CAVA Group, Inc. (NYSE:CAVA) Stock Now Rated "Moderate Buy" by Wall Street Analysts

Key Points

• Wall Street maintains a Moderate Buy consensus on CAVA, with 17 buy ratings, 10 holds and one strong buy among 28 analysts. The average 12-month price target is $88.62 versus a recent share price of $54.89.
• CAVA reported quarterly revenue of $368.44 million, up 31.3% year over year, and adjusted expectations with EPS of $0.19, beating consensus by $0.01.
• The company authorized a $100 million stock repurchase program, while institutional investors own 73.15% of shares and an insider recently increased his stake by purchasing 6,500 shares.

CAVA Group, Inc. (NYSE:CAVA - Get Free Report) has been assigned an average rating of "Moderate Buy" from the twenty-eight brokerages that are covering the company, MarketBeat Ratings reports. Ten analysts have rated the stock with a hold recommendation, seventeen have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 1-year target price among brokers that have issued ratings on the stock in the last year is $88.62.

A number of brokerages recently commented on CAVA. Sanford C. Bernstein restated an "outperform" rating on shares of CAVA Group in a research report on Wednesday, August 12th. Wolfe Research raised their price objective on CAVA Group from $79.00 to $82.00 and gave the company an "outperform" rating in a research note on Wednesday, August 12th. KeyCorp lowered their target price on shares of CAVA Group from $110.00 to $95.00 and set an "overweight" rating for the company in a report on Wednesday, August 12th. Seaport Research Partners assumed coverage on CAVA Group in a research note on Wednesday, September 16th. They issued a "buy" rating and a $58.00 price objective on the stock. Finally, JPMorgan Chase & Co. decreased their price objective on CAVA Group from $85.00 to $80.00 and set an "overweight" rating on the stock in a research note on Friday, September 18th.

Insiders Place Their Bets

In other news, insider Douglas Thompson bought 6,500 shares of the business's stock in a transaction on Monday, August 31st. The stock was acquired at an average price of $66.52 per share, with a total value of $432,380.00. Following the completion of the purchase, the insider directly owned 19,371 shares in the company, valued at $1,288,558.92. This represents a 50.50% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. 6.70% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of CAVA. BlackRock Inc. purchased a new position in shares of CAVA Group in the 2nd quarter valued at approximately $757,013,000. Wellington Management Group LLP raised its holdings in CAVA Group by 76.9% during the second quarter. Wellington Management Group LLP now owns 1,605,508 shares of the company's stock valued at $126,000,000 after acquiring an additional 697,699 shares during the period. Primecap Management Co. CA purchased a new stake in CAVA Group in the 2nd quarter worth $92,956,000. William Blair Investment Management LLC purchased a new position in shares of CAVA Group in the 2nd quarter worth $89,861,000. Finally, Prime Capital Management Co Ltd bought a new stake in CAVA Group in the second quarter worth $80,962,000. Institutional investors own 73.15% of the company's stock.

CAVA Group Stock Down 4.5%

Shares of CAVA opened at $54.89 on Thursday. CAVA Group has a twelve month low of $43.41 and a twelve month high of $98.79. The stock has a market capitalization of $6.41 billion, a P/E ratio of 99.80, a P/E/G ratio of 4.45 and a beta of 1.80. The company has a 50 day moving average of $58.79 and a 200-day moving average of $71.35.

CAVA Group (NYSE:CAVA - Get Free Report) last released its quarterly earnings data on Tuesday, August 11th. The company reported $0.19 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 company had revenue of $368.44 million during the quarter, compared to the consensus estimate of $360.09 million. During the same quarter in the prior year, the firm posted $0.16 EPS. The firm's revenue for the quarter was up 31.3% compared to the same quarter last year. On average, sell-side analysts anticipate that CAVA Group will post 0.55 earnings per share for the current fiscal year.

CAVA Group declared that its Board of Directors has initiated a stock repurchase program on Friday, September 18th that authorizes the company to repurchase $100.00 million in shares. This repurchase authorization authorizes the company to repurchase up to 1.7% of its shares through open market purchases. Stock repurchase programs are generally a sign that the company's leadership believes its stock is undervalued.

CAVA Group Company Profile

CAVA Group, Inc operates CAVA, a fast-casual restaurant brand serving Mediterranean-inspired food in the United States. Its menu includes customizable bowls and pitas, salads, dips, spreads, grilled proteins, and other Mediterranean dishes, with options designed to accommodate a range of dietary preferences.

The company's restaurants generally use an assembly-line format that allows customers to build meals from a selection of ingredients and sauces. CAVA also offers its branded dips, spreads, and other products through select grocery and retail channels, extending the brand beyond its restaurant locations.

CAVA was founded in 2010 by Dimitri Moshovitis, Ike Grigoropoulos, and Ted Xenohristos.

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