Shares of First Watch Restaurant Group, Inc. (NASDAQ:FWRG) rose by 6.4% during mid-day trading on Tuesday, reaching a peak of $17.61 before closing at $17.92. The trading volume for the day was 101,390 shares, significantly lower than the average of 955,306 shares. This uptick follows a previous closing price of $16.84.
Analysts have responded positively to the company’s stock, as reflected in recent reports. Weiss Ratings maintained a “hold (c-)” rating on First Watch shares, while Benchmark increased its price target from $22.00 to $24.00 and assigned a “buy” rating on August 6. Similarly, Stephens raised its target from $23.00 to $24.00, categorizing the stock as “overweight.” In contrast, Zacks Research upgraded First Watch from a “strong sell” to a “hold” rating on October 24. Wall Street Zen also shifted its stance, moving from a “sell” to a “hold” rating on November 8. Currently, one investment analyst rates the stock as a Strong Buy, eight analysts give it a Buy rating, and two have issued Hold ratings. According to MarketBeat.com, the average target price stands at $21.09.
Quarterly Earnings Report and Future Projections
On November 4, First Watch announced its quarterly earnings, reporting $0.05 earnings per share (EPS), which fell short of the consensus estimate of $0.08 by $0.03. Revenue for the quarter reached $316.02 million, surpassing the expected $308.31 million. The company’s return on equity was 0.83%, with a net margin of 0.42%. For fiscal year 2025, analysts predict an EPS of $0.32 for First Watch.
In insider trading news, major shareholder Advent International L.P. sold 4,400,000 shares on September 8 at an average price of $17.67, totaling approximately $77.7 million. Following this transaction, Advent retains 5,289,784 shares, valued at about $93.5 million, marking a 45.41% reduction in their stake. This transaction was disclosed in a filing with the SEC.
Institutional Investments and Shareholder Dynamics
Several institutional investors have recently adjusted their positions in First Watch. PNC Financial Services Group Inc. increased its stake by 4.4% in the first quarter, now owning 16,943 shares valued at $282,000 after acquiring an additional 708 shares. Meanwhile, Legal & General Group Plc raised its holdings by 1.6% in the second quarter, now owning 45,531 shares worth $730,000 after purchasing an additional 724 shares.
Other notable movements include First Horizon Advisors Inc., which grew its position by 207.6% during the same period, owning 1,950 shares valued at $31,000 after acquiring 1,316 shares. Police & Firemen’s Retirement System of New Jersey boosted its position by 17.3%, now holding 9,108 shares worth $146,000 after an additional purchase of 1,341 shares. BNP Paribas Financial Markets also increased its holdings by 61.9%, owning 4,375 shares valued at $70,000 after acquiring an additional 1,673 shares.
Institutional investors and hedge funds collectively own approximately 96.11% of First Watch’s stock, indicating strong support from large financial entities.
Founded in 1983 and based in Bradenton, Florida, First Watch Restaurant Group operates and franchises restaurants under the First Watch brand. The company was previously known as AI Fresh Super Holdco, Inc. and rebranded in December 2019. The latest movements in share prices, analyst ratings, and insider trading reflect the dynamic nature of First Watch’s position in the market as it navigates growth and investor sentiment.
