CAVA Group, Inc. (NYSE:CAVA) Given Consensus Rating of "Moderate Buy" by Brokerages

Key Points

• CAVA Group has a consensus analyst rating of “Moderate Buy” from 28 brokerages, with the average 12-month price target around $93.19.
• The company posted strong quarterly results, including EPS of $0.20 versus an expected $0.17 and revenue of $438.27 million, up 32.1% year over year.
• Recent activity has been mixed but generally positive: several firms raised or reiterated bullish ratings, while a few insiders sold shares and institutional ownership remains high at 73.15%.

CAVA Group, Inc. (NYSE:CAVA - Get Free Report) has earned a consensus rating of "Moderate Buy" from the twenty-eight brokerages that are presently covering the company, Marketbeat.com reports. One investment analyst has rated the stock with a sell rating, ten have given a hold rating, sixteen have issued a buy rating and one has issued a strong buy rating on the company. The average 12 month price objective among brokerages that have issued ratings on the stock in the last year is $93.1852.

A number of research firms have recently weighed in on CAVA. Sanford C. Bernstein reissued an "outperform" rating and issued a $95.00 price target on shares of CAVA Group in a research note on Wednesday. Citigroup increased their price target on CAVA Group from $75.00 to $92.00 and gave the company a "neutral" rating in a research note on Monday, May 4th. Guggenheim began coverage on CAVA Group in a research note on Thursday, March 26th. They issued a "buy" rating and a $100.00 price target on the stock. Piper Sandler increased their price target on CAVA Group from $85.00 to $92.00 and gave the company an "overweight" rating in a research note on Wednesday. Finally, Mizuho increased their price target on CAVA Group from $72.00 to $80.00 and gave the company a "neutral" rating in a research note on Thursday, April 2nd.

CAVA Group Stock Performance

NYSE:CAVA opened at $80.41 on Monday. The stock's fifty day moving average price is $84.97 and its two-hundred day moving average price is $69.85. CAVA Group has a 52-week low of $43.41 and a 52-week high of $98.79. The company has a market cap of $9.37 billion, a price-to-earnings ratio of 154.63, a P/E/G ratio of 5.61 and a beta of 1.90.

CAVA Group (NYSE:CAVA - Get Free Report) last posted its quarterly earnings data on Tuesday, May 19th. The company reported $0.20 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.17 by $0.03. CAVA Group had a return on equity of 7.92% and a net margin of 4.79%.The firm had revenue of $438.27 million for the quarter, compared to the consensus estimate of $360.89 million. During the same quarter in the prior year, the business earned $0.22 EPS. The business's revenue for the quarter was up 32.1% compared to the same quarter last year. On average, equities analysts predict that CAVA Group will post 0.54 EPS for the current fiscal year.

Insider Activity

In other news, insider Theodoros Xenohristos sold 9,044 shares of the stock in a transaction on Monday, May 11th. The stock was sold at an average price of $79.75, for a total value of $721,259.00. Following the transaction, the insider owned 327,882 shares of the company's stock, valued at $26,148,589.50. This represents a 2.68% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Adam David Phillips sold 5,181 shares of the stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $77.14, for a total value of $399,662.34. Following the completion of the transaction, the chief accounting officer directly owned 9,505 shares in the company, valued at approximately $733,215.70. This trade represents a 35.28% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 24,235 shares of company stock valued at $1,920,420 in the last 90 days. 6.70% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in CAVA. Los Angeles Capital Management LLC acquired a new position in shares of CAVA Group in the 4th quarter valued at $25,000. Cornerstone Planning Group LLC raised its stake in CAVA Group by 378.7% during the 3rd quarter. Cornerstone Planning Group LLC now owns 450 shares of the company's stock worth $27,000 after buying an additional 356 shares during the period. Harbor Investment Advisory LLC raised its stake in CAVA Group by 347.8% during the 4th quarter. Harbor Investment Advisory LLC now owns 515 shares of the company's stock worth $30,000 after buying an additional 400 shares during the period. TD Private Client Wealth LLC raised its stake in CAVA Group by 118.2% during the 4th 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 period. Finally, Strategic Investment Solutions Inc. IL acquired a new stake in CAVA Group during the 3rd quarter worth $36,000. Institutional investors and hedge funds own 73.15% of the company's stock.

CAVA Group News Roundup

Here are the key news stories impacting CAVA Group this week:

• Positive Sentiment: Argus upgraded CAVA Group from hold to buy, reinforcing the optimistic post-earnings sentiment around the stock. Argus upgrade coverage
• Positive Sentiment: Analyst commentary continued to lean bullish, with Piper Sandler reaffirming a buy rating, Roth MKM reiterating buy, and TD Cowen maintaining a buy call. Piper Sandler coverage
• Positive Sentiment: Recent coverage highlighted strong Q1 results, including 9.7% same-restaurant sales growth and improved operating leverage, which supports the case for continued fundamental momentum. Seeking Alpha article
• Neutral Sentiment: DA Davidson raised its price target to $84 from $80 but kept a neutral rating, suggesting upside potential but also valuation caution. DA Davidson price target update
• Neutral Sentiment: Insider selling was disclosed by CAO Adam David Phillips and insider Kelly Costanza, though Costanza’s sale was tied to tax withholding on vesting equity awards, making the signal less negative than a discretionary sale. SEC filing

About CAVA Group

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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