First Watch Restaurant Group (NASDAQ:FWRG) Shares Down 6.1% - Should You Sell?

Key Points

• First Watch shares fell 6.1% to approximately $11.24, with trading volume down 95% from the average session. The stock remains below its 50-day and 200-day moving averages.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an $18.00 price target, despite several recent target-price reductions.
• The company’s latest quarterly revenue rose 15.2% year over year to $354.67 million, exceeding expectations, but earnings per share of $0.04 missed estimates by $0.01. First Watch has relatively low profitability, including a 1.35% net margin and 2.85% return on equity.

First Watch Restaurant Group, Inc. (NASDAQ:FWRG - Get Free Report)'s share price traded down 6.1% on Wednesday. The company traded as low as $11.40 and last traded at $11.2370. 67,212 shares changed hands during trading, a decline of 95% from the average session volume of 1,434,656 shares. The stock had previously closed at $11.97.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on FWRG. DA Davidson dropped their target price on shares of First Watch Restaurant Group from $17.00 to $15.00 and set a "buy" rating for the company in a report on Friday, October 2nd. Guggenheim lowered their price target on shares of First Watch Restaurant Group from $21.00 to $20.00 and set a "buy" rating for the company in a report on Friday, August 7th. Raymond James Financial reduced their target price on First Watch Restaurant Group from $20.00 to $18.00 and set a "strong-buy" rating on the stock in a research report on Friday, October 16th. Freedom Capital upgraded shares of First Watch Restaurant Group to a "strong-buy" rating in a report on Wednesday, July 1st. Finally, Wall Street Zen raised shares of First Watch Restaurant Group from a "strong sell" rating to a "sell" rating in a research report on Saturday, August 8th. Two research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $18.00.

First Watch Restaurant Group Price Performance

The company has a debt-to-equity ratio of 0.44, a quick ratio of 0.22 and a current ratio of 0.27. The firm has a market cap of $691.77 million, a price-to-earnings ratio of 38.65, a price-to-earnings-growth ratio of 20.27 and a beta of 1.05. The company's fifty day moving average is $11.52 and its two-hundred day moving average is $11.82.

First Watch Restaurant Group (NASDAQ:FWRG - Get Free Report) last announced its earnings results on Tuesday, August 4th. The company reported $0.04 earnings per share for the quarter, missing the consensus estimate of $0.05 by ($0.01). First Watch Restaurant Group had a net margin of 1.35% and a return on equity of 2.85%. The firm had revenue of $354.67 million during the quarter, compared to analysts' expectations of $351.57 million. During the same quarter last year, the company posted $0.03 earnings per share. First Watch Restaurant Group's revenue for the quarter was up 15.2% compared to the same quarter last year. Equities research analysts forecast that First Watch Restaurant Group, Inc. will post 0.15 EPS for the current year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the stock. State of Alaska Department of Revenue acquired a new position in shares of First Watch Restaurant Group in the 3rd quarter valued at about $32,000. Engineers Gate Manager LP raised its position in shares of First Watch Restaurant Group by 16.1% during the 2nd quarter. Engineers Gate Manager LP now owns 29,200 shares of the company's stock worth $376,000 after purchasing an additional 4,050 shares during the period. Integrated Wealth Concepts LLC acquired a new stake in shares of First Watch Restaurant Group during the 2nd quarter worth approximately $70,000. Allworth Financial LP lifted its holdings in shares of First Watch Restaurant Group by 325.4% in the 2nd quarter. Allworth Financial LP now owns 2,225 shares of the company's stock worth $29,000 after purchasing an additional 1,702 shares during the last quarter. Finally, Arizona State Retirement System lifted its holdings in shares of First Watch Restaurant Group by 9.0% in the 2nd quarter. Arizona State Retirement System now owns 16,448 shares of the company's stock worth $212,000 after purchasing an additional 1,361 shares during the last quarter. 96.11% of the stock is currently owned by institutional investors.

About First Watch Restaurant Group

First Watch Restaurant Group, Inc operates a chain of daytime restaurants specializing in breakfast, brunch and lunch. Its restaurants serve made-to-order meals prepared with fresh ingredients, including omelets, pancakes, avocado toast, salads, sandwiches and other contemporary daytime fare. The company also offers coffee, fresh juices and other beverages.

First Watch restaurants are designed around a daytime dining experience and generally operate during breakfast and lunch hours rather than offering dinner service.

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