JPMorgan Chase & Co. Issues Pessimistic Forecast for CAVA Group (NYSE:CAVA) Stock Price

Key Points

• JPMorgan lowered CAVA Group’s price target from $85 to $80 while maintaining an “overweight” rating, implying roughly 55% upside from the stock’s previous close.
• Analyst sentiment remains broadly positive, with CAVA carrying a consensus “Moderate Buy” rating and an average price target of $88.64, despite several recent target reductions.
• CAVA reported quarterly revenue of $368.44 million, up 31.3% year over year, and earnings of $0.19 per share, exceeding analyst estimates.

CAVA Group (NYSE:CAVA - Get Free Report) had its target price lowered by research analysts at JPMorgan Chase & Co. from $85.00 to $80.00 in a research note issued to investors on Friday, Benzinga reports. The brokerage presently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s target price would suggest a potential upside of 54.96% from the stock's previous close.

A number of other brokerages also recently issued reports on CAVA. Royal Bank Of Canada reduced their price target on CAVA Group from $95.00 to $85.00 and set an "outperform" rating on the stock in a report on Thursday. Seaport Research Partners initiated coverage on CAVA Group in a report on Wednesday. They issued a "buy" rating and a $58.00 price objective for the company. UBS Group upgraded CAVA Group from a "neutral" rating to a "buy" rating and lifted their price objective for the stock from $85.00 to $90.00 in a research report on Wednesday, June 10th. TD Cowen decreased their target price on CAVA Group from $100.00 to $85.00 and set a "buy" rating for the company in a report on Wednesday, August 12th. Finally, Northcoast Research raised CAVA Group from a "sell" rating to a "neutral" rating in a research note on Thursday, August 13th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and ten have issued a Hold rating to the company's stock. According to data from MarketBeat.com, CAVA Group presently has an average rating of "Moderate Buy" and a consensus price target of $88.64.

CAVA Group Price Performance

CAVA Group stock traded up $0.41 during trading hours on Friday, reaching $51.62. The company had a trading volume of 1,438,579 shares, compared to its average volume of 3,364,495. CAVA Group has a 12-month low of $43.41 and a 12-month high of $98.79. The company has a 50-day moving average price of $64.48 and a 200 day moving average price of $76.08. The firm has a market cap of $6.03 billion, a price-to-earnings ratio of 93.93, a P/E/G ratio of 3.86 and a beta of 1.74.

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

Insider Buying and Selling at CAVA Group

In other CAVA Group news, insider Douglas Thompson acquired 6,500 shares of the business's stock in a transaction on Monday, August 31st. The shares were acquired at an average price of $66.52 per share, for a total transaction of $432,380.00. Following the completion of the acquisition, the insider 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 acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 6.70% of the stock is owned by corporate insiders.

Institutional Trading of CAVA Group

A number of institutional investors and hedge funds have recently modified their holdings of the business. BlackRock Inc. bought a new stake in CAVA Group during the second quarter valued at approximately $757,013,000. Capital Research Global Investors increased its holdings in CAVA Group by 27.2% in the 4th quarter. Capital Research Global Investors now owns 8,440,040 shares of the company's stock worth $495,344,000 after acquiring an additional 1,805,174 shares in the last quarter. Primecap Management Co. CA bought a new stake in CAVA Group during the 2nd quarter worth approximately $92,956,000. William Blair Investment Management LLC purchased a new position in CAVA Group during the second quarter valued at approximately $89,861,000. Finally, Prime Capital Management Co Ltd bought a new position in shares of CAVA Group in the second quarter worth approximately $80,962,000. Institutional investors own 73.15% of the company's stock.

CAVA Group Company Profile

CAVA Group, Inc is a U.S.-based restaurant company that operates the CAVA fast-casual Mediterranean restaurant brand. Its restaurants offer customizable meals, including grain bowls, salads, pitas, dips, spreads and sides made with Mediterranean-inspired ingredients and flavors. Customers can order meals in restaurants, through digital channels and for catering.

The company's menu is centered on a build-your-own format, allowing guests to select proteins, grains, greens, toppings, sauces and dips.

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