CAVA Group (NYSE:CAVA) Stock Jumps 4.5% - Here's What Happened

Key Points

• CAVA shares rose 4.5% to about $57.91, though trading volume was 59% below the average daily level.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $88.88, despite recent target cuts from DA Davidson and Mizuho.
• CAVA reported quarterly revenue growth of 31.3% and exceeded earnings expectations; the company also authorized a $100 million stock buyback, while an insider purchased 6,500 shares.

CAVA Group, Inc. (NYSE:CAVA - Get Free Report)'s stock price was up 4.5% during trading on Friday. The stock traded as high as $58.54 and last traded at $57.9140. Approximately 1,385,703 shares were traded during mid-day trading, a decline of 59% from the average daily volume of 3,364,762 shares. The stock had previously closed at $55.40.

Analysts Set New Price Targets

A number of research firms have recently issued reports on CAVA. Citigroup reiterated a "buy" rating on shares of CAVA Group in a research note on Tuesday, July 28th. Freedom Capital raised shares of CAVA Group to a "hold" rating in a report on Wednesday, July 1st. DA Davidson reduced their price objective on shares of CAVA Group from $84.00 to $75.00 and set a "neutral" rating for the company in a research note on Thursday, August 13th. Mizuho reduced their price objective on shares of CAVA Group from $85.00 to $70.00 and set a "neutral" rating for the company in a research note on Wednesday, August 12th. Finally, Sanford C. Bernstein restated an "outperform" rating on shares of CAVA Group in a report on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and ten have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $88.88.

CAVA Group Stock Up 3.0%

The firm has a market capitalization of $6.67 billion, a PE ratio of 103.69, a price-to-earnings-growth ratio of 4.00 and a beta of 1.80. The company's 50-day simple moving average is $59.33 and its 200 day simple moving average is $71.99.

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

CAVA Group declared that its board has approved a stock repurchase program on Friday, September 18th that permits the company to repurchase $100.00 million in outstanding shares. This buyback authorization permits the company to reacquire up to 1.7% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling

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

Hedge Funds Weigh In On CAVA Group

Several institutional investors and hedge funds have recently bought and sold shares of the company. Daytona Street Capital LLC acquired a new position in CAVA Group during the 3rd quarter valued at about $178,000. AdvisorNet Financial Inc boosted its holdings in CAVA Group by 18.8% in the third quarter. AdvisorNet Financial Inc now owns 5,109 shares of the company's stock worth $264,000 after acquiring an additional 807 shares in the last quarter. Seelaus Asset Management LLC boosted its holdings in CAVA Group by 40.5% in the third quarter. Seelaus Asset Management LLC now owns 4,017 shares of the company's stock worth $217,000 after acquiring an additional 1,157 shares in the last quarter. Generate Investment Management Ltd purchased a new stake in shares of CAVA Group during the third quarter worth about $11,221,000. Finally, Farther Finance Advisors LLC grew its stake in shares of CAVA Group by 34.6% during the third quarter. Farther Finance Advisors LLC now owns 5,285 shares of the company's stock worth $286,000 after acquiring an additional 1,358 shares during the last quarter. 73.15% of the stock is owned by hedge funds and other institutional investors.

CAVA Group Company Profile

CAVA Group, Inc is a fast-casual restaurant company focused on Mediterranean-inspired food and hospitality. Its restaurants offer customizable meals such as grain bowls, salads, pitas and dips, with ingredients and flavors influenced by the cuisines of the Mediterranean region. The company also provides digital ordering, delivery and catering services through its restaurant platform.

CAVA began as a Washington, DC-area restaurant concept and has expanded its operations across the United States.

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