CAVA Group (NYSE:CAVA) Price Target Cut to $80.00 by Analysts at KeyCorp

Key Points

• KeyCorp lowered CAVA Group’s price target from $95 to $80 while maintaining an “overweight” rating, implying approximately 46.6% upside from the stock’s $54.58 price.
• Analyst sentiment remains positive overall, with CAVA carrying a “Moderate Buy” consensus rating and an average price target of $87.35.
• CAVA exceeded quarterly expectations with $0.19 in EPS and $368.44 million in revenue, up 31.3% year over year; the company also authorized a $100 million stock buyback.

CAVA Group (NYSE:CAVA - Get Free Report) had its price target dropped by equities researchers at KeyCorp from $95.00 to $80.00 in a research note issued on Friday, Benzinga reports. The brokerage currently has an "overweight" rating on the stock. KeyCorp's price target points to a potential upside of 46.57% from the stock's current price.

A number of other analysts also recently issued reports on CAVA. Wolfe Research lifted their price target on CAVA Group from $79.00 to $82.00 and gave the company an "outperform" rating in a research report on Wednesday, August 12th. Freedom Capital raised shares of CAVA Group to a "hold" rating in a research note on Wednesday, July 1st. Northcoast Research upgraded shares of CAVA Group from a "sell" rating to a "neutral" rating in a research report on Thursday, August 13th. Morgan Stanley raised shares of CAVA Group from an "equal weight" rating to an "overweight" rating and boosted their price target for the stock from $86.00 to $90.00 in a research note on Wednesday, July 15th. Finally, Seaport Research Partners initiated coverage on shares of CAVA Group in a research note on Wednesday, September 16th. They issued a "buy" rating and a $58.00 price target for the company. 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 stock. According to MarketBeat.com, CAVA Group presently has an average rating of "Moderate Buy" and an average price target of $87.35.

CAVA Group Stock Performance

CAVA Group stock opened at $54.58 on Friday. The stock has a market cap of $6.38 billion, a P/E ratio of 99.24, a PEG ratio of 4.26 and a beta of 1.80. CAVA Group has a fifty-two week low of $43.41 and a fifty-two week high of $98.79. The firm's fifty day moving average price is $58.44 and its 200-day moving average price is $71.18.

CAVA Group (NYSE:CAVA - Get Free Report) last posted its quarterly earnings data on Tuesday, August 11th. The company reported $0.19 earnings per share (EPS) for the quarter, beating 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 quarterly revenue was up 31.3% on a year-over-year basis. During the same quarter last year, the company earned $0.16 earnings per share. Sell-side analysts predict that CAVA Group will post 0.55 earnings per share for the current year.

CAVA Group declared that its Board of Directors has approved a stock repurchase plan on Friday, September 18th that permits the company to buy back $100.00 million in shares. This buyback authorization permits the company to repurchase up to 1.7% of its stock through open market purchases. Stock buyback plans are often a sign that the company's management believes its shares are undervalued.

Insider Buying and Selling at CAVA Group

In other news, insider Douglas Thompson bought 6,500 shares of the company's stock in a transaction that occurred on Monday, August 31st. The stock was bought at an average price of $66.52 per share, for a total transaction of $432,380.00. Following the transaction, the insider directly owned 19,371 shares of the company's stock, valued at $1,288,558.92. This represents a 50.50% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 6.70% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. BlackRock Inc. purchased a new position in CAVA Group in the 2nd quarter worth $757,013,000. Primecap Management Co. CA purchased a new stake in CAVA Group during the second quarter valued at about $92,956,000. William Blair Investment Management LLC purchased a new stake in CAVA Group during the second quarter valued at about $89,861,000. Prime Capital Management Co Ltd purchased a new stake in CAVA Group during the second quarter valued at about $80,962,000. Finally, Wellington Management Group LLP grew its stake in shares of CAVA Group by 76.9% during the second quarter. Wellington Management Group LLP now owns 1,605,508 shares of the company's stock valued at $126,000,000 after buying an additional 697,699 shares during the last quarter. 73.15% of the stock is owned by hedge funds and other institutional investors.

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.