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

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 $93.37.
• Recent analyst notes remained constructive, including price-target increases from firms like Stifel Nicolaus and BMO Capital Markets, with targets reaching as high as $105.
• The company’s latest earnings beat expectations, posting $0.20 EPS on $438.27 million in revenue, while insider selling by executives, including CEO Brett Schulman, has recently drawn attention.

CAVA Group, Inc. (NYSE:CAVA - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the twenty-eight ratings firms that are presently covering the company, MarketBeat reports. One equities research analyst has rated the stock with a sell recommendation, nine have given a hold recommendation, seventeen have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year price target among brokerages that have covered the stock in the last year is $93.3704.

A number of analysts recently commented on the company. DA Davidson raised their price target on CAVA Group from $80.00 to $84.00 and gave the stock a "neutral" rating in a research note on Thursday, May 21st. Argus set a $92.00 price target on CAVA Group in a research note on Friday, May 22nd. BMO Capital Markets set a $100.00 price target on CAVA Group in a research note on Wednesday, May 20th. Stifel Nicolaus raised their price target on CAVA Group from $90.00 to $105.00 and gave the stock a "buy" rating in a research note on Wednesday, May 20th. Finally, Sanford C. Bernstein reaffirmed an "outperform" rating and issued a $95.00 price target on shares of CAVA Group in a research note on Wednesday, May 20th.

Insider Buying and Selling

In related news, CEO Brett Schulman sold 33,174 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 value of $2,966,750.82. Following the completion of the sale, the chief executive officer owned 798,669 shares of the company's stock, valued at $71,424,968.67. This trade represents a 3.99% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Adam David Phillips sold 757 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 value of $67,698.51. Following the completion of the sale, the chief accounting officer directly owned 6,848 shares of the company's stock, valued at $612,416.64. The trade was a 9.95% 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 a total of 81,747 shares of company stock valued at $7,070,838 over the last three months. Insiders own 6.70% of the company's stock.

Hedge Funds Weigh In On CAVA Group

Several institutional investors and hedge funds have recently added to or reduced their stakes in CAVA. Capital International Investors lifted its position in CAVA Group by 105.4% during the third quarter. Capital International Investors now owns 4,228,736 shares of the company's stock valued at $255,451,000 after buying an additional 2,169,553 shares during the period. William Blair Investment Management LLC purchased a new position in shares of CAVA Group in the 3rd quarter worth about $114,098,000. Capital Research Global Investors raised its position in shares of 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 purchasing an additional 1,805,174 shares during the last quarter. Alliancebernstein L.P. raised its position 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. Finally, Marshall Wace LLP raised its position in CAVA Group by 689.8% in the 4th quarter. Marshall Wace LLP now owns 1,387,774 shares of the company's stock worth $81,448,000 after buying an additional 1,212,068 shares during the last quarter. Hedge funds and other institutional investors own 73.15% of the company's stock.

More CAVA Group News

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

• Positive Sentiment: Jim Cramer reiterated a bullish view on CAVA, calling it “the best of the new concepts” and recommending it as a buy, which may be boosting investor sentiment. Article: Jim Cramer Calls CAVA 'Tasty, Clean, Fun,' Says Make This Biotech 'Your Speculation'
• Positive Sentiment: The company’s latest earnings beat continues to support the stock, with CAVA posting $0.20 EPS versus $0.17 expected and revenue of $438.27 million versus $360.89 million expected. Article: Cava (CAVA) Up 9.3% Since Last Earnings Report: Can It Continue?
• Neutral Sentiment: Analysts remain generally constructive, with a “Moderate Buy” consensus and an average price target above the current share price, reinforcing the longer-term growth narrative. Article: 2 Restaurant Stocks, 2 Earnings Beats, 2 Very Different Setups
• Negative Sentiment: Several insiders, including CEO Brett Schulman, CFO Tricia K. Tolivar, CAO Adam David Phillips, and executive Theodoros Xenohristos, sold shares near recent highs. The sales were tied to tax withholding on equity awards, but the broad insider selling could weigh on sentiment. Article: Insider Selling: CAVA Group NYSE: CAVA CEO Sells 33,174 Shares of Stock

CAVA Group Stock Performance

Shares of CAVA Group stock opened at $89.15 on Friday. CAVA Group has a 52-week low of $43.41 and a 52-week high of $98.79. The stock has a market capitalization of $10.38 billion, a price-to-earnings ratio of 171.44, a P/E/G ratio of 6.04 and a beta of 1.70. The company's 50 day moving average price is $84.11 and its 200-day moving average price is $74.17.

CAVA Group (NYSE:CAVA - Get Free Report) last issued its 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 analysts' expectations of $360.89 million. During the same quarter last year, the business earned $0.22 earnings per share. The business's revenue was up 32.1% on a year-over-year basis. As a group, equities research analysts forecast that CAVA Group will post 0.55 earnings per share for the current fiscal 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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