Capstone Investment Advisors LLC Invests $7.02 Million in CAVA Group, Inc. $CAVA

Key Points

• Capstone Investment Advisors acquired 89,500 CAVA Group shares worth approximately $7.02 million, joining other major institutional investors. Hedge funds and institutions collectively own 73.15% of the stock.
• CAVA reported quarterly EPS of $0.19, beating estimates by $0.01, while revenue rose 31.3% year over year to $368.44 million. Analysts expect $0.54 in full-year EPS.
• CAVA shares opened at $66.80, below the analyst consensus price target of $89.44. The stock carries a “Moderate Buy” consensus rating, though insiders sold more than $6 million of shares over the past 90 days.

Capstone Investment Advisors LLC acquired a new stake in shares of CAVA Group, Inc. (NYSE:CAVA - Free Report) during the 2nd quarter, according to its most recent filing with the SEC. The institutional investor acquired 89,500 shares of the company's stock, valued at approximately $7,024,000. Capstone Investment Advisors LLC owned about 0.08% of CAVA Group at the end of the most recent quarter.

A number of other large investors also recently modified their holdings of the company. BlackRock Inc. bought a new position in CAVA Group during the second quarter valued at approximately $757,013,000. Capital Research Global Investors lifted its holdings in shares of CAVA Group by 27.2% in the 4th quarter. Capital Research Global Investors now owns 8,440,040 shares of the company's stock worth $495,344,000 after acquiring an additional 1,805,174 shares during the last quarter. Capital International Investors boosted its stake in shares of CAVA Group by 15.5% in the 4th quarter. Capital International Investors now owns 4,885,317 shares of the company's stock valued at $286,718,000 after purchasing an additional 656,581 shares in the last quarter. Morgan Stanley boosted its stake in shares of CAVA Group by 33.7% in the 4th quarter. Morgan Stanley now owns 3,318,894 shares of the company's stock valued at $194,786,000 after purchasing an additional 835,628 shares in the last quarter. Finally, State Street Corp grew its holdings in shares of CAVA Group by 1.3% during the 4th quarter. State Street Corp now owns 2,920,442 shares of the company's stock valued at $171,401,000 after purchasing an additional 36,508 shares during the last quarter. 73.15% of the stock is owned by hedge funds and other institutional investors.

CAVA Group Stock Down 1.4%

Shares of CAVA opened at $66.80 on Friday. The stock has a market capitalization of $7.80 billion, a P/E ratio of 121.46, a PEG ratio of 4.61 and a beta of 1.74. The firm has a fifty day simple moving average of $70.43 and a two-hundred day simple moving average of $77.40. CAVA Group, Inc. has a twelve month low of $43.41 and a twelve month high of $98.79.

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, 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 business had revenue of $368.44 million for the quarter, compared to analyst estimates of $360.09 million. During the same quarter last year, the firm earned $0.16 EPS. The company's revenue was up 31.3% on a year-over-year basis. Sell-side analysts expect that CAVA Group, Inc. will post 0.54 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Kelly Costanza sold 12,490 shares of the firm's stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $90.00, for a total value of $1,124,100.00. Following the sale, the insider directly owned 98,490 shares of the company's stock, valued at $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 available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Karen Kochevar sold 10,000 shares of the business's stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $90.00, for a total value of $900,000.00. Following the transaction, the director owned 3,074 shares in the company, valued at approximately $276,660. This represents a 76.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 67,512 shares of company stock valued at $6,050,417 over the last ninety days. Corporate insiders own 6.70% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on the stock. Wolfe Research lifted their target price on shares of CAVA Group from $79.00 to $82.00 and gave the stock an "outperform" rating in a research report on Wednesday, August 12th. Wall Street Zen raised CAVA Group from a "sell" rating to a "hold" rating in a research note on Sunday, May 24th. Freedom Capital upgraded CAVA Group to a "hold" rating in a report on Wednesday, July 1st. Barclays boosted their target price on CAVA Group from $70.00 to $74.00 and gave the company an "equal weight" rating in a research note on Wednesday, May 20th. Finally, Stifel Nicolaus increased their target price on CAVA Group from $90.00 to $105.00 and gave the company a "buy" rating in a report on Wednesday, May 20th. One research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and nine have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $89.44.

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.

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