TD Cowen Has Lowered Expectations for CAVA Group (NYSE:CAVA) Stock Price

Key Points

• TD Cowen lowered its CAVA Group price target from $85 to $78 while maintaining a “Buy” rating, implying 35.27% upside from the stock’s previous close.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and average price target of $88.62, despite several recent rating and target changes.
• CAVA reported quarterly revenue of $368.44 million, up 31.3% year over year, and earnings of $0.19 per share, while also authorizing a $100 million share repurchase program.

CAVA Group (NYSE:CAVA - Get Free Report) had its price target dropped by stock analysts at TD Cowen from $85.00 to $78.00 in a research note issued on Wednesday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. TD Cowen's price target would indicate a potential upside of 35.27% from the stock's previous close.

A number of other research firms also recently issued reports on CAVA. Northcoast Research upgraded shares of CAVA Group from a "sell" rating to a "neutral" rating in a research note on Thursday, August 13th. Freedom Capital raised shares of CAVA Group to a "hold" rating in a research note on Wednesday, July 1st. Guggenheim reduced their price objective on shares of CAVA Group from $100.00 to $95.00 and set a "buy" rating for the company in a research note on Thursday, August 13th. Melius Research upgraded CAVA Group from a "hold" rating to a "buy" rating and set a $95.00 target price for the company in a report on Thursday, October 8th. Finally, Compass Point raised CAVA Group to a "neutral" rating in a research report on Monday, September 14th. One analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and ten have assigned a Hold rating to the stock. Based on data from MarketBeat.com, CAVA Group has a consensus rating of "Moderate Buy" and an average target price of $88.62.

CAVA Group Price Performance

Shares of CAVA Group stock opened at $57.66 on Wednesday. CAVA Group has a 1 year low of $43.41 and a 1 year high of $98.79. The firm's 50-day moving average is $59.10 and its two-hundred day moving average is $71.53. The stock has a market cap of $6.74 billion, a price-to-earnings ratio of 105.27, a PEG ratio of 4.48 and a beta of 1.80.

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

CAVA Group announced that its Board of Directors has authorized a share buyback program on Friday, September 18th that allows the company to buy back $100.00 million in outstanding shares. This buyback authorization allows the company to repurchase up to 1.7% of its shares through open market purchases. Stock buyback programs are generally a sign that the company's management believes its stock is undervalued.

Insider Activity at CAVA Group

In related news, insider Douglas Thompson acquired 6,500 shares of the firm'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 transaction, the insider directly owned 19,371 shares of the company's stock, valued at $1,288,558.92. This trade represents a 50.50% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 6.70% of the stock is owned by insiders.

Institutional Trading of CAVA Group

Several large investors have recently bought and sold shares of CAVA. Trillium Asset Management LLC acquired a new stake in shares of CAVA Group in the second quarter worth $3,279,000. Oppenheimer Asset Management Inc. acquired a new position in CAVA Group during the second quarter valued at $1,551,000. Prospect Financial Services LLC acquired a new position in CAVA Group during the second quarter valued at $1,348,000. Connor Clark & Lunn Investment Management Ltd. acquired a new position in CAVA Group during the second quarter valued at $6,833,000. Finally, Ameritas Advisory Services LLC acquired a new position in CAVA Group during the second quarter valued at $2,492,000. Hedge funds and other institutional investors 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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