CAVA Group (NYSE:CAVA) Sets New 52-Week Low After Analyst Downgrade

Key Points

• CAVA Group's stock hit a new 52-week low of $65.40 after Barclays downgraded its price target from $91.00 to $74.00, currently rating the stock as "equal weight."
• Despite this downgrade, CAVA has received mixed analyst ratings, with TD Securities maintaining a "buy" rating and a target price of $120.00, while others have lowered their targets significantly.
• Insider activity indicates that company executives have recently sold shares, with a total of 58,603 shares sold in the last three months, representing a trend among insiders to decrease their holdings.

Shares of CAVA Group, Inc. (NYSE:CAVA - Get Free Report) reached a new 52-week low on Wednesday after Barclays lowered their price target on the stock from $91.00 to $74.00. Barclays currently has an equal weight rating on the stock. CAVA Group traded as low as $65.40 and last traded at $70.17, with a volume of 2539958 shares traded. The stock had previously closed at $84.50.

A number of other equities research analysts have also weighed in on the stock. TD Securities reaffirmed a "buy" rating and set a $120.00 target price on shares of CAVA Group in a research note on Friday, May 16th. Stifel Nicolaus lowered their price target on CAVA Group from $175.00 to $125.00 and set a "buy" rating on the stock in a report on Wednesday, June 18th. JPMorgan Chase & Co. lowered their price objective on shares of CAVA Group from $115.00 to $95.00 and set an "overweight" rating on the stock in a research note on Wednesday, June 25th. Robert W. Baird lifted their target price on CAVA Group from $105.00 to $115.00 and gave the company an "outperform" rating in a research report on Friday, May 16th. Finally, Wall Street Zen cut shares of CAVA Group from a "hold" rating to a "sell" rating in a research note on Friday, June 27th. One research analyst has rated the stock with a sell rating, seven have issued a hold rating and twelve have issued a buy rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $105.61.

Insider Activity at CAVA Group

In related news, insider Jennifer Somers sold 2,861 shares of the business's stock in a transaction on Monday, June 16th. The shares were sold at an average price of $75.16, for a total value of $215,032.76. Following the completion of the sale, the insider owned 137,048 shares of the company's stock, valued at approximately $10,300,527.68. The trade was a 2.04% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Theodoros Xenohristos sold 3,062 shares of the firm's stock in a transaction dated Monday, June 16th. The shares were sold at an average price of $75.16, for a total transaction of $230,139.92. Following the completion of the transaction, the insider directly owned 350,209 shares in the company, valued at $26,321,708.44. This represents a 0.87% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 58,603 shares of company stock worth $4,522,089 in the last three months. Company insiders own 12.10% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CAVA. GAMMA Investing LLC boosted its holdings in shares of CAVA Group by 17,386.7% during the 1st quarter. GAMMA Investing LLC now owns 73,794 shares of the company's stock worth $6,377,000 after purchasing an additional 73,372 shares during the last quarter. SG Americas Securities LLC boosted its stake in CAVA Group by 768.4% during the first quarter. SG Americas Securities LLC now owns 220,816 shares of the company's stock worth $19,081,000 after buying an additional 195,389 shares during the last quarter. Crossmark Global Holdings Inc. purchased a new stake in CAVA Group in the 1st quarter valued at $257,000. Yousif Capital Management LLC purchased a new stake in CAVA Group in the 1st quarter valued at $2,429,000. Finally, Golden State Wealth Management LLC raised its holdings in shares of CAVA Group by 101.9% during the 1st quarter. Golden State Wealth Management LLC now owns 848 shares of the company's stock worth $73,000 after acquiring an additional 428 shares during the period. Hedge funds and other institutional investors own 73.15% of the company's stock.

CAVA Group Stock Performance

The stock has a market cap of $8.12 billion, a price-to-earnings ratio of 58.58, a PEG ratio of 4.11 and a beta of 2.65. The firm's 50-day moving average price is $83.46 and its two-hundred day moving average price is $92.30.

CAVA Group (NYSE:CAVA - Get Free Report) last released its quarterly earnings data on Tuesday, August 12th. The company reported $0.16 EPS for the quarter, beating analysts' consensus estimates of $0.13 by $0.03. CAVA Group had a return on equity of 10.61% and a net margin of 13.70%. The firm had revenue of $280.62 million for the quarter, compared to analysts' expectations of $285.65 million. During the same period in the prior year, the firm posted $0.17 earnings per share. The firm's quarterly revenue was up 20.2% on a year-over-year basis. As a group, sell-side analysts expect that CAVA Group, Inc. will post 0.5 earnings per share for the current fiscal year.

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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