CAVA Group Target of Unusually Large Options Trading (NYSE:CAVA)

Key Points

• Unusually heavy put-option activity: Traders bought 21,885 CAVA put options, roughly 106% above the stock’s typical daily put volume.
• Shares fell sharply: CAVA dropped 8.9% to $50.01, well below its 50-day and 200-day moving averages. The company nevertheless reported quarterly revenue of $368.44 million, up 31.3% year over year, and earnings that slightly exceeded estimates.
• Analysts remain moderately bullish: CAVA has a “Moderate Buy” consensus rating and an average price target of $89.44, despite several recent target-price cuts. Insider activity was mixed, with one executive selling shares to cover tax obligations and another increasing their position.

CAVA Group, Inc. (NYSE:CAVA - Get Free Report) was the target of unusually large options trading on Tuesday. Stock traders acquired 21,885 put options on the company. This represents an increase of approximately 106% compared to the typical daily volume of 10,642 put options.

Insider Activity

In other CAVA Group news, insider Kelly Costanza sold 12,490 shares of the firm's stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $90.00, for a total transaction 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Douglas Thompson purchased 6,500 shares of the business's stock in a transaction that occurred on Monday, August 31st. The stock was acquired at an average price of $66.52 per share, for a total transaction of $432,380.00. Following the acquisition, the insider directly owned 19,371 shares of the company's stock, valued at $1,288,558.92. This trade represents a 50.50% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 6.70% of the company's stock.

Institutional Trading of CAVA Group

A number of large investors have recently made changes to their positions in the stock. Engineers Gate Manager LP purchased a new position in shares of CAVA Group in the second quarter valued at $670,000. NewEdge Advisors LLC grew its stake in CAVA Group by 5.3% in the 2nd quarter. NewEdge Advisors LLC now owns 13,050 shares of the company's stock valued at $1,024,000 after buying an additional 656 shares during the last quarter. Nykredit A S bought a new position in CAVA Group in the 2nd quarter worth approximately $272,000. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in CAVA Group during the second quarter valued at about $1,711,000. Finally, Ameritas Advisory Services LLC acquired a new stake in shares of CAVA Group in the 2nd quarter valued at $2,492,000. Institutional investors and hedge funds own 73.15% of the company's stock.

Wall Street Analyst Weigh In

CAVA has been the topic of several research analyst reports. Mizuho decreased their target price on CAVA Group from $85.00 to $70.00 and set a "neutral" rating on the stock in a report on Wednesday, August 12th. Sanford C. Bernstein reissued an "outperform" rating on shares of CAVA Group in a report on Wednesday, August 12th. BMO Capital Markets set a $100.00 target price on shares of CAVA Group in a research note on Wednesday, May 20th. KeyCorp dropped their price target on shares of CAVA Group from $110.00 to $95.00 and set an "overweight" rating on the stock in a research report on Wednesday, August 12th. Finally, DA Davidson decreased their price objective on CAVA Group from $84.00 to $75.00 and set a "neutral" rating on the stock in a research note on Thursday, August 13th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $89.44.

CAVA Group Stock Down 8.9%

CAVA Group stock traded down $4.88 during midday trading on Tuesday, reaching $50.01. 3,351,277 shares of the stock traded hands, compared to its average volume of 3,334,663. CAVA Group has a 12 month low of $43.41 and a 12 month high of $98.79. The stock has a market cap of $5.84 billion, a P/E ratio of 90.94, a PEG ratio of 4.34 and a beta of 1.74. The stock's fifty day moving average is $65.58 and its 200-day moving average is $76.79.

CAVA Group (NYSE:CAVA - Get Free Report) last announced its earnings results on Tuesday, August 11th. The company reported $0.19 earnings per share for the quarter, beating the consensus estimate of $0.18 by $0.01. CAVA Group had a net margin of 4.82% and a return on equity of 8.28%. The company had revenue of $368.44 million during the quarter, compared to the consensus estimate of $360.09 million. During the same period last year, the firm earned $0.16 earnings per share. CAVA Group's revenue was up 31.3% compared to the same quarter last year. On average, equities analysts predict that CAVA Group will post 0.55 EPS for the current fiscal year.

About CAVA Group

CAVA Group, Inc is a U.S.-based restaurant company that operates the CAVA fast-casual Mediterranean restaurant brand. Its restaurants offer customizable meals, including grain bowls, salads, pitas, dips, spreads and sides made with Mediterranean-inspired ingredients and flavors. Customers can order meals in restaurants, through digital channels and for catering.

The company's menu is centered on a build-your-own format, allowing guests to select proteins, grains, greens, toppings, sauces and dips.

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