CAVA Group (NYSE:CAVA) Stock Price Target Lowered at Mizuho

Key Points

• Mizuho lowered CAVA Group’s price target from $70 to $56 while maintaining a “neutral” rating, implying 5.42% downside from the stock’s prior close.
• Analyst sentiment remains broadly positive, with MarketBeat reporting a “Moderate Buy” consensus and an average price target of $86.81, despite differing views from other firms.
• CAVA reported quarterly EPS of $0.19 and revenue of $368.44 million, exceeding estimates, while also authorizing a $100 million share-repurchase program covering up to 1.7% of its shares.

CAVA Group (NYSE:CAVA - Get Free Report) had its target price lowered by equities researchers at Mizuho from $70.00 to $56.00 in a report issued on Friday, Benzinga reports. The firm presently has a "neutral" rating on the stock. Mizuho's price objective points to a potential downside of 5.42% from the stock's previous close.

Several other equities research analysts have also recently weighed in on CAVA. Melius Research raised CAVA Group from a "hold" rating to a "buy" rating and set a $95.00 price objective for the company in a research report on Thursday, October 8th. DA Davidson dropped their target price 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. Compass Point upgraded shares of CAVA Group to a "neutral" rating in a research note on Monday, September 14th. Wolfe Research increased their price target on shares of CAVA Group from $79.00 to $82.00 and gave the company an "outperform" rating in a report on Wednesday, August 12th. Finally, Seaport Research Partners began coverage on shares of CAVA Group in a research report on Wednesday, September 16th. They issued a "buy" rating and a $58.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and ten have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $86.81.

CAVA Group Stock Performance

CAVA Group stock opened at $59.21 on Friday. CAVA Group has a 52 week low of $43.41 and a 52 week high of $98.79. The firm has a market capitalization of $6.92 billion, a PE ratio of 107.65, a PEG ratio of 4.32 and a beta of 1.80. The business's 50-day simple moving average is $56.93 and its 200-day simple moving average is $71.40.

CAVA Group (NYSE:CAVA - Get Free Report) last announced its earnings results on Tuesday, August 11th. The company reported $0.19 earnings per share for the quarter, beating the consensus estimate of $0.18 by $0.01. The firm had revenue of $368.44 million during the quarter, compared to the consensus estimate 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 for the quarter was up 31.3% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.16 EPS. Research analysts forecast 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 share repurchase plan on Friday, September 18th that permits the company to repurchase $100 million in shares. This repurchase authorization permits the company to purchase up to 1.7% of its shares through open market purchases. Stock repurchase plans are often an indication that the company's board of directors believes its shares are undervalued.

Insider Activity at CAVA Group

In other news, insider Douglas Thompson bought 6,500 shares of CAVA Group stock in a transaction that occurred on Monday, August 31st. The stock was purchased at an average cost of $66.52 per share, with a total value of $432,380.00. Following the completion of the transaction, the insider directly owned 19,371 shares in the company, valued at $1,288,558.92. This trade represents 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 accessible through this hyperlink. Insiders own 6.70% of the company's stock.

Hedge Funds Weigh In On CAVA Group

Hedge funds have recently made changes to their positions in the business. Ancora Advisors LLC acquired a new stake in shares of CAVA Group during the 2nd quarter valued at about $27,000. FNY Investment Advisers LLC bought a new stake in CAVA Group in the second quarter valued at about $31,000. Philadelphia Investment Partners LLC acquired a new position in CAVA Group in the second quarter worth about $33,000. CX Institutional bought a new position in CAVA Group during the third quarter worth about $26,000. Finally, Scarborough Advisors LLC bought a new position in CAVA Group during the first quarter worth about $54,000. Institutional investors and hedge funds own 73.15% of the company's stock.

CAVA Group Company Profile

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.

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