Wall Street Zen Downgrades First Watch Restaurant Group (NASDAQ:FWRG) to Sell

Key Points

• Wall Street Zen downgraded First Watch Restaurant Group (NASDAQ:FWRG) from a "hold" rating to a "sell" rating, reflecting a negative outlook by the investment firm.
• Despite the downgrade, other brokerages like Stephens and Raymond James have recently increased their target prices for FWRG, indicating mixed analyst sentiment.
• First Watch's recent earnings report showed missed EPS estimates with $0.03 per share, falling short of the expected $0.07, although revenue increased by 19.1% year-over-year.

First Watch Restaurant Group (NASDAQ:FWRG - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued to investors on Friday.

A number of other brokerages also recently weighed in on FWRG. Stephens boosted their target price on shares of First Watch Restaurant Group from $23.00 to $24.00 and gave the stock an "overweight" rating in a research note on Wednesday, August 6th. Raymond James Financial boosted their target price on shares of First Watch Restaurant Group from $21.00 to $22.00 and gave the stock a "strong-buy" rating in a research note on Thursday, July 17th. TD Cowen boosted their target price on shares of First Watch Restaurant Group from $19.00 to $21.00 and gave the stock a "buy" rating in a research note on Tuesday, July 29th. Guggenheim dropped their target price on shares of First Watch Restaurant Group from $23.00 to $22.00 and set a "buy" rating for the company in a research note on Thursday, May 8th. Finally, Bank of America dropped their target price on shares of First Watch Restaurant Group from $23.00 to $21.00 and set a "buy" rating for the company in a research note on Friday, July 18th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, First Watch Restaurant Group currently has an average rating of "Buy" and an average target price of $21.09.

First Watch Restaurant Group Trading Down 0.4%

Shares of First Watch Restaurant Group stock opened at $18.59 on Friday. The stock has a market capitalization of $1.13 billion, a P/E ratio of 309.88, a price-to-earnings-growth ratio of 6.64 and a beta of 0.92. The company has a quick ratio of 0.23, a current ratio of 0.27 and a debt-to-equity ratio of 0.42. The company has a 50-day simple moving average of $17.72 and a 200 day simple moving average of $17.44. First Watch Restaurant Group has a 12-month low of $12.90 and a 12-month high of $22.71.

First Watch Restaurant Group (NASDAQ:FWRG - Get Free Report) last announced its earnings results on Tuesday, August 5th. The company reported $0.03 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.07 by ($0.04). The firm had revenue of $307.89 million for the quarter, compared to analyst estimates of $304.94 million. First Watch Restaurant Group had a return on equity of 0.69% and a net margin of 0.37%.The company's revenue for the quarter was up 19.1% compared to the same quarter last year. During the same quarter last year, the business earned $0.14 EPS. First Watch Restaurant Group has set its FY 2025 guidance at EPS. Research analysts expect that First Watch Restaurant Group will post 0.32 earnings per share for the current fiscal year.

Insider Activity at First Watch Restaurant Group

In other news, major shareholder International L.P. Advent sold 5,000,000 shares of First Watch Restaurant Group stock in a transaction that occurred on Friday, August 8th. The shares were sold at an average price of $17.70, for a total transaction of $88,500,000.00. Following the completion of the sale, the insider owned 9,689,784 shares in the company, valued at $171,509,176.80. The trade was a 34.04% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 6.00% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On First Watch Restaurant Group

Institutional investors have recently modified their holdings of the business. Sumitomo Mitsui Trust Group Inc. acquired a new stake in shares of First Watch Restaurant Group during the 1st quarter worth approximately $259,000. SG Americas Securities LLC grew its position in shares of First Watch Restaurant Group by 272.0% during the 1st quarter. SG Americas Securities LLC now owns 56,466 shares of the company's stock worth $940,000 after buying an additional 41,289 shares during the period. Bank of New York Mellon Corp grew its position in shares of First Watch Restaurant Group by 203.6% during the 1st quarter. Bank of New York Mellon Corp now owns 238,661 shares of the company's stock worth $3,974,000 after buying an additional 160,040 shares during the period. Stephens Investment Management Group LLC grew its position in shares of First Watch Restaurant Group by 2.2% during the 1st quarter. Stephens Investment Management Group LLC now owns 708,663 shares of the company's stock worth $11,799,000 after buying an additional 15,304 shares during the period. Finally, Zurcher Kantonalbank Zurich Cantonalbank grew its holdings in First Watch Restaurant Group by 85.2% during the first quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 9,807 shares of the company's stock valued at $163,000 after purchasing an additional 4,512 shares during the period. Institutional investors and hedge funds own 96.11% of the company's stock.

First Watch Restaurant Group Company Profile

First Watch Restaurant Group, Inc, through its subsidiaries, operates and franchises restaurants under the First Watch trade name in the United States. The company was formerly known as AI Fresh Super Holdco, Inc and changed its name to First Watch Restaurant Group, Inc in December 2019. First Watch Restaurant Group, Inc was founded in 1983 and is based in Bradenton, Florida.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.