CAVA Group (NYSE:CAVA) Sets New 1-Year Low - Time to Sell?

Key Points

• CAVA Group's shares hit a new 52-week low of $58.33 and last traded at $60.43, marking significant drops amid recent analyst ratings adjustments.
• Research firms have downgraded their price targets for CAVA Group, with the new consensus price target set at $96.41 following multiple rating changes.
• Despite the dip in stock price, CAVA Group reported a 20.2% increase in revenue year-over-year, posting earnings per share of $0.16, beating analysts’ expectations.

Shares of CAVA Group, Inc. (NYSE:CAVA - Get Free Report) reached a new 52-week low during trading on Wednesday . The company traded as low as $58.33 and last traded at $60.43, with a volume of 5531331 shares. The stock had previously closed at $58.76.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on CAVA. Sanford C. Bernstein set a $74.00 price objective on CAVA Group in a report on Wednesday, August 13th. Stifel Nicolaus lowered their price target on CAVA Group from $175.00 to $125.00 and set a "buy" rating for the company in a report on Wednesday, June 18th. UBS Group lowered their price target on CAVA Group from $96.00 to $75.00 and set a "neutral" rating for the company in a report on Wednesday, August 13th. Barclays lowered their price target on CAVA Group from $91.00 to $74.00 and set an "equal weight" rating for the company in a report on Wednesday, August 13th. Finally, TD Cowen lowered their price target on CAVA Group from $120.00 to $90.00 and set a "buy" rating for the company in a report on Wednesday, August 13th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat, CAVA Group presently has an average rating of "Moderate Buy" and a consensus price target of $96.41.

CAVA Group Trading Up 2.8%

The business's 50-day simple moving average is $72.08 and its two-hundred day simple moving average is $80.86. The company has a market capitalization of $7.01 billion, a PE ratio of 50.78, a PEG ratio of 2.94 and a beta of 2.61.

CAVA Group (NYSE:CAVA - Get Free Report) last posted its quarterly earnings data on Tuesday, August 12th. The company reported $0.16 earnings per share for the quarter, beating analysts' consensus estimates of $0.13 by $0.03. The company had revenue of $280.62 million during 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%. The firm's revenue for the quarter was up 20.2% on a year-over-year basis. During the same period in the prior year, the company posted $0.17 EPS. On average, analysts forecast that CAVA Group, Inc. will post 0.5 EPS for the current year.

Hedge Funds Weigh In On CAVA Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. First Horizon Advisors Inc. boosted its position in CAVA Group by 1,400.0% in the 1st quarter. First Horizon Advisors Inc. now owns 285 shares of the company's stock valued at $25,000 after buying an additional 266 shares during the last quarter. Vision Financial Markets LLC purchased a new position in CAVA Group in the 1st quarter valued at about $26,000. Dagco Inc. bought a new position in shares of CAVA Group during the first quarter worth about $27,000. Versant Capital Management Inc bought a new position in shares of CAVA Group during the first quarter worth about $31,000. Finally, Atlantic Union Bankshares Corp bought a new position in shares of CAVA Group during the second quarter worth about $31,000. 73.15% of the stock is owned by hedge funds and other institutional investors.

About CAVA Group

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.