CAVA Group (NYSE:CAVA) Hits New 12-Month Low - Here's What Happened

Key Points

• CAVA Group's stock hit a new 12-month low, trading at $64.46, down from a previous close of $66.63.
• The company reported earnings of $0.16 per share for the last quarter, beating estimates, but revenue fell short of projections with $280.62 million.
• Several analysts have downgraded their price targets for CAVA, with consensus now at $96.41, reflecting a "Moderate Buy" rating across multiple firms.

CAVA Group, Inc. (NYSE:CAVA - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Monday . The company traded as low as $64.66 and last traded at $64.46, with a volume of 1365988 shares changing hands. The stock had previously closed at $66.63.

Wall Street Analyst Weigh In

A number of research firms have commented on CAVA. Argus set a $76.00 price target on shares of CAVA Group in a research report on Tuesday, September 2nd. Citigroup dropped their price target on shares of CAVA Group from $102.00 to $88.00 and set a "neutral" rating on the stock in a research report on Wednesday, August 13th. Sanford C. Bernstein set a $74.00 price objective on shares of CAVA Group in a research report on Wednesday, August 13th. KeyCorp cut their target price on CAVA Group from $100.00 to $85.00 and set an "overweight" rating on the stock in a research note on Wednesday, August 13th. Finally, JPMorgan Chase & Co. lowered their price target on shares of CAVA Group from $115.00 to $95.00 and set an "overweight" rating on the stock in a research report on Wednesday, June 25th. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $96.41.

CAVA Group Stock Down 1.8%

The stock has a market cap of $7.58 billion, a P/E ratio of 54.96, a P/E/G ratio of 3.33 and a beta of 2.62. The firm has a 50 day moving average price of $80.30 and a 200 day moving average price of $83.80.

CAVA Group (NYSE:CAVA - Get Free Report) last posted its quarterly earnings results on Tuesday, August 12th. The company reported $0.16 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.13 by $0.03. The company had revenue of $280.62 million for the quarter, compared to analyst estimates of $285.65 million. CAVA Group had a return on equity of 9.83% and a net margin of 12.98%.CAVA Group's revenue for the quarter was up 20.2% compared to the same quarter last year. During the same quarter last year, the company earned $0.17 EPS. Equities analysts predict that CAVA Group, Inc. will post 0.5 earnings per share for the current fiscal year.

Insider Activity at CAVA Group

In other CAVA Group news, CFO Tricia K. Tolivar sold 4,845 shares of CAVA Group stock in a transaction dated Monday, June 16th. The stock was sold at an average price of $75.16, for a total transaction of $364,150.20. Following the completion of the transaction, the chief financial officer owned 236,345 shares in the company, valued at approximately $17,763,690.20. This trade represents a 2.01% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Kelly Costanza sold 2,799 shares of the company's stock in a transaction on Monday, June 16th. The shares were sold at an average price of $75.16, for a total transaction of $210,372.84. Following the completion of the transaction, the insider owned 122,548 shares of the company's stock, valued at $9,210,707.68. This represents a 2.23% decrease in their position. The disclosure for this sale can be found here. Insiders sold 48,360 shares of company stock valued at $3,634,738 over the last three months. 12.10% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Jennison Associates LLC raised its stake in CAVA Group by 246.1% during the first quarter. Jennison Associates LLC now owns 8,519,459 shares of the company's stock worth $736,166,000 after acquiring an additional 6,057,727 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its holdings in shares of CAVA Group by 114.4% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 2,394,561 shares of the company's stock worth $206,915,000 after purchasing an additional 1,277,912 shares during the period. Vanguard Group Inc. grew its position in CAVA Group by 13.2% during the 1st quarter. Vanguard Group Inc. now owns 9,065,782 shares of the company's stock worth $783,374,000 after purchasing an additional 1,054,180 shares during the last quarter. Nuveen LLC acquired a new stake in CAVA Group in the 1st quarter worth about $72,800,000. Finally, Alliancebernstein L.P. increased its position in shares of CAVA Group by 2,072.1% during the first quarter. Alliancebernstein L.P. now owns 852,691 shares of the company's stock worth $73,681,000 after acquiring an additional 813,434 shares during the period. Institutional investors own 73.15% of the company's stock.

CAVA Group Company Profile

CAVA Group, Inc owns and operates a chain of restaurants under the CAVA brand in the United States. The company also offers dips, spreads, and dressings through grocery stores. In addition, the company provides online and mobile ordering platforms. Cava Group, Inc was founded in 2006 and is headquartered in Washington, the District of Columbia.

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