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

Key Points

• Analysts rate CAVA “Moderate Buy”: Of 26 analysts, 16 recommend buying, nine rate it a hold, and one gives a strong-buy rating. The average 12-month price target is $89.44.
• Recent performance exceeded expectations: CAVA reported quarterly earnings of $0.19 per share versus the $0.18 consensus estimate, while revenue rose 31.3% year over year to $368.44 million.
• The stock has declined 7% and remains highly valued: Shares opened at $61.13, compared with a 52-week high of $98.79, and trade at a P/E ratio above 111. Institutional investors own 73.15% of the company, while insiders have sold 67,512 shares worth about $6.05 million over the past 90 days.

Shares of CAVA Group, Inc. (NYSE:CAVA - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the twenty-six analysts that are covering the firm, Marketbeat.com reports. Nine equities research analysts have rated the stock with a hold rating, sixteen have issued a buy rating and one has assigned a strong buy rating to the company. The average 12 month target price among brokers that have updated their coverage on the stock in the last year is $89.44.

Several equities research analysts recently commented on the stock. Weiss Ratings lowered shares of CAVA Group from a "hold (c)" rating to a "hold (c-)" rating in a research note on Friday, July 24th. KeyCorp decreased their price objective on shares of CAVA Group from $110.00 to $95.00 and set an "overweight" rating for the company in a research note on Wednesday, August 12th. Wall Street Zen upgraded shares of CAVA Group from a "sell" rating to a "hold" rating in a research note on Sunday, May 24th. Robert W. Baird raised CAVA Group to a "strong-buy" rating in a report on Monday, August 24th. Finally, Royal Bank Of Canada lifted their target price on CAVA Group from $90.00 to $95.00 and gave the stock an "outperform" rating in a research report on Wednesday, August 12th.

Insider Activity

In related news, Director Karen Kochevar sold 10,000 shares of the firm's stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $90.00, for a total transaction of $900,000.00. Following the transaction, the director owned 3,074 shares in the company, valued at $276,660. This trade represents a 76.49% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Theodoros Xenohristos sold 3,252 shares of CAVA Group stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $89.43, for a total value of $290,826.36. Following the transaction, the insider directly owned 324,630 shares in the company, valued at approximately $29,031,660.90. This trade represents a 0.99% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 67,512 shares of company stock worth $6,050,417 over the last ninety days. 6.70% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On CAVA Group

A number of institutional investors have recently modified their holdings of the business. BlackRock Inc. acquired a new stake in CAVA Group during the 2nd quarter worth $757,013,000. California State Teachers Retirement System increased its stake in CAVA Group by 7,511.4% in the second quarter. California State Teachers Retirement System now owns 8,436,678 shares of the company's stock valued at $662,110,000 after purchasing an additional 8,325,836 shares during the period. Capital Research Global Investors increased its stake in CAVA Group by 27.2% in the fourth quarter. Capital Research Global Investors now owns 8,440,040 shares of the company's stock valued at $495,344,000 after purchasing an additional 1,805,174 shares during the period. Marshall Wace LLP increased its stake in CAVA Group by 689.8% in the fourth quarter. Marshall Wace LLP now owns 1,387,774 shares of the company's stock valued at $81,448,000 after purchasing an additional 1,212,068 shares during the period. Finally, Primecap Management Co. CA purchased a new stake in shares of CAVA Group in the second quarter valued at about $92,956,000. 73.15% of the stock is owned by institutional investors and hedge funds.

CAVA Group Stock Down 7.0%

Shares of CAVA Group stock opened at $61.13 on Wednesday. The firm has a market capitalization of $7.14 billion, a P/E ratio of 111.15, a P/E/G ratio of 5.16 and a beta of 1.74. CAVA Group has a 52 week low of $43.41 and a 52 week high of $98.79. The firm's 50 day moving average is $69.35 and its two-hundred day moving average is $77.29.

CAVA Group (NYSE:CAVA - Get Free Report) last released its quarterly earnings data on Tuesday, August 11th. The company reported $0.19 earnings per share for the quarter, topping analysts' consensus estimates of $0.18 by $0.01. CAVA Group had a net margin of 4.82% and a return on equity of 8.28%. The company had revenue of $368.44 million for the quarter, compared to analysts' expectations of $360.09 million. During the same quarter last year, the company earned $0.16 earnings per share. The firm's revenue for the quarter was up 31.3% on a year-over-year basis. As a group, research analysts expect that CAVA Group will post 0.54 earnings per share for the current fiscal year.

About CAVA Group

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.

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