William Blair Investment Management LLC Purchases 530,524 Shares of CAVA Group, Inc. $CAVA

Key Points

• William Blair Investment Management increased its CAVA Group stake by 28.1% in the fourth quarter, buying 530,524 shares and bringing its total holding to 2,419,247 shares worth about $142 million.
• CAVA reported better-than-expected quarterly results, with EPS of $0.20 versus $0.17 expected and revenue of $438.27 million versus $360.89 million expected, while sales rose 32.1% year over year.
• Despite solid earnings and bullish analyst commentary, CAVA stock fell 1.1% and trades at a rich valuation, with analysts maintaining a consensus rating of “Moderate Buy” and a price target of $93.19.

William Blair Investment Management LLC raised its position in CAVA Group, Inc. (NYSE:CAVA - Free Report) by 28.1% during the fourth quarter, according to its most recent 13F filing with the SEC. The fund owned 2,419,247 shares of the company's stock after buying an additional 530,524 shares during the period. William Blair Investment Management LLC owned about 2.09% of CAVA Group worth $141,986,000 as of its most recent filing with the SEC.

A number of other hedge funds have also recently bought and sold shares of the company. Vanguard Group Inc. boosted its position in CAVA Group by 3.5% in the 3rd quarter. Vanguard Group Inc. now owns 9,345,976 shares of the company's stock valued at $564,590,000 after buying an additional 313,938 shares during the last quarter. Capital Research Global Investors boosted its position in CAVA Group by 28.5% in the 3rd quarter. Capital Research Global Investors now owns 6,634,866 shares of the company's stock valued at $400,801,000 after buying an additional 1,469,758 shares during the last quarter. Capital International Investors boosted its position in CAVA Group by 105.4% in the 3rd quarter. Capital International Investors now owns 4,228,736 shares of the company's stock valued at $255,451,000 after buying an additional 2,169,553 shares during the last quarter. Alliancebernstein L.P. boosted its position in 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 buying an additional 1,600,630 shares during the last quarter. Finally, State Street Corp boosted its position in CAVA Group by 5.0% in the 2nd quarter. State Street Corp now owns 2,543,335 shares of the company's stock valued at $214,225,000 after buying an additional 122,163 shares during the last quarter. 73.15% of the stock is currently owned by institutional investors.

Insider Buying and Selling at CAVA Group

In other CAVA Group news, insider Theodoros Xenohristos sold 9,044 shares of CAVA Group stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $79.75, for a total value of $721,259.00. Following the sale, the insider owned 327,882 shares of the company's stock, valued at $26,148,589.50. This trade represents a 2.68% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Kelly Costanza sold 10,010 shares of the firm's stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $79.87, for a total value of $799,498.70. Following the completion of the transaction, the insider owned 113,850 shares of the company's stock, valued at $9,093,199.50. The trade was a 8.08% 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 24,235 shares of company stock valued at $1,920,420 in the last 90 days. 6.70% of the stock is currently owned by company insiders.

CAVA Group Trading Down 1.1%

Shares of CAVA Group stock opened at $80.41 on Friday. The company has a market capitalization of $9.37 billion, a PE ratio of 154.63, a PEG ratio of 5.61 and a beta of 1.90. CAVA Group, Inc. has a 12 month low of $43.41 and a 12 month high of $98.79. The stock's fifty day simple moving average is $84.97 and its 200 day simple moving average is $69.73.

CAVA Group (NYSE:CAVA - Get Free Report) last issued its quarterly earnings data on Tuesday, May 19th. The company reported $0.20 EPS for the quarter, topping the consensus estimate of $0.17 by $0.03. CAVA Group had a return on equity of 7.92% and a net margin of 4.79%.The business had revenue of $438.27 million for the quarter, compared to the consensus estimate of $360.89 million. During the same quarter last year, the business posted $0.22 EPS. The firm's revenue was up 32.1% compared to the same quarter last year. Analysts predict that CAVA Group, Inc. will post 0.54 EPS for the current fiscal year.

Analyst Ratings Changes

A number of research analysts have commented on CAVA shares. UBS Group increased their price objective on CAVA Group from $75.00 to $85.00 and gave the company a "neutral" rating in a research report on Tuesday, May 12th. Northcoast Research upgraded CAVA Group to a "strong sell" rating in a research report on Tuesday, April 21st. DA Davidson raised their price target on CAVA Group from $80.00 to $84.00 and gave the stock a "neutral" rating in a research report on Thursday. Roth Mkm restated a "buy" rating and issued a $106.00 price target on shares of CAVA Group in a research report on Wednesday. Finally, Guggenheim began coverage on CAVA Group in a research report on Thursday, March 26th. They issued a "buy" rating and a $100.00 price target on the stock. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $93.19.

Trending Headlines about CAVA Group

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

• Positive Sentiment: Argus upgraded CAVA Group from hold to buy, reinforcing the optimistic post-earnings sentiment around the stock. Argus upgrade coverage
• Positive Sentiment: Analyst commentary continued to lean bullish, with Piper Sandler reaffirming a buy rating, Roth MKM reiterating buy, and TD Cowen maintaining a buy call. Piper Sandler coverage
• Positive Sentiment: Recent coverage highlighted strong Q1 results, including 9.7% same-restaurant sales growth and improved operating leverage, which supports the case for continued fundamental momentum. Seeking Alpha article
• Neutral Sentiment: DA Davidson raised its price target to $84 from $80 but kept a neutral rating, suggesting upside potential but also valuation caution. DA Davidson price target update
• Neutral Sentiment: Insider selling was disclosed by CAO Adam David Phillips and insider Kelly Costanza, though Costanza’s sale was tied to tax withholding on vesting equity awards, making the signal less negative than a discretionary sale. SEC filing

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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