First Watch Restaurant Group Stock Upgrade by Raymond James

First Watch Restaurant Group (NASDAQ:FWRG) received an encouraging boost from Raymond James, which recently raised its target price for the company's stock from $22.00 to $25.00. This adjustment, highlighted in a research report published on Friday, places a "strong-buy" rating on First Watch Restaurant Group, suggesting a potential increase of 21.60% based on its current market price.

Other research firms have also expressed positive sentiments about First Watch Restaurant Group. Stephens increased its target price from $20.00 to $25.00, maintaining an "overweight" rating. Similarly, Barclays revised its target price for the company’s shares from $18.00 to $22.00, also assigning an "overweight" rating. On July 17th, Bank of America reduced its price target from $29.00 to $24.00 while keeping a "buy" rating. Meanwhile, TD Cowen reaffirmed its "hold" rating with a price objective set at $18.00. Benchmark joined the ranks of optimistic analysts by reiterating a "buy" rating with a $23.00 price target as of October 16th. Analysis from MarketBeat.com indicates that out of the research available, there are two hold ratings, six buy ratings, and one strong buy rating, resulting in a overall consensus rating of "Moderate Buy" and an average target price of $23.00.

Stock Performance Overview

On trading day Friday, shares of FWRG experienced a slight decrease, falling by $0.27 to a value of $20.56. In total, 516,107 shares were traded, which is less than the average volume of 580,334 shares. The company maintains a debt-to-equity ratio of 0.33, a current ratio of 0.57, and a quick ratio of 0.52. As for stock prices, its 50-day moving average stands at $15.82, while the two-hundred day moving average is $17.42. Currently, First Watch Restaurant Group has a market capitalization of $1.24 billion, a price-to-earnings (P/E) ratio of 52.72, and a price-to-earnings-growth (PEG) ratio of 4.71. The stock has navigated a one-year low of $12.90 and a high of $25.98.

First Watch Restaurant Group released its latest quarterly earnings results on November 7th, reporting earnings per share (EPS) of $0.03, slightly below analysts' consensus expectation of $0.05 per share. The company noted a net margin of 2.51% and a return on equity of 4.24%. Revenue for the quarter reached $251.61 million, coming in lower than the anticipated $256.17 million. When compared year-over-year, the revenue marked a 14.8% increase. Analysts expect the company to report an EPS of 0.33 for the current fiscal year.

Investor Activity

Large institutional investors have been actively adjusting their stakes in First Watch Restaurant Group. Rocky Mountain Advisers LLC significantly increased its holdings by 180.1% in the third quarter, owning 6,610 shares valued at $103,000 after acquiring an additional 4,250 shares. SG Americas Securities LLC took a new position in the third quarter valued at approximately $119,000. Quent Capital LLC raised its ownership by 28.6% during the second quarter, now holding 9,000 shares worth $158,000 after buying 2,000 additional shares. Versor Investments LP also established a new stake in the third quarter amounting to $201,000, and Janus Henderson Group PLC purchased a new position worth about $226,000 in the first quarter. Notably, hedge funds and other institutional investors collectively own around 96.11% of First Watch Restaurant Group's stock, reflecting significant institutional confidence.

Company Overview

First Watch Restaurant Group, Inc., through its subsidiaries, primarily operates and franchises restaurants under the First Watch name across the United States. Originally known as AI Fresh Super Holdco, Inc., the company rebranded to its current name in December 2019. Founded in 1983, First Watch is headquartered in Bradenton, Florida.

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