First Watch Restaurant Group, Inc. (NASDAQ:FWRG) experienced a notable increase in its stock price, rising by 6.4% during mid-day trading on Tuesday. The shares reached a high of $17.61 before closing at $17.92. This trading session saw 101,390 shares exchanged, significantly lower than the average volume of 955,306 shares, reflecting a decline of 89%.
Analysts have recently provided updated ratings and price targets for First Watch, contributing to the stock’s upward movement. On Tuesday, Weiss Ratings reaffirmed a “hold (C-)” rating for the company. In contrast, Benchmark raised its price target from $22.00 to $24.00, assigning a “buy” rating. Similarly, Stephens increased its target from $23.00 to $24.00 and rated the stock as “overweight.” On October 24, Zacks Research upgraded First Watch from a “strong sell” to a “hold.” Furthermore, Wall Street Zen also upgraded its rating from “sell” to “hold” on November 8.
Currently, one investment analyst rates the stock as a Strong Buy, while eight others have issued Buy ratings, with two analysts assigning a Hold rating. According to data from MarketBeat.com, First Watch holds a consensus rating of “Moderate Buy” with an average target price of $21.09.
Quarterly Earnings and Future Guidance
The company recently announced its quarterly earnings on November 4, revealing earnings per share (EPS) of $0.05, which fell short of the consensus estimate of $0.08 by $0.03. Despite this, First Watch reported revenues of $316.02 million for the quarter, surpassing analysts’ expectations of $308.31 million. The firm recorded a return on equity of 0.83% and a net margin of 0.42%. For fiscal year 2025, analysts predict that First Watch will achieve an EPS of $0.32.
Insider Activity and Institutional Holdings
In related news, major shareholder International L.P. Advent sold 4,400,000 shares of First Watch stock on September 8 at an average price of $17.67, totaling approximately $77.7 million. Following this transaction, Advent retained 5,289,784 shares, valued at about $93.47 million, which reflects a 45.41% reduction in their stake in the company. Corporate insiders currently own 6.00% of First Watch’s stock.
Institutional investors have also made significant adjustments to their positions in First Watch. PNC Financial Services Group Inc. increased its stake by 4.4% in the first quarter, now holding 16,943 shares valued at $282,000. Legal & General Group Plc raised its holdings by 1.6% in the second quarter, owning 45,531 shares worth $730,000. Additionally, First Horizon Advisors Inc. expanded its position by 207.6%, now holding 1,950 shares valued at $31,000.
Overall, institutional investors and hedge funds collectively own 96.11% of First Watch Restaurant Group’s stock, highlighting strong institutional confidence in the company’s future prospects.
First Watch Restaurant Group, founded in 1983 and based in Bradenton, Florida, operates and franchises restaurants under the First Watch name across the United States. The company transitioned from its former name, AI Fresh Super Holdco, Inc., in December 2019.
