CAVA Group (NYSE:CAVA) Stock Price Down 6.1% - Here's What Happened

Key Points

• CAVA shares fell 6.1% to about $51.54, with trading volume down 66% from the average. The stock remains below its 50-day and 200-day moving averages.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $89.44; RBC raised its target to $95, while Roth Capital lowered its target to $95 from $106.
• CAVA exceeded quarterly expectations, reporting $0.19 in EPS and $368.44 million in revenue, up 31.3% year over year. Insider activity was mixed, with one director selling shares while another insider bought 6,500 shares.

CAVA Group, Inc. (NYSE:CAVA - Get Free Report)'s stock price was down 6.1% on Tuesday . The stock traded as low as $51.68 and last traded at $51.5440. 1,132,353 shares changed hands during trading, a decline of 66% from the average daily volume of 3,323,003 shares. The stock had previously closed at $54.89.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on CAVA. Royal Bank Of Canada upped their target price on shares of CAVA Group from $90.00 to $95.00 and gave the stock an "outperform" rating in a report on Wednesday, August 12th. Citigroup restated a "buy" rating on shares of CAVA Group in a research report on Tuesday, July 28th. Wall Street Zen raised CAVA Group from a "sell" rating to a "hold" rating in a research note on Sunday, May 24th. Roth Capital reiterated a "buy" rating and set a $95.00 target price (down from $106.00) on shares of CAVA Group in a research report on Wednesday, August 12th. Finally, Freedom Capital raised CAVA Group to a "hold" rating in a research note on Wednesday, July 1st. One analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $89.44.

CAVA Group Stock Performance

The company has a market cap of $5.83 billion, a PE ratio of 90.59, a price-to-earnings-growth ratio of 4.34 and a beta of 1.74. The company has a fifty day moving average of $65.58 and a two-hundred day moving average of $76.79.

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

Insider Activity

In other news, Director Karen Kochevar sold 10,000 shares of CAVA Group stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $90.00, for a total value of $900,000.00. Following the transaction, the director directly owned 3,074 shares in the company, valued at approximately $276,660. This trade represents a 76.49% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Douglas Thompson bought 6,500 shares of CAVA Group stock in a transaction on Monday, August 31st. The stock was purchased at an average price of $66.52 per share, with a total value of $432,380.00. Following the completion of the acquisition, the insider directly owned 19,371 shares of the company's stock, valued at $1,288,558.92. This represents a 50.50% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 6.70% of the company's stock.

Institutional Trading of CAVA Group

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

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.