European Wax Center (NASDAQ:EWCZ) Rating Lowered to "Buy" at Wall Street Zen

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.

Wall Street Zen lowered shares of European Wax Center (NASDAQ:EWCZ - Free Report) from a strong-buy rating to a buy rating in a report issued on Saturday.

Several other research firms also recently issued reports on EWCZ. Telsey Advisory Group reaffirmed a "market perform" rating and set a $5.00 price objective on shares of European Wax Center in a report on Thursday, May 15th. Truist Financial raised their price objective on shares of European Wax Center from $5.00 to $6.00 and gave the stock a "buy" rating in a research report on Thursday, May 15th. Finally, Citigroup raised their target price on shares of European Wax Center from $4.50 to $6.00 and gave the stock a "neutral" rating in a report on Monday, May 19th. One 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. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $7.00.

European Wax Center Stock Performance

Shares of EWCZ stock traded down $0.03 during midday trading on Friday, hitting $4.16. The company had a trading volume of 167,382 shares, compared to its average volume of 656,895. The company has a debt-to-equity ratio of 3.79, a current ratio of 2.71 and a quick ratio of 2.18. European Wax Center has a 52-week low of $2.72 and a 52-week high of $8.91. The stock has a market cap of $229.40 million, a price-to-earnings ratio of 20.88, a PEG ratio of 0.42 and a beta of 1.48. The company's 50 day simple moving average is $5.37 and its 200 day simple moving average is $5.11.

European Wax Center (NASDAQ:EWCZ - Get Free Report) last posted its quarterly earnings data on Wednesday, May 14th. The company reported $0.17 EPS for the quarter, topping analysts' consensus estimates of $0.05 by $0.12. European Wax Center had a return on equity of 23.65% and a net margin of 4.38%. The company had revenue of $51.43 million for the quarter, compared to the consensus estimate of $49.70 million. Research analysts anticipate that European Wax Center will post 0.26 earnings per share for the current fiscal year.

Institutional Investors Weigh In On European Wax Center

A number of large investors have recently added to or reduced their stakes in EWCZ. Vanguard Personalized Indexing Management LLC purchased a new position in European Wax Center during the second quarter valued at $60,000. Wealth Enhancement Advisory Services LLC bought a new stake in European Wax Center during the 2nd quarter valued at about $68,000. CWM LLC raised its holdings in shares of European Wax Center by 1,275.9% in the 2nd quarter. CWM LLC now owns 14,337 shares of the company's stock valued at $81,000 after purchasing an additional 13,295 shares in the last quarter. Two Sigma Securities LLC bought a new stake in shares of European Wax Center in the 4th quarter valued at about $83,000. Finally, Price T Rowe Associates Inc. MD grew its position in shares of European Wax Center by 14.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 12,452 shares of the company's stock worth $84,000 after buying an additional 1,582 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.