CAVA Group (NYSE:CAVA) Trading Down 6.6% - Here's What Happened

Key Points

• CAVA shares fell 6.6% to about $61.44 in midday trading, with volume down 58% from the stock’s average daily level.
• Despite the selloff, CAVA reported quarterly EPS of $0.19 versus expectations of $0.18, while revenue rose 31.3% year over year to $368.44 million. Analysts maintain a “Moderate Buy” consensus with an average price target of $89.44.
• Insiders sold 67,512 shares worth approximately $6.05 million over the past 90 days, while institutional investors own 73.15% of the company.

CAVA Group, Inc. (NYSE:CAVA - Get Free Report)'s share price fell 6.6% on Tuesday . The stock traded as low as $61.58 and last traded at $61.4390. Approximately 1,415,050 shares were traded during mid-day trading, a decline of 58% from the average daily volume of 3,339,781 shares. The stock had previously closed at $65.75.

Wall Street Analysts Forecast Growth

CAVA has been the subject of a number of research analyst reports. Roth Capital reiterated a "buy" rating and issued a $95.00 target price (down from $106.00) on shares of CAVA Group in a research report on Wednesday, August 12th. Weiss Ratings cut shares of CAVA Group from a "hold (c)" rating to a "hold (c-)" rating in a report on Friday, July 24th. Guggenheim dropped their price target on shares of CAVA Group from $100.00 to $95.00 and set a "buy" rating on the stock in a research note on Thursday, August 13th. Wolfe Research lifted their price objective on CAVA Group from $79.00 to $82.00 and gave the company an "outperform" rating in a research report on Wednesday, August 12th. Finally, Argus set a $92.00 price objective on CAVA Group in a research report on Friday, May 22nd. One research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $89.44.

CAVA Group Trading Down 6.4%

The firm has a market cap of $7.19 billion, a P/E ratio of 111.95, a P/E/G ratio of 4.56 and a beta of 1.75. The business's fifty day moving average price is $69.68 and its two-hundred day moving average price is $77.33.

CAVA Group (NYSE:CAVA - Get Free Report) last issued its quarterly earnings data 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. The firm had revenue of $368.44 million during the quarter, compared to analysts' expectations of $360.09 million. CAVA Group had a net margin of 4.82% and a return on equity of 8.28%. CAVA Group's revenue for the quarter was up 31.3% on a year-over-year basis. During the same period in the prior year, the company posted $0.16 earnings per share. Research analysts predict that CAVA Group, Inc. will post 0.54 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider Theodoros Xenohristos sold 3,252 shares of the stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $89.43, for a total transaction of $290,826.36. Following the transaction, the insider owned 324,630 shares of the company's stock, valued at approximately $29,031,660.90. This represents a 0.99% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Karen Kochevar sold 10,000 shares of the firm's stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $90.00, for a total value of $900,000.00. Following the completion of the transaction, the director directly owned 3,074 shares in the company, valued at $276,660. The trade was a 76.49% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 67,512 shares of company stock valued at $6,050,417. 6.70% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On CAVA Group

A number of large investors have recently added to or reduced their stakes in CAVA. Los Angeles Capital Management LLC acquired a new position in CAVA Group during the fourth quarter valued at approximately $25,000. Ancora Advisors LLC acquired a new stake in shares of CAVA Group in the second quarter worth $27,000. FNY Investment Advisers LLC bought a new stake in shares of CAVA Group during the 2nd quarter worth $31,000. Philadelphia Investment Partners LLC bought a new stake in shares of CAVA Group during the 2nd quarter worth $33,000. Finally, TD Private Client Wealth LLC grew its stake in CAVA Group by 118.2% in the 4th quarter. TD Private Client Wealth LLC now owns 600 shares of the company's stock valued at $35,000 after buying an additional 325 shares during the last quarter. Institutional investors own 73.15% of the company's stock.

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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