CAVA Group (NYSE:CAVA) Trading 6.3% Higher – What’s Next?

CAVA Group, Inc. (NYSE:CAVA)’s stock price traded up 6.3% during mid-day trading on Tuesday . The company traded as high as $55.31 and last traded at $55.2530. 1,034,340 shares traded hands during trading, a decline of 69% from the average daily volume of 3,378,113 shares. The stock had previously closed at $52.00.

Analyst Ratings Changes

A number of equities analysts have weighed in on CAVA shares. Sanford C. Bernstein reaffirmed an “outperform” rating on shares of CAVA Group in a research report on Wednesday, August 12th. Seaport Research Partners initiated coverage on shares of CAVA Group in a report on Wednesday, September 16th. They set a “buy” rating and a $58.00 target price for the company. Compass Point raised CAVA Group to a “neutral” rating in a research report on Monday, September 14th. Royal Bank Of Canada cut their price target on shares of CAVA Group from $95.00 to $85.00 and set an “outperform” rating for the company in a research note on Thursday, September 17th. Finally, Weiss Ratings downgraded CAVA Group from a “hold (c)” rating to a “hold (c-)” rating in a research note on Friday, July 24th. One research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and ten have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $88.64.

CAVA Group Stock Performance

The firm has a fifty day moving average price of $63.65 and a 200-day moving average price of $75.71. The company has a market capitalization of $6.23 billion, a price-to-earnings ratio of 96.75, a price-to-earnings-growth ratio of 4.01 and a beta of 1.74.

CAVA Group (NYSE:CAVA) last posted its quarterly earnings results 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. 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 analyst estimates of $360.09 million. During the same quarter last year, the business posted $0.16 EPS. The firm’s revenue for the quarter was up 31.3% on a year-over-year basis. On average, sell-side analysts forecast that CAVA Group, Inc. will post 0.55 EPS for the current fiscal year.

CAVA Group declared that its Board of Directors has approved a stock buyback plan on Friday, September 18th that authorizes the company to repurchase $100.00 million in shares. This repurchase authorization authorizes the company to buy up to 1.7% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other news, insider Douglas Thompson acquired 6,500 shares of CAVA Group stock in a transaction that occurred on Monday, August 31st. The shares were acquired at an average price of $66.52 per share, for a total transaction of $432,380.00. Following 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 acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 6.70% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On CAVA Group

Hedge funds have recently added to or reduced their stakes in the business. Wellington Altus USA Inc. bought a new stake in CAVA Group during the 2nd quarter worth approximately $113,000. Engineers Gate Manager LP bought a new stake in CAVA Group during the 2nd quarter worth approximately $670,000. NewEdge Advisors LLC raised its stake in CAVA Group by 5.3% in the second quarter. NewEdge Advisors LLC now owns 13,050 shares of the company’s stock valued at $1,024,000 after purchasing an additional 656 shares in the last quarter. Nykredit A S purchased a new position in shares of CAVA Group in the 2nd quarter worth about $272,000. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in shares of CAVA Group during the 2nd quarter valued at $1,711,000. 73.15% of the stock is currently owned by institutional investors.

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.