Kercheville Advisors LLC Makes New Investment in CAVA Group, Inc. $CAVA

Key Points

• Kercheville Advisors LLC opened a new position in CAVA in Q4, buying 27,600 shares worth about $1.62 million, while large institutional buys (e.g., AllianceBernstein, Liontrust) leave 73.15% of shares held by hedge funds and other institutions.
• Analyst sentiment is broadly positive with a consensus rating of Moderate Buy and an average price target of $88.70, supported by recent upgrades from firms including Roth MKM, Morgan Stanley and TD Cowen.
• CAVA slightly beat quarterly estimates with EPS of $0.04 vs. $0.03 and revenue of $274.99M (up 20.9% YoY), though the stock trades at a high valuation (PE ~176.96) and insiders have reduced holdings via recent sales.

Kercheville Advisors LLC acquired a new position in shares of CAVA Group, Inc. (NYSE:CAVA - Free Report) during the 4th quarter, according to its most recent 13F filing with the SEC. The fund acquired 27,600 shares of the company's stock, valued at approximately $1,620,000.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Liontrust Investment Partners LLP bought a new stake in shares of CAVA Group in the 3rd quarter valued at approximately $43,189,000. Leibman Financial Services Inc. increased its holdings in shares of CAVA Group by 162.9% in the 4th quarter. Leibman Financial Services Inc. now owns 67,324 shares of the company's stock valued at $3,951,000 after acquiring an additional 41,712 shares during the last quarter. Alliancebernstein L.P. increased its holdings in shares of CAVA Group by 118.3% in the 3rd quarter. Alliancebernstein L.P. now owns 2,953,688 shares of the company's stock valued at $178,432,000 after acquiring an additional 1,600,630 shares during the last quarter. Renaissance Capital LLC increased its holdings in shares of CAVA Group by 42.7% in the 3rd quarter. Renaissance Capital LLC now owns 105,730 shares of the company's stock valued at $6,387,000 after acquiring an additional 31,651 shares during the last quarter. Finally, Envestnet Asset Management Inc. increased its holdings in shares of CAVA Group by 57.7% in the 3rd quarter. Envestnet Asset Management Inc. now owns 222,499 shares of the company's stock valued at $13,441,000 after acquiring an additional 81,393 shares during the last quarter. 73.15% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting CAVA Group

Here are the key news stories impacting CAVA Group this week:

• Positive Sentiment: Northcoast Research upgraded CAVA, signaling improved analyst conviction around the company’s growth trajectory and supporting near-term buying interest. Read More.
• Positive Sentiment: Morgan Stanley published a bullish forecast calling for strong price appreciation, which can attract momentum investors and institutional flows. Read More.
• Positive Sentiment: Roth Capital said the recent rally is likely to extend, reinforcing the narrative of continued upside and helping sustain buying pressure. Read More.
• Positive Sentiment: Zacks highlighted CAVA as one of several restaurant stocks with strong earnings surprise potential—citations point to demand, pricing power, digital growth and expansion as drivers despite margin pressures. Read More. | Read More.
• Positive Sentiment: CAVA announced a board refresh and launched a salmon menu item—corporate governance changes plus menu innovation support execution and top-line diversification. Read More.
• Neutral Sentiment: Coverage and commentary about CAVA’s valuation and its impact on broader NYSE buzz are keeping the name in market conversations; this drives attention but is mixed for valuation-sensitive investors. Read More.
• Neutral Sentiment: Morning quote pages and general market commentary (e.g., Fox Business quote) are circulating, providing liquidity and visibility but no new fundamental catalysts. Read More.
• Negative Sentiment: JPMorgan raised its price target to $90 and kept an "overweight" rating, but the new target sits below the current market price (implying potential downside from here), which may give some investors pause despite the upgrade. Read More. | Read More.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on CAVA shares. Roth Mkm began coverage on CAVA Group in a report on Tuesday. They issued a "buy" rating and a $106.00 price target for the company. Morgan Stanley upped their price objective on CAVA Group from $83.00 to $85.00 and gave the stock an "equal weight" rating in a research note on Tuesday. TD Cowen upped their price objective on CAVA Group from $90.00 to $100.00 and gave the stock a "buy" rating in a research note on Thursday, April 2nd. Barclays upped their price objective on CAVA Group from $52.00 to $70.00 and gave the stock an "equal weight" rating in a research note on Wednesday, January 7th. Finally, Johnson Rice set a $72.00 price objective on CAVA Group in a research note on Monday, January 5th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $88.70.

CAVA Group Stock Performance

Shares of CAVA stock opened at $95.56 on Friday. CAVA Group, Inc. has a 1 year low of $43.41 and a 1 year high of $101.50. The stock has a fifty day moving average of $82.20 and a two-hundred day moving average of $67.08. The firm has a market capitalization of $11.12 billion, a PE ratio of 176.96, a price-to-earnings-growth ratio of 7.71 and a beta of 2.03.

CAVA Group (NYSE:CAVA - Get Free Report) last announced its quarterly earnings results on Tuesday, February 24th. The company reported $0.04 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.03 by $0.01. CAVA Group had a return on equity of 8.43% and a net margin of 5.40%.The company had revenue of $274.99 million during the quarter, compared to analyst estimates of $268.04 million. During the same quarter in the previous year, the firm posted $0.05 EPS. The firm's quarterly revenue was up 20.9% on a year-over-year basis. Equities research analysts predict that CAVA Group, Inc. will post 0.51 earnings per share for the current fiscal year.

Insider Activity at CAVA Group

In other news, CEO Brett Schulman sold 4,542 shares of the company's stock in a transaction on Tuesday, January 27th. The stock was sold at an average price of $62.14, for a total value of $282,239.88. Following the completion of the sale, the chief executive officer owned 802,783 shares in the company, valued at $49,884,935.62. This represents a 0.56% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CFO Tricia K. Tolivar sold 2,404 shares of the company's stock in a transaction on Tuesday, January 27th. The shares were sold at an average price of $62.14, for a total value of $149,384.56. Following the completion of the sale, the chief financial officer owned 231,934 shares of the company's stock, valued at approximately $14,412,378.76. This trade represents a 1.03% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 11,460 shares of company stock worth $712,124 in the last ninety days. 6.80% of the stock is currently owned by corporate insiders.

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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