Wall Street Zen Downgrades European Wax Center (NASDAQ:EWCZ) to Buy

Key Points

• European Wax Center (NASDAQ:EWCZ) has been downgraded by Wall Street Zen from a "strong-buy" to a "buy" rating, reflecting a shift in analysts' confidence.
• In a recent earnings report, the company exceeded expectations by posting earnings per share of $0.17 compared to a consensus estimate of $0.05, alongside a revenue of $51.43 million.
• The stock experienced a significant decline of 9.8% and currently has an average target price of $7.00, with a consensus rating of "Hold" from research analysts.

European Wax Center (NASDAQ:EWCZ - Get Free Report) was downgraded by Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued on Saturday.

Other equities research analysts have also recently issued research reports about the stock. Truist Financial increased their target price on shares of European Wax Center from $5.00 to $6.00 and gave the company a "buy" rating in a research note on Thursday, May 15th. Citigroup raised their price target on shares of European Wax Center from $4.50 to $6.00 and gave the stock a "neutral" rating in a research note on Monday, May 19th. Finally, Telsey Advisory Group restated a "market perform" rating and set a $5.00 price target on shares of European Wax Center in a research note on Thursday, May 15th. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating and three have given a buy rating to the company. Based on data from MarketBeat, European Wax Center presently has a consensus rating of "Hold" and an average target price of $7.00.

European Wax Center Stock Down 9.8%

NASDAQ EWCZ opened at $4.22 on Friday. The company has a debt-to-equity ratio of 3.79, a quick ratio of 2.18 and a current ratio of 2.71. The firm has a 50-day simple moving average of $5.41 and a 200 day simple moving average of $5.15. European Wax Center has a twelve month low of $2.72 and a twelve month high of $8.91. The stock has a market cap of $232.99 million, a PE ratio of 21.10, a PEG ratio of 0.45 and a beta of 1.49.

European Wax Center (NASDAQ:EWCZ - Get Free Report) last released its earnings results on Wednesday, May 14th. The company reported $0.17 earnings per share for the quarter, beating the consensus estimate of $0.05 by $0.12. European Wax Center had a net margin of 4.38% and a return on equity of 23.65%. The business had revenue of $51.43 million during the quarter, compared to analysts' expectations of $49.70 million. On average, research analysts forecast that European Wax Center will post 0.26 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the company. CWM LLC raised its stake in shares of European Wax Center by 1,275.9% in the second quarter. CWM LLC now owns 14,337 shares of the company's stock valued at $81,000 after acquiring an additional 13,295 shares during the last quarter. Vanguard Personalized Indexing Management LLC bought a new position in shares of European Wax Center in the second quarter valued at approximately $60,000. Janney Montgomery Scott LLC raised its stake in shares of European Wax Center by 8.2% in the second quarter. Janney Montgomery Scott LLC now owns 91,284 shares of the company's stock valued at $514,000 after acquiring an additional 6,887 shares during the last quarter. Wealth Enhancement Advisory Services LLC bought a new position in shares of European Wax Center in the second quarter valued at approximately $68,000. Finally, Voya Investment Management LLC raised its stake in shares of European Wax Center by 43.4% in the first quarter. Voya Investment Management LLC now owns 57,538 shares of the company's stock valued at $227,000 after acquiring an additional 17,417 shares during the last quarter. Institutional investors own 82.14% of the company's stock.

European Wax Center Company Profile

European Wax Center, Inc operates as the franchisor and operator of out-of-home waxing services in the United States. It offers body and facial waxing services; and pre- and post-service products, including ingrown hair serums, exfoliating gels, brow shapers, and skin treatments. The company was founded in 2004 and is headquartered in Plano, Texas.

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