Oppenheimer Asset Management Inc. Acquires New Stake in CAVA Group, Inc. $CAVA

Oppenheimer Asset Management Inc. bought a new position in shares of CAVA Group, Inc. (NYSE:CAVA) in the 2nd quarter, HoldingsChannel.com reports. The firm bought 19,760 shares of the company’s stock, valued at approximately $1,551,000.

Other institutional investors have also added to or reduced their stakes in the company. Capital Research Global Investors raised its holdings in shares of CAVA Group by 27.2% in the 4th quarter. Capital Research Global Investors now owns 8,440,040 shares of the company’s stock valued at $495,344,000 after acquiring an additional 1,805,174 shares in the last quarter. Marshall Wace LLP grew its holdings in shares of CAVA Group by 689.8% during the fourth quarter. Marshall Wace LLP now owns 1,387,774 shares of the company’s stock worth $81,448,000 after purchasing an additional 1,212,068 shares in the last quarter. Primecap Management Co. CA increased its position in shares of CAVA Group by 1,378.3% in the fourth quarter. Primecap Management Co. CA now owns 1,260,250 shares of the company’s stock worth $73,964,000 after purchasing an additional 1,175,000 shares during the last quarter. Norges Bank bought a new position in shares of CAVA Group in the fourth quarter worth approximately $50,278,000. Finally, Morgan Stanley increased its position 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 purchasing an additional 835,628 shares during the last quarter. 73.15% of the stock is currently owned by institutional investors.

Key CAVA Group News

Here are the key news stories impacting CAVA Group this week:

• Positive Sentiment: Second-quarter results exceeded expectations, with approximately 9% same-restaurant sales growth, continued traffic recovery, and revenue and earnings above consensus. Full-year guidance was maintained, suggesting management remains confident in the growth outlook. CAVA Earnings: The Easiest Comp of the Year Meets a Tough Valuation
• Positive Sentiment: Analyst sentiment provided additional support. Roth Capital reiterated a Buy rating, TD Cowen issued a Buy, RBC indicated further upside, and Northcoast Research upgraded CAVA from Sell to Neutral. Roth Capital Reiterates Buy Rating for CAVA Group CAVA Group Gets a Buy from TD Cowen
• Neutral Sentiment: The earnings reaction has renewed debate over whether mid-single-digit comparable-sales growth can justify CAVA’s elevated valuation. With a high earnings multiple, investors may demand sustained rapid expansion and margin improvement.
• Negative Sentiment: Operating margins declined during the quarter, and KeyCorp issued a pessimistic forecast. These concerns could limit further gains if growth slows or profitability fails to scale. KeyCorp Issues Pessimistic Forecast for CAVA Group Stock Price
• Negative Sentiment: A broader cyclospora outbreak and salmonella flare-up are weighing on restaurant-industry food-safety perceptions and may reduce dining-out activity. No company-specific connection to CAVA was identified, but the issue represents a potential sector-level risk.

CAVA Group Price Performance

NYSE:CAVA opened at $74.46 on Monday. The business has a 50 day moving average of $73.07 and a 200 day moving average of $76.95. The company has a market capitalization of $8.70 billion, a price-to-earnings ratio of 135.38, a PEG ratio of 5.12 and a beta of 1.75. CAVA Group, Inc. has a 1-year low of $43.41 and a 1-year high of $98.79.

CAVA Group (NYSE:CAVA) last issued its 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 return on equity of 8.28% and a net margin of 4.82%.The business had revenue of $368.44 million during the quarter, compared to analyst estimates of $360.09 million. During the same quarter in the prior year, the firm earned $0.16 earnings per share. CAVA Group’s revenue for the quarter was up 31.3% on a year-over-year basis. As a group, sell-side analysts anticipate that CAVA Group, Inc. will post 0.53 EPS for the current year.

Insider Transactions at CAVA Group

In other news, CAO Adam David Phillips sold 757 shares of the business’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $89.43, for a total value of $67,698.51. Following the completion of the sale, the chief accounting officer directly owned 6,848 shares in the company, valued at approximately $612,416.64. The trade was a 9.95% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through 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 company’s stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $90.00, for a total transaction of $1,124,100.00. Following the completion of the sale, the insider directly owned 98,490 shares of the company’s stock, valued at $8,864,100. This trade represents a 11.25% 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 82,703 shares of company stock worth $7,249,579. Corporate insiders own 6.70% of the company’s stock.

Analyst Upgrades and Downgrades

CAVA has been the subject of several research analyst reports. Argus set a $92.00 target price on shares of CAVA Group in a research report on Friday, May 22nd. KeyCorp decreased their price target on shares of CAVA Group from $110.00 to $95.00 and set an “overweight” rating on the stock in a report on Wednesday, August 12th. BMO Capital Markets set a $100.00 price objective on shares of CAVA Group in a research report on Wednesday, May 20th. DA Davidson dropped their price objective on shares of CAVA Group from $84.00 to $75.00 and set a “neutral” rating for the company in a report on Thursday. Finally, UBS Group upgraded shares of CAVA Group from a “neutral” rating to a “buy” rating and upped their target price for the stock from $85.00 to $90.00 in a research report on Wednesday, June 10th. Seventeen analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $89.44.

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.