CAVA Group, Inc. (CAVA) – What Are Analysts Thinking About This Stock?

CAVA Group, Inc. (NYSE:CAVA) has been given a consensus recommendation of “Moderate Buy” by the twenty-eight analysts that are currently covering the firm, MarketBeat reports. Ten analysts have rated the stock with a hold recommendation, seventeen have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year target price among analysts that have issued ratings on the stock in the last year is $87.35.

Several research firms recently weighed in on CAVA. JPMorgan Chase & Co. dropped their price target on CAVA Group from $85.00 to $80.00 and set an “overweight” rating on the stock in a research report on Friday, September 18th. Compass Point upgraded CAVA Group to a “neutral” rating in a research report on Monday, September 14th. Northcoast Research upgraded CAVA Group from a “sell” rating to a “neutral” rating in a research report on Thursday, August 13th. Morgan Stanley raised CAVA Group from an “equal weight” rating to an “overweight” rating and lifted their target price for the company from $86.00 to $90.00 in a research note on Wednesday, July 15th. Finally, DA Davidson dropped their target price on CAVA Group from $84.00 to $75.00 and set a “neutral” rating on the stock in a report on Thursday, August 13th.

CAVA Group Price Performance

Shares of CAVA opened at $51.49 on Thursday. The company has a 50-day moving average of $57.84 and a two-hundred day moving average of $71.61. The stock has a market cap of $6.01 billion, a price-to-earnings ratio of 97.24, a PEG ratio of 4.14 and a beta of 1.80. CAVA Group has a one year low of $43.41 and a one year high of $98.79.

CAVA Group (NYSE:CAVA) last released its quarterly earnings results on Tuesday, August 11th. The company reported $0.19 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 in the previous year, the business earned $0.16 earnings per share. The firm’s revenue was up 31.3% compared to the same quarter last year. Analysts anticipate that CAVA Group will post 0.55 earnings per share for the current year.

CAVA Group announced that its board has initiated a share repurchase program on Friday, September 18th that authorizes the company to repurchase $100 million in shares. This repurchase authorization authorizes the company to purchase up to 1.7% of its shares through open market purchases. Share repurchase programs are usually a sign that the company’s leadership believes its shares are undervalued.

Insider Activity at CAVA Group

In related news, insider Douglas Thompson purchased 6,500 shares of the firm’s stock in a transaction that occurred on Monday, August 31st. The stock was acquired at an average cost of $66.52 per share, for a total transaction of $432,380.00. Following the completion of the acquisition, the insider owned 19,371 shares in the company, valued at $1,288,558.92. This trade represents a 50.50% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 6.70% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new stake in shares of CAVA Group during the second quarter worth $757,013,000. Primecap Management Co. CA purchased a new position in CAVA Group in the second quarter valued at about $92,956,000. William Blair Investment Management LLC purchased a new position in CAVA Group in the second quarter valued at about $89,861,000. Prime Capital Management Co Ltd acquired a new position in CAVA Group in the 2nd quarter worth about $80,962,000. Finally, Wellington Management Group LLP increased its position in CAVA Group by 76.9% in the 2nd quarter. Wellington Management Group LLP now owns 1,605,508 shares of the company’s stock worth $126,000,000 after purchasing an additional 697,699 shares during the last quarter. Institutional investors and hedge funds own 73.15% of the company’s stock.

About CAVA Group

CAVA Group, Inc operates CAVA, a fast-casual restaurant brand serving Mediterranean-inspired food in the United States. Its menu includes customizable bowls and pitas, salads, dips, spreads, grilled proteins, and other Mediterranean dishes, with options designed to accommodate a range of dietary preferences.

The company’s restaurants generally use an assembly-line format that allows customers to build meals from a selection of ingredients and sauces. CAVA also offers its branded dips, spreads, and other products through select grocery and retail channels, extending the brand beyond its restaurant locations.

CAVA was founded in 2010 by Dimitri Moshovitis, Ike Grigoropoulos, and Ted Xenohristos.