CAVA Group (NYSE:CAVA) Share Price Breaks Above 50 Day Moving Average - Time to Sell?

Key Points

• CAVA shares rose 9.1% and traded above their 50-day moving average, reaching $59.82 versus the $56.93 average. The stock remains below its 200-day moving average of $71.40.
• Analyst sentiment is generally positive, with a “Moderate Buy” consensus and an average price target of $87.35, although some firms recently lowered their targets, including TD Cowen to $78 and Citigroup to $66.
• CAVA reported quarterly revenue of $368.44 million, up 31.3% year over year, and EPS of $0.19, slightly exceeding estimates. The company also authorized a $100 million share buyback, while an insider purchased 6,500 shares.

CAVA Group, Inc. (NYSE:CAVA - Get Free Report) crossed above its 50 day moving average during trading on Thursday. The stock has a 50 day moving average of $56.93 and traded as high as $59.82. CAVA Group shares last traded at $59.2080, with a volume of 3,462,590 shares changing hands.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on CAVA shares. TD Cowen cut their price target on CAVA Group from $85.00 to $78.00 and set a "buy" rating on the stock in a report on Wednesday, October 21st. Robert W. Baird raised CAVA Group to a "strong-buy" rating in a research report on Monday, August 24th. Melius Research upgraded CAVA Group from a "hold" rating to a "buy" rating and set a $95.00 price objective for the company in a research note on Thursday, October 8th. Citigroup dropped their price objective on CAVA Group from $79.00 to $66.00 and set a "neutral" rating on the stock in a research report on Thursday, October 22nd. Finally, Weiss Ratings raised CAVA Group from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat, CAVA Group presently has an average rating of "Moderate Buy" and an average target price of $87.35.

CAVA Group Stock Up 9.1%

The company has a market capitalization of $6.92 billion, a price-to-earnings ratio of 107.65, a P/E/G ratio of 4.32 and a beta of 1.80. The company's 50 day simple moving average is $56.93 and its two-hundred day simple moving average is $71.40.

CAVA Group (NYSE:CAVA - Get Free Report) last issued 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 return on equity of 8.28% and a net margin of 4.82%. The business had revenue of $368.44 million for the quarter, compared to the consensus estimate of $360.09 million. During the same period in the prior year, the firm posted $0.16 earnings per share. The business's quarterly revenue was up 31.3% on a year-over-year basis. Analysts anticipate that CAVA Group, Inc. will post 0.55 EPS for the current year.

CAVA Group announced that its board has authorized a share buyback program on Friday, September 18th that allows the company to repurchase $100 million in outstanding shares. This repurchase authorization allows the company to repurchase up to 1.7% of its stock through open market purchases. Share repurchase programs are usually a sign that the company's board believes its shares are undervalued.

Insiders Place Their Bets

In other CAVA Group news, insider Douglas Thompson bought 6,500 shares of CAVA Group stock in a transaction that occurred on Monday, August 31st. The shares were bought at an average cost of $66.52 per share, with a total value of $432,380.00. Following the transaction, the insider directly owned 19,371 shares of the company's stock, valued at approximately $1,288,558.92. This represents a 50.50% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 6.70% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On CAVA Group

Institutional investors have recently added to or reduced their stakes in the business. Trillium Asset Management LLC purchased a new position in CAVA Group in the 2nd quarter worth $3,279,000. Oppenheimer Asset Management Inc. acquired a new stake in CAVA Group during the 2nd quarter worth about $1,551,000. Prospect Financial Services LLC purchased a new stake in CAVA Group during the 2nd quarter valued at about $1,348,000. Connor Clark & Lunn Investment Management Ltd. purchased a new stake in CAVA Group during the 2nd quarter valued at about $6,833,000. Finally, Ameritas Advisory Services LLC purchased a new stake in CAVA Group during the 2nd quarter valued at about $2,492,000. Institutional investors and hedge funds own 73.15% of the company's stock.

About CAVA Group

CAVA Group, Inc operates CAVA, a fast-casual restaurant brand serving Mediterranean-inspired food in the United States. Its menu includes customizable bowls and pitas, salads, dips, spreads, grilled proteins, and other Mediterranean dishes, with options designed to accommodate a range of dietary preferences.

The company's restaurants generally use an assembly-line format that allows customers to build meals from a selection of ingredients and sauces. CAVA also offers its branded dips, spreads, and other products through select grocery and retail channels, extending the brand beyond its restaurant locations.

CAVA was founded in 2010 by Dimitri Moshovitis, Ike Grigoropoulos, and Ted Xenohristos.

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