First Watch Restaurant Group (NASDAQ:FWRG) Trading Down 5.4% - Here's Why

Key Points

• First Watch shares fell 5.4% to about $11.62, with trading volume roughly 93% below the stock’s average daily volume.
• Analyst sentiment remains positive overall: the stock has a “Moderate Buy” consensus rating and an average price target of $18.56, despite several recent target-price cuts.
• The company’s latest quarterly revenue rose 15.2% year over year to $354.67 million, but EPS of $0.04 missed estimates by $0.01. Institutional investors own a substantial 96.11% of the shares.

First Watch Restaurant Group, Inc. (NASDAQ:FWRG - Get Free Report) shares were down 5.4% during trading on Wednesday . The stock traded as low as $11.60 and last traded at $11.6220. Approximately 95,725 shares changed hands during trading, a decline of 93% from the average daily volume of 1,424,297 shares. The stock had previously closed at $12.29.

Analyst Upgrades and Downgrades

FWRG has been the topic of a number of recent analyst reports. Wall Street Zen upgraded First Watch Restaurant Group from a "strong sell" rating to a "sell" rating in a research report on Saturday, August 8th. TD Cowen reaffirmed a "buy" rating and set a $17.00 target price on shares of First Watch Restaurant Group in a research note on Wednesday, June 3rd. Citigroup dropped their price target on shares of First Watch Restaurant Group from $21.00 to $20.00 and set a "buy" rating on the stock in a research note on Wednesday, August 5th. Guggenheim reduced their price objective on shares of First Watch Restaurant Group from $21.00 to $20.00 and set a "buy" rating for the company in a research report on Friday, August 7th. Finally, Weiss Ratings raised First Watch Restaurant Group from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday, August 28th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, First Watch Restaurant Group has a consensus rating of "Moderate Buy" and a consensus target price of $18.56.

First Watch Restaurant Group Stock Performance

The company has a quick ratio of 0.22, a current ratio of 0.27 and a debt-to-equity ratio of 0.44. The firm has a 50-day moving average price of $12.53 and a 200 day moving average price of $12.13. The firm has a market capitalization of $710.31 million, a PE ratio of 39.73, a price-to-earnings-growth ratio of 20.08 and a beta of 1.03.

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

Institutional Investors Weigh In On First Watch Restaurant Group

Several large investors have recently added to or reduced their stakes in the business. Royal Bank of Canada lifted its holdings in First Watch Restaurant Group by 67.3% during the 1st quarter. Royal Bank of Canada now owns 54,267 shares of the company's stock worth $903,000 after buying an additional 21,830 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of First Watch Restaurant Group by 31.8% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 22,766 shares of the company's stock valued at $379,000 after acquiring an additional 5,497 shares in the last quarter. Legal & General Group Plc boosted its holdings in First Watch Restaurant Group by 1.6% in the second quarter. Legal & General Group Plc now owns 45,531 shares of the company's stock valued at $730,000 after purchasing an additional 724 shares during the period. Rhumbline Advisers grew its stake in First Watch Restaurant Group by 45.8% during the 2nd quarter. Rhumbline Advisers now owns 73,882 shares of the company's stock worth $1,185,000 after purchasing an additional 23,205 shares in the last quarter. Finally, American Century Companies Inc. grew its stake in First Watch Restaurant Group by 43.4% during the 2nd quarter. American Century Companies Inc. now owns 72,166 shares of the company's stock worth $1,158,000 after purchasing an additional 21,846 shares in the last quarter. 96.11% of the stock is owned by hedge funds and other institutional investors.

About First Watch Restaurant Group

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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