Adam David Phillips Sells 757 Shares of CAVA Group (NYSE:CAVA) Stock

Key Points

• CAVA Group CAO Adam David Phillips sold 757 shares on June 15 at an average price of $89.43, a $67,698.51 transaction that reduced his holdings by about 10%. The filing says the sale was made to cover tax withholding tied to vested equity awards.
• CAVA’s stock has been strong, trading near $88.09 and close to its 52-week high of $98.79, with the company valued at about $10.26 billion. Even after a recent pullback in volume, the shares remain well above their 50-day and 200-day moving averages.
• Recent earnings topped expectations, with CAVA reporting $0.20 EPS versus $0.17 expected and revenue of $438.27 million, up 32.1% year over year. Analysts remain generally positive, with a consensus rating of “Moderate Buy” and an average price target of $93.37.

CAVA Group, Inc. (NYSE:CAVA - Get Free Report) CAO Adam David Phillips sold 757 shares of the company's stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $89.43, for a total transaction of $67,698.51. Following the transaction, the chief accounting officer owned 6,848 shares in the company, valued at $612,416.64. The trade was a 9.95% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Adam David Phillips also recently made the following trade(s):

• On Thursday, May 21st, Adam David Phillips sold 5,181 shares of CAVA Group stock. The stock was sold at an average price of $77.14, for a total transaction of $399,662.34.

CAVA Group Price Performance

Shares of CAVA stock traded up $0.79 during trading hours on Wednesday, reaching $88.09. 2,619,622 shares of the company were exchanged, compared to its average volume of 3,388,191. CAVA Group, Inc. has a fifty-two week low of $43.41 and a fifty-two week high of $98.79. The stock's fifty day moving average is $83.87 and its two-hundred day moving average is $73.62. The company has a market cap of $10.26 billion, a price-to-earnings ratio of 169.41, a P/E/G ratio of 6.14 and a beta of 1.70.

CAVA Group (NYSE:CAVA - Get Free Report) last announced its earnings results on Tuesday, May 19th. The company reported $0.20 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.17 by $0.03. CAVA Group had a net margin of 4.79% and a return on equity of 7.92%. The company had revenue of $438.27 million for the quarter, compared to analyst estimates of $360.89 million. During the same period in the prior year, the business earned $0.22 earnings per share. CAVA Group's quarterly revenue was up 32.1% on a year-over-year basis. On average, research analysts anticipate that CAVA Group, Inc. will post 0.55 earnings per share for the current year.

Institutional Investors Weigh In On CAVA Group

Several large investors have recently bought and sold shares of CAVA. Capital International Investors increased its stake in CAVA Group by 105.4% in the third quarter. Capital International Investors now owns 4,228,736 shares of the company's stock valued at $255,451,000 after purchasing an additional 2,169,553 shares in the last quarter. William Blair Investment Management LLC bought a new stake in CAVA Group in the third quarter valued at approximately $114,098,000. Capital Research Global Investors increased its stake in CAVA Group by 27.2% in the fourth quarter. Capital Research Global Investors now owns 8,440,040 shares of the company's stock valued at $495,344,000 after purchasing an additional 1,805,174 shares in the last quarter. Alliancebernstein L.P. increased its stake in CAVA Group by 118.3% in the third quarter. Alliancebernstein L.P. now owns 2,953,688 shares of the company's stock valued at $178,432,000 after purchasing an additional 1,600,630 shares in the last quarter. Finally, Marshall Wace LLP increased its stake in CAVA Group by 689.8% in the fourth quarter. Marshall Wace LLP now owns 1,387,774 shares of the company's stock valued at $81,448,000 after purchasing an additional 1,212,068 shares in the last quarter. Institutional investors own 73.15% of the company's stock.

CAVA Group News Roundup

Here are the key news stories impacting CAVA Group this week:

• Positive Sentiment: Jim Cramer reiterated a bullish view on CAVA, calling it “the best of the new concepts” and describing the brand as “Tasty, Clean, Fun,” which may have helped sentiment around the stock. Article Title
• Neutral Sentiment: Recent articles discussing CAVA’s expansion plan and business model highlight the company’s growth narrative, but do not appear to include a new catalyst that would materially change the outlook today. Article Title
• Negative Sentiment: Several insiders sold shares this week, including CEO Brett Schulman, CFO Tricia K. Tolivar, and other executives/directors, which can weigh on investor sentiment even though the filings say the sales were mainly for tax withholding tied to vested equity awards.
• Negative Sentiment: The largest disclosed sale came from CEO Brett Schulman, who sold 33,174 shares, and additional sales from CFO Tricia K. Tolivar, CAO Adam David Phillips, Theodoros Xenohristos, and Kelly Costanza may raise concerns about how much near-term upside management sees in the stock.

Wall Street Analyst Weigh In

CAVA has been the topic of a number of research reports. Sanford C. Bernstein reiterated an "outperform" rating and set a $95.00 target price on shares of CAVA Group in a research report on Wednesday, May 20th. Wolfe Research began coverage on shares of CAVA Group in a research note on Monday, March 9th. They set an "outperform" rating and a $93.00 price target for the company. Telsey Advisory Group boosted their price target on shares of CAVA Group from $92.00 to $95.00 and gave the stock an "outperform" rating in a research note on Wednesday, May 20th. KeyCorp boosted their price target on shares of CAVA Group from $95.00 to $105.00 and gave the stock an "overweight" rating in a research note on Monday, April 20th. Finally, UBS Group raised shares of CAVA Group from a "neutral" rating to a "buy" rating and boosted their price target for the stock from $85.00 to $90.00 in a research note on Wednesday, June 10th. One analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $93.37.

CAVA Group Company Profile

CAVA Group, Inc NYSE: CAVA is a leading fast-casual restaurant company specializing in Mediterranean-inspired cuisine. Operating under the CAVA brand, the company offers customizable bowls, pitas and salads built around a variety of proteins, grains, fresh vegetables and house-made spreads. With a focus on high-quality ingredients and made-to-order preparation, CAVA aims to deliver a casual yet elevated dining experience for dine-in, takeout and catering customers.

Founded in 2011 in the Washington, DC metro area by Ike Grigoropoulos, Dimitri Katsanis and Brett Schulman, CAVA has pursued an aggressive growth strategy that included the 2018 acquisition of Zoe's Kitchen.

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