CAVA Group, Inc. (NYSE:CAVA) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Analyst sentiment is moderately bullish: Twenty-seven firms give CAVA Group an average “Moderate Buy” rating, with 16 buys, 10 holds and one strong buy. The average 12-month price target is $88.64.
• Recent operating results exceeded expectations: CAVA reported quarterly EPS of $0.19 versus the $0.18 consensus and revenue of $368.44 million, up 31.3% year over year and above estimates.
• The company authorized a $100 million share buyback: The program allows CAVA to repurchase up to 1.7% of its outstanding shares, while an insider also bought 6,500 shares at an average price of $66.52.

Shares of CAVA Group, Inc. (NYSE:CAVA - Get Free Report) have earned an average rating of "Moderate Buy" from the twenty-seven research firms that are presently covering the company, Marketbeat.com reports. Ten research analysts have rated the stock with a hold rating, sixteen have given a buy rating and one has issued a strong buy rating on the company. The average 1-year price target among analysts that have issued a report on the stock in the last year is $88.64.

CAVA has been the topic of several research analyst reports. KeyCorp dropped their price objective on shares of CAVA Group from $110.00 to $95.00 and set an "overweight" rating on the stock in a research report on Wednesday, August 12th. JPMorgan Chase & Co. decreased their price target on shares of CAVA Group from $85.00 to $80.00 and set an "overweight" rating on the stock in a research note on Friday, September 18th. Citigroup reissued a "buy" rating on shares of CAVA Group in a report on Tuesday, July 28th. Weiss Ratings downgraded shares of CAVA Group from a "hold (c)" rating to a "hold (c-)" rating in a research report on Friday, July 24th. Finally, Compass Point upgraded CAVA Group to a "neutral" rating in a report on Monday, September 14th.

CAVA Group Trading Down 3.5%

CAVA stock opened at $51.62 on Friday. CAVA Group has a 1-year low of $43.41 and a 1-year high of $98.79. The business's 50 day simple moving average is $62.34 and its 200 day simple moving average is $75.00. The firm has a market capitalization of $6.03 billion, a PE ratio of 93.85, a PEG ratio of 4.01 and a beta of 1.74.

CAVA Group (NYSE:CAVA - Get Free Report) last announced its quarterly earnings results on Tuesday, August 11th. The company reported $0.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.18 by $0.01. CAVA Group had a return on equity of 8.28% and a net margin of 4.82%.The business had revenue of $368.44 million during the quarter, compared to the consensus estimate of $360.09 million. During the same quarter last year, the firm posted $0.16 EPS. The company's quarterly revenue was up 31.3% on a year-over-year basis. As a group, sell-side analysts predict that CAVA Group will post 0.55 EPS for the current fiscal year.

CAVA Group declared that its Board of Directors has authorized a share buyback program on Friday, September 18th that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the company to buy up to 1.7% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's management believes its shares are undervalued.

Insiders Place Their Bets

In other news, insider Douglas Thompson purchased 6,500 shares of the company's stock in a transaction that occurred on Monday, August 31st. The stock was acquired at an average cost of $66.52 per share, with a total value of $432,380.00. Following the acquisition, the insider owned 19,371 shares in the company, valued at approximately $1,288,558.92. This trade represents a 50.50% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 6.70% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in CAVA. Ancora Advisors LLC acquired a new stake in shares of CAVA Group during the second quarter worth $27,000. FNY Investment Advisers LLC acquired a new position in shares of CAVA Group in the second quarter valued at about $31,000. Philadelphia Investment Partners LLC bought a new position in CAVA Group during the second quarter worth about $33,000. EverSource Wealth Advisors LLC increased its position in CAVA Group by 115.7% during the fourth quarter. EverSource Wealth Advisors LLC now owns 647 shares of the company's stock worth $38,000 after acquiring an additional 347 shares during the period. Finally, Scarborough Advisors LLC acquired a new stake in CAVA Group in the 1st quarter worth about $54,000. Institutional investors own 73.15% of the company's stock.

About CAVA Group

CAVA Group, Inc is a U.S.-based restaurant company that operates the CAVA fast-casual Mediterranean restaurant brand. Its restaurants offer customizable meals, including grain bowls, salads, pitas, dips, spreads and sides made with Mediterranean-inspired ingredients and flavors. Customers can order meals in restaurants, through digital channels and for catering.

The company's menu is centered on a build-your-own format, allowing guests to select proteins, grains, greens, toppings, sauces and dips.

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