Shares of First Watch Restaurant Group, Inc. (NASDAQ: FWRG) rose 6.4% during mid-day trading on Tuesday, reaching a high of $17.61 before closing at $17.92. This movement comes as the company experiences a decline in trading volume, with only 101,390 shares exchanged, significantly lower than the average session volume of 955,306 shares. The stock had previously closed at $16.84.
Analyst Upgrades Drive Stock Performance
Recent analyst reports have had a notable impact on First Watch’s stock performance. Weiss Ratings reaffirmed a “hold (C-)” rating on the company’s shares. In contrast, Benchmark raised its price target from $22.00 to $24.00, assigning a “buy” rating on August 6. Similarly, Stephens increased its price target from $23.00 to $24.00, also categorizing the stock as “overweight.”
Moreover, Zacks Research upgraded First Watch from a “strong sell” to a “hold” rating on October 24. Wall Street Zen followed suit, moving from a “sell” to a “hold” rating on November 8. Currently, one analyst rates the stock as a “Strong Buy,” eight as “Buy,” and two as “Hold.” According to MarketBeat.com, First Watch holds a consensus rating of “Moderate Buy” with an average target price of $21.09.
Quarterly Earnings Report and Future Guidance
On November 4, First Watch announced its quarterly earnings, reporting earnings per share (EPS) of $0.05, falling short of the consensus estimate of $0.08 by $0.03. The company generated revenues of $316.02 million, slightly exceeding analyst expectations of $308.31 million. First Watch reported a return on equity of 0.83% and a net margin of 0.42%. For fiscal year 2025, the company has projected an EPS of $0.32.
Insider trading activity has also been significant. On September 8, major shareholder Advent International L.P. sold 4,400,000 shares at an average price of $17.67, resulting in a total transaction of approximately $77.75 million. Following this sale, Advent retained 5,289,784 shares, valued at around $93.47 million, reflecting a 45.41% decrease in their stake. Insider ownership now stands at 6.00% of the company’s stock.
Institutional Investor Interest
Institutional interest in First Watch has also been on the rise. Numerous hedge funds have adjusted their positions in the company. PNC Financial Services Group Inc. increased its stake by 4.4%, now holding 16,943 shares valued at $282,000. Legal & General Group Plc raised its holdings by 1.6% in the second quarter, totaling 45,531 shares valued at $730,000.
Additionally, First Horizon Advisors Inc. grew its position by 207.6%, now owning 1,950 shares valued at $31,000. Police & Firemen’s Retirement System of New Jersey has also increased its holding by 17.3%, owning 9,108 shares valued at $146,000. Institutional and hedge funds collectively own 96.11% of the company’s stock.
Founded in 1983 and based in Bradenton, Florida, First Watch Restaurant Group operates and franchises restaurants across the United States. The company was previously known as AI Fresh Super Holdco, Inc. before rebranding in December 2019.
As First Watch continues to navigate the evolving market landscape, its performance will be closely watched by analysts and investors alike.
