Insider Selling: CAVA Group (NYSE:CAVA) Insider Sells 10,010 Shares of Stock

Key Points

• Insider sale: CAVA Group insider Kelly Costanza sold 10,010 shares at an average price of $79.87, totaling about $799,499. The sale reduced her holdings by 8.08% and was made to cover tax withholding tied to vested equity awards.
• Strong quarterly results: CAVA recently reported quarterly EPS of $0.20, beating estimates of $0.17, while revenue rose 32.1% year over year to $438.27 million. The company also posted better-than-expected profitability metrics, including a 4.79% net margin.
• Analyst sentiment remains constructive: Several firms have raised price targets or maintained bullish views, and MarketBeat data shows an average rating of Moderate Buy with a consensus price target of $93.19. However, some analysts still note the stock’s elevated valuation.

CAVA Group, Inc. (NYSE:CAVA - Get Free Report) insider Kelly Costanza sold 10,010 shares of the business's stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $79.87, for a total transaction of $799,498.70. Following the transaction, the insider owned 113,850 shares in the company, valued at approximately $9,093,199.50. This trade represents a 8.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

CAVA Group Stock Performance

CAVA traded down $0.86 during trading on Friday, reaching $80.41. The company's stock had a trading volume of 2,124,849 shares, compared to its average volume of 3,456,897. The company's fifty day moving average price is $84.98 and its 200-day moving average price is $69.65. CAVA Group, Inc. has a 52-week low of $43.41 and a 52-week high of $98.79. The company has a market capitalization of $9.36 billion, a price-to-earnings ratio of 154.63, a price-to-earnings-growth ratio of 5.57 and a beta of 1.90.

CAVA Group (NYSE:CAVA - Get Free Report) last posted its quarterly earnings results on Tuesday, May 19th. The company reported $0.20 EPS for the quarter, beating 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 during the quarter, compared to analysts' expectations of $360.89 million. During the same period last year, the firm earned $0.22 EPS. The company's quarterly revenue was up 32.1% compared to the same quarter last year. Equities analysts predict that CAVA Group, Inc. will post 0.53 earnings per share for the current year.

Hedge Funds Weigh In On CAVA Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. DMC Group LLC raised its position in shares of CAVA Group by 3.7% during the 4th quarter. DMC Group LLC now owns 4,426 shares of the company's stock worth $260,000 after purchasing an additional 157 shares during the last quarter. Modern Wealth Management LLC increased its position in CAVA Group by 4.2% during the 1st quarter. Modern Wealth Management LLC now owns 3,907 shares of the company's stock worth $313,000 after purchasing an additional 158 shares in the last quarter. Bridgewater Associates LP grew its holdings in shares of CAVA Group by 2.4% during the fourth quarter. Bridgewater Associates LP now owns 6,827 shares of the company's stock worth $401,000 after buying an additional 163 shares in the last quarter. Western Pacific Wealth Management LP grew its stake in CAVA Group by 32.5% in the 4th quarter. Western Pacific Wealth Management LP now owns 729 shares of the company's stock worth $43,000 after acquiring an additional 179 shares during the period. Finally, Envestnet Portfolio Solutions Inc. lifted its stake in shares of CAVA Group by 6.0% during the 3rd quarter. Envestnet Portfolio Solutions Inc. now owns 3,852 shares of the company's stock worth $233,000 after purchasing an additional 219 shares during the period. Institutional investors and hedge funds own 73.15% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on CAVA. Mizuho upped their price target on shares of CAVA Group from $72.00 to $80.00 and gave the stock a "neutral" rating in a research note on Thursday, April 2nd. Benchmark raised their price objective on shares of CAVA Group from $80.00 to $110.00 and gave the company a "buy" rating in a research note on Monday, April 20th. The Goldman Sachs Group boosted their price objective on shares of CAVA Group from $75.00 to $86.00 and gave the stock a "neutral" rating in a report on Monday, April 13th. BNP Paribas Exane began coverage on shares of CAVA Group in a report on Monday, March 30th. They issued a "neutral" rating and a $91.00 target price for the company. Finally, Piper Sandler lifted their price target on shares of CAVA Group from $85.00 to $92.00 and gave the company an "overweight" rating in a research report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $93.19.

More CAVA Group News

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

• Positive Sentiment: Argus upgraded CAVA Group from hold to buy, adding to the constructive analyst sentiment around the stock. Benzinga
• Positive Sentiment: Several firms reiterated or initiated bullish views, including Piper Sandler, Roth MKM, and TD Cowen, while DA Davidson raised its price target to $84, suggesting continued confidence in CAVA’s growth outlook. Article
• Positive Sentiment: Recent coverage highlighted strong Q1 performance, including revenue growth, traffic gains, and same-store sales momentum, along with raised guidance after earnings. Article
• Positive Sentiment: Commentary noted that CAVA posted solid operating leverage, with operating income and restaurant-level margins improving, reinforcing the company’s growth story. Article
• Neutral Sentiment: Some analysis praised the strong quarter but argued the stock’s valuation remains stretched at roughly 150x earnings, which may be tempering enthusiasm even after the earnings beat. Article

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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