CAVA Group (NYSE:CAVA) Given New $66.00 Price Target at Citigroup

Key Points

• Citigroup cut CAVA Group’s price target from $79 to $66 while maintaining a “neutral” rating, implying approximately 20.9% upside from the prior close.
• Despite several recent target reductions, analysts collectively maintain a “Moderate Buy” consensus, with an average price target of $87.92.
• CAVA reported quarterly revenue of $368.44 million and earnings of $0.19 per share, exceeding estimates, while its board authorized a $100 million share repurchase plan.

CAVA Group (NYSE:CAVA - Get Free Report) had its price target decreased by equities research analysts at Citigroup from $79.00 to $66.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The firm currently has a "neutral" rating on the stock. Citigroup's price target indicates a potential upside of 20.92% from the stock's previous close.

Several other equities analysts also recently weighed in on CAVA. Weiss Ratings raised CAVA Group from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, October 8th. Guggenheim lowered their price target on CAVA Group from $100.00 to $95.00 and set a "buy" rating for the company in a research report on Thursday, August 13th. JPMorgan Chase & Co. dropped their price target on shares of CAVA Group from $85.00 to $80.00 and set an "overweight" rating for the company in a research note on Friday, September 18th. Mizuho dropped their price target on shares of CAVA Group from $85.00 to $70.00 and set a "neutral" rating for the company in a research note on Wednesday, August 12th. Finally, DA Davidson reduced their price objective on shares of CAVA Group from $84.00 to $75.00 and set a "neutral" rating on the stock in a research report on Thursday, August 13th. One analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and ten have given a Hold rating to the company's stock. Based on data from MarketBeat, CAVA Group currently has a consensus rating of "Moderate Buy" and an average price target of $87.92.

CAVA Group Stock Performance

Shares of NYSE:CAVA traded down $0.42 on Thursday, reaching $54.58. The company's stock had a trading volume of 2,631,745 shares, compared to its average volume of 3,357,364. CAVA Group has a 52-week low of $43.41 and a 52-week high of $98.79. The company has a 50-day simple moving average of $58.79 and a 200 day simple moving average of $71.35. The company has a market cap of $6.38 billion, a P/E ratio of 99.24, a PEG ratio of 4.45 and a beta of 1.80.

CAVA Group (NYSE:CAVA - Get Free Report) last released its quarterly earnings results on Tuesday, August 11th. The company reported $0.19 EPS for the quarter, topping the consensus estimate of $0.18 by $0.01. The company had revenue of $368.44 million during the quarter, compared to analyst estimates of $360.09 million. CAVA Group had a return on equity of 8.28% and a net margin of 4.82%. The firm's revenue was up 31.3% on a year-over-year basis. During the same quarter last year, the business posted $0.16 earnings per share. On average, equities research analysts forecast that CAVA Group will post 0.55 EPS for the current fiscal year.

CAVA Group announced that its Board of Directors has authorized a share repurchase plan on Friday, September 18th that authorizes the company to repurchase $100.00 million in outstanding shares. This buyback authorization authorizes the company to purchase up to 1.7% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's leadership believes its shares are undervalued.

Insider Buying and Selling

In related news, insider Douglas Thompson bought 6,500 shares of the company's stock in a transaction on Monday, August 31st. The shares were acquired at an average cost of $66.52 per share, for a total transaction of $432,380.00. Following the purchase, the insider directly owned 19,371 shares of the company's stock, valued at approximately $1,288,558.92. The trade was a 50.50% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 6.70% of the stock is owned by corporate insiders.

Institutional Trading of CAVA Group

Several institutional investors and hedge funds have recently modified their holdings of the stock. Ancora Advisors LLC bought a new stake in CAVA Group during the 2nd quarter valued at $27,000. FNY Investment Advisers LLC purchased a new stake in shares of CAVA Group in the 2nd quarter worth $31,000. Philadelphia Investment Partners LLC bought a new position in shares of CAVA Group during the 2nd quarter worth $33,000. CX Institutional bought a new position in shares of CAVA Group during the 3rd quarter worth $26,000. Finally, Scarborough Advisors LLC bought a new position in shares of CAVA Group during the 1st quarter worth $54,000. Institutional investors own 73.15% of the company's stock.

About CAVA Group

CAVA Group, Inc operates CAVA, a fast-casual restaurant brand serving Mediterranean-inspired food in the United States. Its menu includes customizable bowls and pitas, salads, dips, spreads, grilled proteins, and other Mediterranean dishes, with options designed to accommodate a range of dietary preferences.

The company's restaurants generally use an assembly-line format that allows customers to build meals from a selection of ingredients and sauces. CAVA also offers its branded dips, spreads, and other products through select grocery and retail channels, extending the brand beyond its restaurant locations.

CAVA was founded in 2010 by Dimitri Moshovitis, Ike Grigoropoulos, and Ted Xenohristos.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.