CAVA Group (NYSE:CAVA) Shares Down 6.1% - What's Next?

Key Points

• CAVA shares fell 6.1% to approximately $69.87 in Monday trading, below both the 50-day moving average of $73.07 and the 200-day average of $76.95.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and an average price target of $89.44, despite DA Davidson lowering its target to $75.
• CAVA recently exceeded quarterly expectations, reporting $0.19 in EPS and $368.44 million in revenue, up 31.3% year over year; however, the stock carries a high PE ratio of 130.46.

Shares of CAVA Group, Inc. (NYSE:CAVA - Get Free Report) dropped 6.1% during mid-day trading on Monday . The stock traded as low as $70.20 and last traded at $69.8730. Approximately 346,272 shares were traded during trading, a decline of 90% from the average daily volume of 3,418,403 shares. The stock had previously closed at $74.42.

Analysts Set New Price Targets

Several analysts have recently weighed in on CAVA shares. DA Davidson cut their price objective on CAVA Group from $84.00 to $75.00 and set a "neutral" rating for the company in a report on Thursday. Citigroup reiterated a "buy" rating on shares of CAVA Group in a research report on Tuesday, July 28th. Telsey Advisory Group upped their price target on shares of CAVA Group from $92.00 to $95.00 and gave the company an "outperform" rating in a report on Wednesday, May 20th. Morgan Stanley upgraded shares of CAVA Group from an "equal weight" rating to an "overweight" rating and raised their price objective for the company from $86.00 to $90.00 in a research report on Wednesday, July 15th. Finally, Benchmark lifted their price objective on shares of CAVA Group from $80.00 to $110.00 and gave the stock a "buy" rating in a research note on Monday, April 20th. Seventeen research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $89.44.

CAVA Group Stock Performance

The stock has a 50 day moving average of $73.07 and a two-hundred day moving average of $76.95. The stock has a market cap of $8.39 billion, a PE ratio of 130.46, a PEG ratio of 5.12 and a beta of 1.75.

CAVA Group (NYSE:CAVA - Get Free Report) last issued its earnings results on Tuesday, August 11th. The company reported $0.19 EPS for the quarter, topping the consensus estimate of $0.18 by $0.01. The business had revenue of $368.44 million during the quarter, compared to analysts' expectations of $360.09 million. CAVA Group had a return on equity of 8.28% and a net margin of 4.82%.CAVA Group's revenue was up 31.3% compared to the same quarter last year. During the same quarter last year, the firm posted $0.16 earnings per share. Analysts expect that CAVA Group, Inc. will post 0.53 EPS for the current fiscal year.

Insider Buying and Selling at CAVA Group

In related news, insider Kelly Costanza sold 12,490 shares of CAVA Group stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $90.00, for a total transaction of $1,124,100.00. Following the completion of the sale, the insider owned 98,490 shares of the company's stock, valued at approximately $8,864,100. This trade represents a 11.25% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Adam David Phillips sold 757 shares of the company's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $89.43, for a total value of $67,698.51. Following the completion of the transaction, the chief accounting officer directly owned 6,848 shares in the company, valued at approximately $612,416.64. The trade was a 9.95% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 82,703 shares of company stock valued at $7,249,579 in the last quarter. Corporate insiders own 6.70% of the company's stock.

Institutional Investors Weigh In On CAVA Group

Institutional investors and hedge funds have recently modified their holdings of the business. Oppenheimer Asset Management Inc. acquired a new stake in shares of CAVA Group in the 2nd quarter valued at $1,551,000. Prospect Financial Services LLC acquired a new position in CAVA Group in the second quarter valued at about $1,348,000. KBC Group NV grew its stake in CAVA Group by 513.6% during the fourth quarter. KBC Group NV now owns 15,531 shares of the company's stock worth $912,000 after buying an additional 13,000 shares during the last quarter. Prime Capital Management Co Ltd raised its stake in shares of CAVA Group by 90.6% in the fourth quarter. Prime Capital Management Co Ltd now owns 1,031,630 shares of the company's stock valued at $60,546,000 after acquiring an additional 490,300 shares during the last quarter. Finally, Norges Bank acquired a new position in shares of CAVA Group in the 4th quarter worth approximately $50,278,000. Institutional investors and hedge funds own 73.15% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source