in at -$0.04 per share versus the -$0.02 estimate.

Shares of First Watch Restaurant Group, Inc. (NASDAQ:FWRG - Get Free Report) were up 7.3% during trading on Wednesday . The company traded as high as $11.01 and last traded at $11.01. Approximately 298,569 shares changed hands during trading, a decline of 81% from the average daily volume of 1,600,757 shares. The stock had previously closed at $10.26.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on FWRG shares. Guggenheim cut their price target on First Watch Restaurant Group from $23.00 to $21.00 and set a "buy" rating for the company in a report on Wednesday, February 25th. Barclays lowered their price objective on First Watch Restaurant Group from $19.00 to $17.00 and set an "overweight" rating on the stock in a research report on Wednesday, February 25th. TD Cowen restated a "buy" rating and set a $17.00 price objective on shares of First Watch Restaurant Group in a research report on Wednesday, June 3rd. Zacks Research upgraded First Watch Restaurant Group from a "strong sell" rating to a "hold" rating in a research report on Tuesday, February 10th. Finally, Stephens restated an "overweight" rating and set a $21.00 price objective on shares of First Watch Restaurant Group in a research report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $19.27.

First Watch Restaurant Group Stock Up 6.2%

The firm's 50-day moving average is $11.55 and its two-hundred day moving average is $14.00. The stock has a market cap of $671.99 million, a P/E ratio of 38.93, a PEG ratio of 5.35 and a beta of 1.06. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.25 and a current ratio of 0.29.

First Watch Restaurant Group (NASDAQ:FWRG - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The company reported ($0.04) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.02) by ($0.02). The firm had revenue of $330.96 million during the quarter, compared to the consensus estimate of $329.35 million. First Watch Restaurant Group had a net margin of 1.38% and a return on equity of 2.85%. First Watch Restaurant Group's revenue was up 17.3% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.01) EPS. On average, equities research analysts anticipate that First Watch Restaurant Group, Inc. will post 0.2 earnings per share for the current year.

Insider Buying and Selling

In other First Watch Restaurant Group news, CFO H Melville Hope III sold 3,878 shares of the firm's stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $12.52, for a total transaction of $48,552.56. Following the transaction, the chief financial officer owned 111,787 shares in the company, valued at approximately $1,399,573.24. This trade represents a 3.35% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Christopher Anthony Tomasso sold 25,062 shares of the firm's stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $12.52, for a total value of $313,776.24. Following the transaction, the chief executive officer owned 957,315 shares in the company, valued at approximately $11,985,583.80. This trade represents a 2.55% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 38,255 shares of company stock worth $478,953 in the last ninety days. 6.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On First Watch Restaurant Group

Several institutional investors have recently modified their holdings of the business. Glenmede Trust Co. NA bought a new position in shares of First Watch Restaurant Group during the 1st quarter valued at about $263,000. Access Investment Management LLC bought a new position in shares of First Watch Restaurant Group during the 1st quarter valued at about $1,689,000. Bank of America Corp DE lifted its holdings in shares of First Watch Restaurant Group by 76.7% during the 1st quarter. Bank of America Corp DE now owns 1,052,426 shares of the company's stock valued at $11,029,000 after purchasing an additional 456,976 shares in the last quarter. California State Teachers Retirement System lifted its stake in First Watch Restaurant Group by 67.9% in the 1st quarter. California State Teachers Retirement System now owns 77,373 shares of the company's stock valued at $811,000 after acquiring an additional 31,281 shares in the last quarter. Finally, Royal Bank of Canada lifted its stake in First Watch Restaurant Group by 35.2% in the 1st quarter. Royal Bank of Canada now owns 48,381 shares of the company's stock valued at $506,000 after acquiring an additional 12,598 shares in the last quarter. Institutional investors own 96.11% of the company's stock.

First Watch Restaurant Group Company Profile

First Watch Restaurant Group, Inc NASDAQ: FWRG operates a specialty daytime dining concept focused on breakfast, brunch and lunch. The company's casual, full-service cafés emphasize fresh ingredients, made-to-order entrées and a seasonally driven menu that ranges from omelets and Benedicts to salads, skillets and afternoon sandwiches. First Watch positions itself as a daytime-only destination, with most locations opening early morning and closing by mid-afternoon.

Founded in 1983 by Ken Pendery and John Sullivan in Pacific Grove, California, First Watch began as a single café and gradually expanded through company-owned and select franchised locations.

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