Robert W. Baird Upgrades CAVA Group (NYSE:CAVA) to Strong-Buy

Key Points

• Robert W. Baird upgraded CAVA Group to “strong buy,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $89.44.
• CAVA reported quarterly earnings of $0.19 per share, exceeding estimates by $0.01, while revenue reached $368.44 million, up 31.3% year over year and ahead of expectations.
• The stock opened at $69.25, significantly below its 52-week high of $98.79; however, its valuation remains elevated at a P/E ratio of 125.92.

CAVA Group (NYSE:CAVA - Get Free Report) was upgraded by Robert W. Baird to a "strong-buy" rating in a research note issued to investors on Monday,Zacks.com reports.

Other research analysts also recently issued research reports about the stock. Morgan Stanley raised shares of CAVA Group from an "equal weight" rating to an "overweight" rating and increased their price objective for the company from $86.00 to $90.00 in a report on Wednesday, July 15th. Sanford C. Bernstein reiterated an "outperform" rating on shares of CAVA Group in a research report on Wednesday, August 12th. Northcoast Research raised CAVA Group from a "sell" rating to a "neutral" rating in a research note on Thursday, August 13th. Telsey Advisory Group increased their price target on CAVA Group from $92.00 to $95.00 and gave the company an "outperform" rating in a research note on Wednesday, May 20th. Finally, BMO Capital Markets set a $100.00 price target on CAVA Group in a report on Wednesday, May 20th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and nine have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $89.44.

CAVA Group Stock Performance

Shares of NYSE:CAVA opened at $69.25 on Monday. The firm has a fifty day moving average price of $71.28 and a 200 day moving average price of $77.39. CAVA Group has a fifty-two week low of $43.41 and a fifty-two week high of $98.79. The firm has a market cap of $8.09 billion, a price-to-earnings ratio of 125.92, a P/E/G ratio of 4.95 and a beta of 1.74.

CAVA Group (NYSE:CAVA - Get Free Report) last posted 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 company had revenue of $368.44 million during the quarter, compared to analysts' expectations of $360.09 million. CAVA Group had a net margin of 4.82% and a return on equity of 8.28%. CAVA Group's quarterly revenue was up 31.3% on a year-over-year basis. During the same period last year, the company posted $0.16 earnings per share. As a group, research analysts predict that CAVA Group will post 0.53 earnings per share for the current year.

Insider Buying and Selling at CAVA Group

In other news, insider Kelly Costanza sold 12,490 shares of the company's stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $90.00, for a total transaction of $1,124,100.00. Following the sale, the insider directly owned 98,490 shares in the company, valued at approximately $8,864,100. This represents a 11.25% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Brett Schulman sold 33,174 shares of the stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $89.43, for a total transaction of $2,966,750.82. Following the completion of the transaction, the chief executive officer directly owned 798,669 shares of the company's stock, valued at approximately $71,424,968.67. The trade was a 3.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 67,512 shares of company stock valued at $6,050,417 over the last ninety days. Corporate insiders own 6.70% of the company's stock.

Institutional Investors Weigh In On CAVA Group

Several large investors have recently added to or reduced their stakes in CAVA. Los Angeles Capital Management LLC bought a new stake in shares of CAVA Group in the 4th quarter valued at approximately $25,000. Ancora Advisors LLC bought a new position in shares of CAVA Group during the 2nd quarter valued at approximately $27,000. FNY Investment Advisers LLC purchased a new stake in CAVA Group during the 2nd quarter valued at $31,000. Philadelphia Investment Partners LLC purchased a new stake in CAVA Group during the 2nd quarter valued at $33,000. Finally, TD Private Client Wealth LLC lifted its position in CAVA Group by 118.2% in the fourth quarter. TD Private Client Wealth LLC now owns 600 shares of the company's stock worth $35,000 after buying an additional 325 shares during the last quarter. 73.15% of the stock is owned by institutional investors.

CAVA Group Company Profile

CAVA Group, Inc NYSE: CAVA is a leading fast-casual restaurant company specializing in Mediterranean-inspired cuisine. Operating under the CAVA brand, the company offers customizable bowls, pitas and salads built around a variety of proteins, grains, fresh vegetables and house-made spreads. With a focus on high-quality ingredients and made-to-order preparation, CAVA aims to deliver a casual yet elevated dining experience for dine-in, takeout and catering customers.

Founded in 2011 in the Washington, DC metro area by Ike Grigoropoulos, Dimitri Katsanis and Brett Schulman, CAVA has pursued an aggressive growth strategy that included the 2018 acquisition of Zoe's Kitchen.

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