CAVA Group (NYSE:CAVA) Stock Price Down 4.8% – Should You Sell?

Shares of CAVA Group, Inc. (NYSE:CAVA) traded down 4.8% during trading on Monday . The company traded as low as $65.53 and last traded at $65.5430. 436,936 shares were traded during mid-day trading, a decline of 87% from the average session volume of 3,306,323 shares. The stock had previously closed at $68.85.

Wall Street Analyst Weigh In

Several research firms recently weighed in on CAVA. BMO Capital Markets set a $100.00 price target on shares of CAVA Group in a report on Wednesday, May 20th. Northcoast Research raised shares of CAVA Group to a “strong sell” rating in a research report on Tuesday, April 21st. Mizuho lifted their target price on shares of CAVA Group from $72.00 to $80.00 and gave the company a “neutral” rating in a research note on Thursday, April 2nd. Wall Street Zen raised shares of CAVA Group from a “sell” rating to a “hold” rating in a research note on Sunday, May 24th. Finally, Barclays boosted their price target on shares of CAVA Group from $70.00 to $74.00 and gave the company an “equal weight” rating in a research report on Wednesday, May 20th. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $93.54.

CAVA Group Price Performance

The company has a market capitalization of $7.60 billion, a PE ratio of 125.73, a PEG ratio of 4.72 and a beta of 1.69. The company has a 50 day moving average of $77.98 and a two-hundred day moving average of $77.18.

CAVA Group (NYSE:CAVA) last posted its quarterly earnings data 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. CAVA Group had a return on equity of 7.92% and a net margin of 4.79%.The business had revenue of $438.27 million during the quarter, compared to the consensus estimate of $360.89 million. During the same quarter in the prior year, the company earned $0.22 earnings per share. The firm’s quarterly revenue was up 32.1% compared to the same quarter last year. On average, equities analysts anticipate that CAVA Group, Inc. will post 0.55 EPS for the current year.

Insider Buying and Selling

In related news, insider Theodoros Xenohristos sold 9,044 shares of CAVA Group stock in a transaction dated 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 transaction, the insider directly owned 327,882 shares of the company’s stock, valued at $26,148,589.50. This trade represents a 2.68% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Kelly Costanza sold 12,490 shares of the business’s stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $90.00, for a total transaction of $1,124,100.00. Following the sale, the insider directly owned 98,490 shares in the company, valued at $8,864,100. The trade was a 11.25% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 91,747 shares of company stock worth $7,970,838 over the last 90 days. Corporate insiders own 6.70% of the company’s stock.

Hedge Funds Weigh In On CAVA Group

Large investors have recently made changes to their positions in the business. Capital Research Global Investors increased its position in CAVA Group by 27.2% during the 4th quarter. Capital Research Global Investors now owns 8,440,040 shares of the company’s stock valued at $495,344,000 after buying an additional 1,805,174 shares in the last quarter. Capital International Investors boosted its holdings in CAVA Group by 15.5% in the fourth quarter. Capital International Investors now owns 4,885,317 shares of the company’s stock worth $286,718,000 after acquiring an additional 656,581 shares in the last quarter. Morgan Stanley grew its stake in shares of CAVA Group by 33.7% in the fourth quarter. Morgan Stanley now owns 3,318,894 shares of the company’s stock worth $194,786,000 after acquiring an additional 835,628 shares during the last quarter. State Street Corp grew its stake in shares of CAVA Group by 1.3% in the fourth quarter. State Street Corp now owns 2,920,442 shares of the company’s stock worth $171,401,000 after acquiring an additional 36,508 shares during the last quarter. Finally, William Blair Investment Management LLC increased its holdings in shares of CAVA Group by 28.1% during the fourth quarter. William Blair Investment Management LLC now owns 2,419,247 shares of the company’s stock valued at $141,986,000 after acquiring an additional 530,524 shares in the last quarter. 73.15% of the stock is currently owned by hedge funds and other institutional investors.

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.