CAVA Group (NYSE:CAVA) Trading Down 7.5% – Here’s Why

CAVA Group, Inc. (NYSE:CAVA) shares fell 7.5% during mid-day trading on Monday . The stock traded as low as $82.64 and last traded at $82.4510. 1,256,638 shares were traded during trading, a decline of 63% from the average daily volume of 3,368,020 shares. The stock had previously closed at $89.18.

Analysts Set New Price Targets

A number of analysts recently commented on CAVA shares. Piper Sandler lifted their target price on shares of CAVA Group from $85.00 to $92.00 and gave the stock an “overweight” rating in a research note on Wednesday, May 20th. Morgan Stanley upped their price target 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. Robert W. Baird raised their price target on shares of CAVA Group from $88.00 to $98.00 and gave the stock an “outperform” rating in a report on Wednesday, May 20th. TD Cowen reiterated a “buy” rating and set a $100.00 price objective on shares of CAVA Group in a research note on Thursday, June 4th. Finally, Mizuho boosted their price objective on shares of CAVA Group from $72.00 to $80.00 and gave the company a “neutral” rating in a report on Thursday, April 2nd. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $93.37.

CAVA Group Price Performance

The stock has a fifty day moving average of $83.92 and a 200 day moving average of $74.81. The stock has a market cap of $9.57 billion, a price-to-earnings ratio of 157.12, a P/E/G ratio of 5.54 and a beta of 1.70.

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

Insider Transactions at CAVA Group

In related news, insider Theodoros Xenohristos sold 3,252 shares of the business’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $89.43, for a total transaction of $290,826.36. Following the completion of the transaction, the insider directly owned 324,630 shares in the company, valued at $29,031,660.90. The trade was a 0.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed 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, Director Karen Kochevar sold 10,000 shares of the company’s stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $90.00, for a total transaction of $900,000.00. Following the completion of the sale, the director directly owned 3,074 shares in the company, valued at approximately $276,660. The trade was a 76.49% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 91,747 shares of company stock valued at $7,970,838. 6.70% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On CAVA Group

A number of institutional investors have recently modified their holdings of the stock. NewEdge Advisors LLC raised its position in CAVA Group by 6.7% during the first quarter. NewEdge Advisors LLC now owns 12,394 shares of the company’s stock valued at $1,003,000 after acquiring an additional 782 shares in the last quarter. Amundi boosted its position in CAVA Group by 578.4% in the 1st quarter. Amundi now owns 290,281 shares of the company’s stock worth $23,484,000 after purchasing an additional 247,489 shares in the last quarter. EverSource Wealth Advisors LLC boosted its position in CAVA Group by 60.7% in the 1st quarter. EverSource Wealth Advisors LLC now owns 1,040 shares of the company’s stock worth $84,000 after purchasing an additional 393 shares in the last quarter. California State Teachers Retirement System grew its stake in shares of CAVA Group by 25.2% during the 1st quarter. California State Teachers Retirement System now owns 110,842 shares of the company’s stock worth $8,967,000 after purchasing an additional 22,322 shares during the period. Finally, Quantinno Capital Management LP grew its stake in shares of CAVA Group by 123.0% during the 1st quarter. Quantinno Capital Management LP now owns 76,126 shares of the company’s stock worth $6,159,000 after purchasing an additional 41,986 shares during the period. Hedge funds and other 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.