CAVA Group (NYSE:CAVA) Rating Increased to Strong Sell at Northcoast Research

Key Points

• Northcoast Research assigned CAVA a "strong sell" rating in its latest report.
• Despite that call, the Street consensus remains a Moderate Buy (1 Strong Buy, 16 Buy, 11 Hold, 1 Sell) with a consensus price target of $88.89; the stock trades near $96 with a market cap of $11.19B and a PE of ~178.
• CAVA modestly beat quarterly EPS estimates ($0.04 vs. $0.03) with revenue up 20.9% year-over-year, and insiders have recently sold shares (insiders own 12.1% of the company).

CAVA Group (NYSE:CAVA - Get Free Report) was upgraded by analysts at Northcoast Research to a "strong sell" rating in a research report issued on Tuesday,Zacks.com reports.

CAVA has been the topic of a number of other reports. Barclays lifted their price objective on shares of CAVA Group from $52.00 to $70.00 and gave the company an "equal weight" rating in a report on Wednesday, January 7th. DA Davidson initiated coverage on shares of CAVA Group in a report on Friday, March 6th. They set a "neutral" rating and a $80.00 target price on the stock. Wall Street Zen upgraded shares of CAVA Group from a "sell" rating to a "hold" rating in a report on Saturday, April 11th. Mizuho boosted their target price on shares of CAVA Group from $72.00 to $80.00 and gave the stock a "neutral" rating in a report on Thursday, April 2nd. Finally, UBS Group boosted their target price on shares of CAVA Group from $69.00 to $75.00 and gave the stock a "neutral" rating in a report on Wednesday, February 25th. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, CAVA Group presently has a consensus rating of "Moderate Buy" and a consensus price target of $88.89.

CAVA Group Stock Down 1.3%

NYSE CAVA opened at $96.11 on Tuesday. CAVA Group has a 12-month low of $43.41 and a 12-month high of $101.50. The company has a market capitalization of $11.19 billion, a PE ratio of 177.99, a price-to-earnings-growth ratio of 8.27 and a beta of 2.03. The firm's 50 day moving average is $80.38 and its 200-day moving average is $66.46.

CAVA Group (NYSE:CAVA - Get Free Report) last posted its quarterly earnings data on Tuesday, February 24th. The company reported $0.04 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.03 by $0.01. CAVA Group had a net margin of 5.40% and a return on equity of 8.43%. The company had revenue of $274.99 million for the quarter, compared to the consensus estimate of $268.04 million. During the same period last year, the company earned $0.05 earnings per share. The firm's revenue was up 20.9% compared to the same quarter last year. As a group, sell-side analysts expect that CAVA Group will post 0.5 EPS for the current year.

Insider Buying and Selling at CAVA Group

In other CAVA Group news, insider Kelly Costanza sold 1,707 shares of CAVA Group stock in a transaction on Tuesday, January 27th. The shares were sold at an average price of $62.14, for a total transaction of $106,072.98. Following the completion of the transaction, the insider directly owned 119,139 shares of the company's stock, valued at $7,403,297.46. The trade was a 1.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Brett Schulman sold 4,542 shares of CAVA Group stock in a transaction on Tuesday, January 27th. The stock was sold at an average price of $62.14, for a total transaction of $282,239.88. Following the transaction, the chief executive officer directly owned 802,783 shares of the company's stock, valued at approximately $49,884,935.62. This trade represents a 0.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 11,460 shares of company stock valued at $712,124 in the last 90 days. Company insiders own 12.10% of the company's stock.

Hedge Funds Weigh In On CAVA Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. DMC Group LLC boosted its position in CAVA Group by 3.7% during the fourth quarter. DMC Group LLC now owns 4,426 shares of the company's stock worth $260,000 after purchasing an additional 157 shares during the period. Bridgewater Associates LP boosted its position in CAVA Group by 2.4% during the fourth quarter. Bridgewater Associates LP now owns 6,827 shares of the company's stock worth $401,000 after purchasing an additional 163 shares during the period. Western Pacific Wealth Management LP boosted its position in CAVA Group by 32.5% during the fourth quarter. Western Pacific Wealth Management LP now owns 729 shares of the company's stock worth $43,000 after purchasing an additional 179 shares during the period. Envestnet Portfolio Solutions Inc. boosted its position in CAVA Group by 6.0% during the third quarter. Envestnet Portfolio Solutions Inc. now owns 3,852 shares of the company's stock worth $233,000 after purchasing an additional 219 shares during the period. Finally, Allworth Financial LP boosted its position in CAVA Group by 57.4% during the fourth quarter. Allworth Financial LP now owns 650 shares of the company's stock worth $38,000 after purchasing an additional 237 shares during the period. 73.15% of the stock is owned by institutional investors.

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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