CAVA Group, Inc. (NYSE:CAVA) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• CAVA Group has a consensus analyst rating of “Moderate Buy” from 28 covering firms, with an average 1-year price target of about $93.38.
• The company recently reported strong quarterly results, posting EPS of $0.20 versus a $0.17 estimate and revenue of $438.27 million, up 32.1% year over year.
• There has been notable insider selling, including shares sold by the CFO and another insider, while 73.15% of the stock is held by institutional investors and hedge funds.

CAVA Group, Inc. (NYSE:CAVA - Get Free Report) has earned an average rating of "Moderate Buy" from the twenty-eight ratings firms that are currently covering the firm, MarketBeat.com reports. One investment analyst has rated the stock with a sell rating, nine have assigned a hold rating, seventeen have issued a buy rating and one has issued a strong buy rating on the company. The average 1-year price objective among analysts that have updated their coverage on the stock in the last year is $93.3846.

Several equities research analysts have issued reports on CAVA shares. Royal Bank Of Canada lifted their price objective on CAVA Group from $100.00 to $105.00 and gave the stock an "outperform" rating in a report on Wednesday, May 20th. DA Davidson increased their target price on CAVA Group from $80.00 to $84.00 and gave the company a "neutral" rating in a research note on Thursday, May 21st. JPMorgan Chase & Co. raised their price target on shares of CAVA Group from $80.00 to $90.00 and gave the stock an "overweight" rating in a research report on Friday, April 24th. TD Cowen restated a "buy" rating and issued a $100.00 price target on shares of CAVA Group in a research note on Thursday, June 4th. Finally, Citigroup increased their price objective on shares of CAVA Group from $75.00 to $92.00 and gave the company a "neutral" rating in a research note on Monday, May 4th.

Insider Transactions at CAVA Group

In related news, CFO Tricia K. Tolivar sold 4,969 shares of the firm's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $89.43, for a total transaction of $444,377.67. Following the transaction, the chief financial officer directly owned 234,931 shares in the company, valued at $21,009,879.33. This trade represents a 2.07% decrease in their ownership of the stock. The sale 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, insider Kelly Costanza sold 12,490 shares of the firm's stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $90.00, for a total value of $1,124,100.00. Following the transaction, the insider owned 98,490 shares in the company, valued at $8,864,100. This trade represents a 11.25% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 91,747 shares of company stock valued at $7,970,838 over the last 90 days. Corporate insiders own 6.70% of the company's stock.

Institutional Trading of CAVA Group

Institutional investors and hedge funds have recently modified their holdings of the business. Capital Research Global Investors grew its holdings in shares of CAVA Group by 27.2% during the fourth quarter. Capital Research Global Investors now owns 8,440,040 shares of the company's stock valued at $495,344,000 after purchasing an additional 1,805,174 shares during the last quarter. Alliancebernstein L.P. lifted its holdings in shares of CAVA Group by 118.3% in the 3rd quarter. Alliancebernstein L.P. now owns 2,953,688 shares of the company's stock worth $178,432,000 after purchasing an additional 1,600,630 shares during the last quarter. Marshall Wace LLP boosted its position in CAVA Group by 689.8% during the 4th quarter. Marshall Wace LLP now owns 1,387,774 shares of the company's stock valued at $81,448,000 after purchasing an additional 1,212,068 shares during the period. Primecap Management Co. CA boosted its position in CAVA Group by 1,378.3% during the 4th quarter. Primecap Management Co. CA now owns 1,260,250 shares of the company's stock valued at $73,964,000 after purchasing an additional 1,175,000 shares during the period. Finally, Norges Bank acquired a new stake in CAVA Group in the fourth quarter worth $50,278,000. 73.15% of the stock is owned by institutional investors and hedge funds.

CAVA Group Trading Up 0.7%

Shares of CAVA stock opened at $72.70 on Tuesday. The firm has a fifty day simple moving average of $79.32 and a 200-day simple moving average of $76.94. The company has a market capitalization of $8.47 billion, a PE ratio of 139.81, a price-to-earnings-growth ratio of 4.95 and a beta of 1.69. CAVA Group has a twelve month low of $43.41 and a twelve month high of $98.79.

CAVA Group (NYSE:CAVA - Get Free Report) last released its quarterly earnings results 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 net margin of 4.79% and a return on equity of 7.92%. 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 previous year, the firm posted $0.22 EPS. The firm's quarterly revenue was up 32.1% on a year-over-year basis. Equities research analysts predict that CAVA Group will post 0.55 EPS for the current year.

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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