On September 2, 2023, it was reported that American Century Companies Inc. had significantly increased its position in European Wax Center, Inc. (NASDAQ:EWCZ) during the first quarter of the year. According to their 13F filing with the Securities and Exchange Commission (SEC), American Century Companies Inc. added 330,811 shares to their existing holdings, resulting in a 45.8% increase. As a result, they now own a total of 1,053,174 shares of European Wax Center.
The value of American Century Companies Inc.’s investment in European Wax Center is estimated to be worth $19,979,000 at the end of the first quarter. This makes up approximately 1.68% of European Wax Center’s overall worth.
European Wax Center is primarily engaged in operating as a franchisor and provider of out-of-home waxing services in the United States market. The company specializes in offering both body and facial waxing services to its customers. In addition to these services, European Wax Center also provides a range of pre- and post-service products such as ingrown hair serums, exfoliating gels, brow shapers, and skin treatments.
Founded in 2004 and headquartered in Plano, Texas, European Wax Center has established itself as a prominent player in the waxing industry by providing high-quality and convenient services to its customers. Through its franchise model, it has successfully expanded its reach across various locations within the United States.
The increased investment by American Century Companies Inc. clearly demonstrates their confidence in the future prospects of European Wax Center. With an expanded ownership stake and continued growth potential for European Wax Center based on its successful business model and product offerings, investors may view this development as an opportunity for potential returns.
As always with any investment decision or analysis related to specific companies or stocks like European Wax Center, thorough research is recommended before making any investment decisions. It is important for investors to understand the underlying fundamentals and market conditions that may impact the performance of a company and its stock. Seeking guidance from qualified financial advisors or conducting one’s own research can help make informed investment choices.
In conclusion, American Century Companies Inc.’s increased position in European Wax Center highlights their strong belief in the company’s growth prospects. As European Wax Center continues to offer its wide range of waxing services and expand its franchise across the United States, investors may keep an eye on this company for potential investment opportunities moving forward.
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European Wax Center, Inc. Sees Increased Attention from Hedge Funds and Analysts
European Wax Center, Inc. has been attracting attention from various hedge funds and institutional investors as they modify their holdings in the company. Charles Schwab Investment Management Inc., for instance, recently increased its holdings in European Wax Center by 1.3% during the fourth quarter, acquiring an additional 847 shares worth $812,000. Tower Research Capital LLC TRC also raised its holdings in the company by 43.6% during the third quarter, purchasing an extra 889 shares valued at $54,000.
Similarly, California State Teachers Retirement System added to its holdings in European Wax Center by 3.5% during the third quarter, buying an additional 1,082 shares worth $585,000. Swiss National Bank also increased its stake in the company by 2.0% during the fourth quarter, acquiring an extra 1,200 shares valued at $772,000. Royal Bank of Canada boosted its holdings significantly by 78.3% during the third quarter when they bought an additional 1,268 shares worth $53,000.
Collectively, institutional investors and hedge funds now own approximately 74.97% of European Wax Center’s stock.
Analysts have also chimed in on EWCZ’s prospects. Morgan Stanley raised their price target for European Wax Center stock from $17.00 to $18.00 and gave it an “equal weight” rating in a research note on August 22nd. Telsey Advisory Group was even more optimistic, increasing their price target from $22.00 to $23.00 and giving the stock an “outperform” rating on August 10th.
Overall, Bloomberg.com reports that analysts give European Wax Center a consensus rating of “Hold” with a consensus price target of $21.33.
On Friday, September 2nd, EWCZ opened at $17.36 per share on NASDAQ – relatively close to its fifty-two week low of $12.02, but still significantly lower than its fifty-two week high of $21.70.
Key financial indicators for European Wax Center reveal a debt-to-equity ratio of 2.72, quick ratio of 2.82, and a current ratio of 3.67. The company currently holds a market capitalization of $1.09 billion with a price-to-earnings (P/E) ratio of 108.50 and a price/earnings-to-growth (P/E/G) ratio of 21.81, indicating relatively high valuations in comparison to industry peers. Its beta stands at 1.53.
In terms of recent financial performance, European Wax Center posted earnings per share (EPS) of $0.05 for the most recent quarter reported on August 9th – meeting analysts’ consensus estimates. The company demonstrated a return on equity (ROE) of 40.36% and a net margin of 3.64%. Quarterly revenue totaled $59.09 million which slightly exceeded the consensus estimate by approximately $820,000.
Equities analysts predict that European Wax Center will achieve an EPS forecasted at $0.13 for the current year.
As investors evaluate their positions in European Wax Center and analysts express varying opinions on the stock’s outlook, it remains to be seen how these factors will impact the company’s future performance and overall market value going forward.