CAVA Group (NYSE:CAVA) Sets New 52-Week Low - Time to Sell?

Key Points

• CAVA Group shares hit a new 52-week low at $65.66, with significant trading volume of over 3.8 million shares, suggesting increased market activity and potential investor concern.
• Analyst ratings for CAVA Group have been mixed, with price targets reduced by firms like Morgan Stanley and KeyCorp, while Cfra Research upgraded the stock to a "strong-buy" rating.
• The company's recent earnings report indicated an EPS of $0.16, exceeding expectations, but revenue fell short at $280.62 million compared to analyst estimates, highlighting a discrepancy in market performance.

CAVA Group, Inc. (NYSE:CAVA - Get Free Report) shares reached a new 52-week low on Monday . The company traded as low as $65.66 and last traded at $65.76, with a volume of 3800524 shares changing hands. The stock had previously closed at $68.53.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on CAVA shares. Morgan Stanley reduced their price target on shares of CAVA Group from $107.00 to $97.00 and set an "equal weight" rating on the stock in a research note on Wednesday, August 13th. KeyCorp dropped their price objective on shares of CAVA Group from $100.00 to $85.00 and set an "overweight" rating for the company in a report on Wednesday, August 13th. Cfra Research raised CAVA Group to a "strong-buy" rating in a research report on Thursday, August 14th. JPMorgan Chase & Co. lowered their target price on CAVA Group from $115.00 to $95.00 and set an "overweight" rating for the company in a research report on Wednesday, June 25th. Finally, Barclays lowered their target price on CAVA Group from $91.00 to $74.00 and set an "equal weight" rating for the company in a research report on Wednesday, August 13th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued 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 an average price target of $99.47.

CAVA Group Stock Performance

The firm's fifty day simple moving average is $81.98 and its 200-day simple moving average is $88.25. The stock has a market cap of $7.62 billion, a P/E ratio of 55.17, a price-to-earnings-growth ratio of 3.43 and a beta of 2.65.

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

Insider Buying and Selling

In other news, insider Theodoros Xenohristos sold 3,062 shares of CAVA Group stock in a transaction on Monday, June 16th. The shares were sold at an average price of $75.16, for a total value of $230,139.92. Following the completion of the sale, the insider owned 350,209 shares in the company, valued at $26,321,708.44. The trade was a 0.87% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Jennifer Somers sold 2,861 shares of CAVA Group stock in a transaction on Monday, June 16th. The shares were sold at an average price of $75.16, for a total transaction of $215,032.76. Following the completion of the sale, the insider owned 137,048 shares of the company's stock, valued at $10,300,527.68. This represents a 2.04% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 48,360 shares of company stock worth $3,634,738 over the last ninety days. 12.10% of the stock is owned by company insiders.

Institutional Trading of CAVA Group

Several large investors have recently made changes to their positions in CAVA. Envestnet Asset Management Inc. grew its stake in shares of CAVA Group by 20.8% in the 4th quarter. Envestnet Asset Management Inc. now owns 10,871 shares of the company's stock valued at $1,226,000 after buying an additional 1,874 shares during the period. Dimensional Fund Advisors LP increased its stake in CAVA Group by 43.2% during the 4th quarter. Dimensional Fund Advisors LP now owns 239,561 shares of the company's stock valued at $27,019,000 after purchasing an additional 72,288 shares in the last quarter. Stifel Financial Corp increased its stake in CAVA Group by 17.0% during the 4th quarter. Stifel Financial Corp now owns 67,166 shares of the company's stock valued at $7,576,000 after purchasing an additional 9,771 shares in the last quarter. Hsbc Holdings PLC bought a new stake in CAVA Group during the 4th quarter valued at $2,047,000. Finally, Integrated Wealth Concepts LLC increased its stake in CAVA Group by 4.5% during the 4th quarter. Integrated Wealth Concepts LLC now owns 6,678 shares of the company's stock valued at $753,000 after purchasing an additional 288 shares in the last quarter. 73.15% of the stock is currently owned by institutional investors and hedge funds.

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.

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