What Happened?
Shares of breakfast restaurant chain First Watch Restaurant Group (NASDAQ:FWRG) fell 5% in the pre-market session after continued negative momentum as a filing showed that investment firm Brown Advisory Inc. sold its position in the company.
According to a report on July 10, the investment firm sold 32,341 shares of the restaurant group. While the size of this single transaction is modest, it comes on the heels of a much larger sale by a key insider. In early June, major shareholder Advent International sold 4.5 million shares, a transaction totaling over $66 million.
This pattern of selling by both institutional investors and major insiders can create downward pressure on a stock, as it may lead other investors to question the company's near-term growth prospects.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy First Watch? Access our full analysis report here, it’s free.
What Is The Market Telling Us
First Watch’s shares are very volatile and have had 28 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
First Watch is down 6.6% since the beginning of the year, and at $17.55 per share, it is trading 21.1% below its 52-week high of $22.23 from February 2025. Investors who bought $1,000 worth of First Watch’s shares at the IPO in September 2021 would now be looking at an investment worth $793.04.
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