CAVA Group (NYSE:CAVA) Trading 6.6% Higher – Still a Buy?

CAVA Group, Inc. (NYSE:CAVA)’s stock price rose 6.6% during mid-day trading on Wednesday . The stock traded as high as $81.52 and last traded at $81.2940. Approximately 543,904 shares were traded during trading, a decline of 84% from the average daily volume of 3,352,081 shares. The stock had previously closed at $76.28.

Wall Street Analysts Forecast Growth

CAVA has been the subject of several research reports. Citigroup lifted their price target on CAVA Group from $75.00 to $92.00 and gave the stock a “neutral” rating in a research note on Monday, May 4th. Robert W. Baird boosted their target price on shares of CAVA Group from $88.00 to $98.00 and gave the company an “outperform” rating in a research note on Wednesday, May 20th. Morgan Stanley boosted their target price on shares of CAVA Group from $85.00 to $86.00 and gave the company an “equal weight” rating in a research note on Wednesday, May 20th. Weiss Ratings raised shares of CAVA Group from a “hold (c-)” rating to a “hold (c)” rating in a research note on Wednesday, May 20th. Finally, Telsey Advisory Group boosted their target price on shares of CAVA Group from $92.00 to $95.00 and gave the company an “outperform” rating in a research note on Wednesday, May 20th. One analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, CAVA Group presently has an average rating of “Moderate Buy” and a consensus price target of $93.37.

CAVA Group Stock Performance

The firm has a market capitalization of $9.44 billion, a PE ratio of 155.35, a price-to-earnings-growth ratio of 5.05 and a beta of 1.70. The company’s fifty day moving average price is $83.07 and its two-hundred day moving average price is $72.21.

CAVA Group (NYSE:CAVA) last posted its earnings results on Tuesday, May 19th. The company reported $0.20 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.17 by $0.03. The firm had revenue of $438.27 million during the quarter, compared to the consensus estimate of $360.89 million. CAVA Group had a net margin of 4.79% and a return on equity of 7.92%. The company’s revenue was up 32.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.22 EPS. On average, equities analysts expect that CAVA Group, Inc. will post 0.55 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Theodoros Xenohristos sold 9,044 shares of the stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $79.75, for a total transaction of $721,259.00. Following the completion of the sale, the insider owned 327,882 shares of the company’s stock, valued at approximately $26,148,589.50. This represents a 2.68% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Kelly Costanza sold 10,010 shares of the stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $79.87, for a total transaction of $799,498.70. Following the sale, the insider directly owned 113,850 shares of the company’s stock, valued at approximately $9,093,199.50. This trade represents a 8.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 24,235 shares of company stock valued at $1,920,420. 6.70% of the stock is currently owned by corporate insiders.

Institutional Trading of CAVA Group

Hedge funds have recently made changes to their positions in the stock. Los Angeles Capital Management LLC acquired a new stake in shares of CAVA Group during the fourth quarter worth approximately $25,000. Harbor Investment Advisory LLC boosted its holdings in CAVA Group by 347.8% in the fourth quarter. Harbor Investment Advisory LLC now owns 515 shares of the company’s stock worth $30,000 after purchasing an additional 400 shares during the period. Strategic Investment Solutions Inc. IL acquired a new position in CAVA Group in the third quarter worth $36,000. TD Private Client Wealth LLC boosted its holdings in CAVA Group by 118.2% in the fourth quarter. TD Private Client Wealth LLC now owns 600 shares of the company’s stock worth $35,000 after purchasing an additional 325 shares during the period. Finally, EverSource Wealth Advisors LLC boosted its holdings in CAVA Group by 115.7% in the fourth quarter. EverSource Wealth Advisors LLC now owns 647 shares of the company’s stock worth $38,000 after purchasing an additional 347 shares during the period. Institutional investors and hedge funds own 73.15% of the company’s stock.

CAVA Group Company Profile

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.