CAVA Group (NYSE:CAVA) Reaches New 12-Month Low - Should You Sell?

Key Points

• CAVA Group shares have hit a new 52-week low of $62.94, prompting concerns about whether it’s time to sell.
• Multiple analyst downgrades have reduced CAVA's price target, with significant drops from firms like TD Cowen and UBS Group, where targets were cut to $90.00 and $75.00, respectively.
• Despite recent challenges, CAVA Group reported a 20.2% year-over-year increase in revenue, posting $280.62 million, although it fell short of analyst expectations of $285.65 million.

CAVA Group, Inc. (NYSE:CAVA - Get Free Report) reached a new 52-week low on Monday . The company traded as low as $62.94 and last traded at $63.28, with a volume of 238195 shares trading hands. The stock had previously closed at $63.63.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on CAVA. Citigroup lowered their price objective on CAVA Group from $102.00 to $88.00 and set a "neutral" rating on the stock in a research note on Wednesday, August 13th. Cfra Research upgraded CAVA Group to a "strong-buy" rating in a research report on Thursday, August 14th. Wall Street Zen lowered shares of CAVA Group from a "hold" rating to a "sell" rating in a report on Friday, June 27th. JPMorgan Chase & Co. lowered their target price on shares of CAVA Group from $115.00 to $95.00 and set an "overweight" rating on the stock in a report on Wednesday, June 25th. Finally, Sanford C. Bernstein set a $74.00 price objective on shares of CAVA Group in a research note on Wednesday, August 13th. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $96.41.

CAVA Group Trading Up 0.1%

The business's fifty day simple moving average is $76.26 and its 200 day simple moving average is $81.90. The stock has a market cap of $7.38 billion, a P/E ratio of 53.49, a price-to-earnings-growth ratio of 3.12 and a beta of 2.61.

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

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. First Horizon Advisors Inc. boosted its position in shares of CAVA Group by 1,400.0% in the 1st quarter. First Horizon Advisors Inc. now owns 285 shares of the company's stock worth $25,000 after purchasing an additional 266 shares during the last quarter. Vision Financial Markets LLC bought a new position in CAVA Group during the first quarter worth about $26,000. Dagco Inc. bought a new position in CAVA Group during the first quarter worth about $27,000. Versant Capital Management Inc bought a new position in CAVA Group during the 1st quarter worth approximately $31,000. Finally, Atlantic Union Bankshares Corp bought a new position in CAVA Group during the 2nd quarter worth approximately $31,000. 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.