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

Key Points

• Mizuho lowered its CAVA price target from $56 to $54 and maintained a neutral rating, implying 11.79% downside from the prior close.
• Analyst views remain broadly positive: CAVA has a “Moderate Buy” consensus rating and an average price target of $83.81, despite several firms recently cutting their targets.
• CAVA’s latest quarter missed earnings and revenue estimates, though revenue grew 21% year over year. The company also authorized a $100 million share repurchase program.

CAVA Group (NYSE:CAVA - Get Free Report) had its price objective reduced by analysts at Mizuho from $56.00 to $54.00 in a note issued to investors on Monday, Benzinga reports. The firm currently has a "neutral" rating on the stock. Mizuho's price target points to a potential downside of 11.79% from the stock's previous close.

Other research analysts have also recently issued research reports about the stock. Royal Bank Of Canada cut their price target on shares of CAVA Group from $85.00 to $80.00 and set an "outperform" rating for the company in a research note on Thursday. KeyCorp lowered their price objective on CAVA Group from $80.00 to $75.00 and set an "overweight" rating on the stock in a research note on Thursday. Guggenheim dropped their target price on CAVA Group from $100.00 to $95.00 and set a "buy" rating for the company in a report on Thursday, August 13th. Roth Capital restated a "buy" rating and set a $95.00 target price (down from $106.00) on shares of CAVA Group in a research report on Wednesday, August 12th. Finally, Wall Street Zen downgraded CAVA Group from a "hold" rating to a "sell" rating in a research report on Saturday. One 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. According to data from MarketBeat.com, CAVA Group has an average rating of "Moderate Buy" and a consensus price target of $83.81.

CAVA Group Stock Performance

Shares of CAVA stock traded up $2.07 during mid-day trading on Monday, reaching $61.22. The company's stock had a trading volume of 1,319,611 shares, compared to its average volume of 3,389,795. CAVA Group has a 1-year low of $43.41 and a 1-year high of $98.79. The company has a market cap of $7.15 billion, a P/E ratio of 113.27, a PEG ratio of 4.61 and a beta of 1.75. The firm's 50-day moving average is $55.73 and its two-hundred day moving average is $71.09.

CAVA Group (NYSE:CAVA - Get Free Report) last issued its earnings results on Wednesday, November 4th. The company reported $0.11 earnings per share for the quarter, missing the consensus estimate of $0.12 by ($0.01). The business had revenue of $356.44 million for the quarter, compared to analyst estimates of $358.40 million. CAVA Group had a net margin of 4.50% and a return on equity of 7.87%. CAVA Group's revenue was up 21.0% on a year-over-year basis. During the same quarter last year, the firm posted $0.12 earnings per share. Sell-side analysts anticipate that CAVA Group will post 0.54 EPS for the current year.

CAVA Group announced that its Board of Directors has initiated a share repurchase program on Friday, September 18th that permits the company to repurchase $100 million in outstanding shares. This buyback authorization permits the company to purchase up to 1.7% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's leadership believes its shares are undervalued.

Insider Transactions at CAVA Group

In other news, insider Douglas Thompson purchased 6,500 shares of the business's 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 acquisition, the insider directly owned 19,371 shares of the company's stock, valued at approximately $1,288,558.92. This trade represents a 50.50% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. 6.70% of the stock is owned by corporate insiders.

Institutional Trading of CAVA Group

Several large investors have recently added to or reduced their stakes in CAVA. Allworth Financial LP increased its holdings in CAVA Group by 26.8% during the 3rd quarter. Allworth Financial LP now owns 964 shares of the company's stock valued at $52,000 after purchasing an additional 204 shares in the last quarter. Maryland State Retirement & Pension System raised its position in CAVA Group by 26.7% in the 3rd quarter. Maryland State Retirement & Pension System now owns 6,143 shares of the company's stock valued at $332,000 after purchasing an additional 1,293 shares during the last quarter. Keybank National Association OH boosted its stake in CAVA Group by 34.7% in the third quarter. Keybank National Association OH now owns 10,046 shares of the company's stock worth $543,000 after purchasing an additional 2,587 shares in the last quarter. D.B. Root & Company LLC boosted its stake in CAVA Group by 17.3% in the third quarter. D.B. Root & Company LLC now owns 9,727 shares of the company's stock worth $526,000 after purchasing an additional 1,436 shares in the last quarter. Finally, New York Life Investment Management LLC acquired a new position in CAVA Group in the third quarter worth $797,000. 73.15% of the stock is owned by institutional investors.

About CAVA Group

CAVA Group operates CAVA, a fast-casual restaurant brand focused on Mediterranean-inspired food. Its menu includes customizable bowls, pitas and salads, along with dips, spreads, sides and beverages.

The business began in 2006 with a Mediterranean restaurant in Rockville, Maryland, founded by childhood friends Brett Schulman, Dimitri Moshovitis and Ted Xenohristos. CAVA has since grown into a restaurant chain serving customers in multiple U.S. states.

Co-founder Brett Schulman serves as CAVA Group's chief executive officer.

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