CAVA Group (NYSE:CAVA) Shares Down 6.1% – Here’s What Happened

CAVA Group, Inc. (NYSE:CAVA) fell 6.1% on Tuesday . The company traded as low as $51.68 and last traded at $51.5440. Approximately 1,132,353 shares changed hands during mid-day trading, a decline of 66% from the average session volume of 3,323,003 shares. The stock had previously closed at $54.89.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on CAVA. Stifel Nicolaus increased their target price on CAVA Group from $90.00 to $105.00 and gave the company a “buy” rating in a research report on Wednesday, May 20th. Sanford C. Bernstein reissued an “outperform” rating on shares of CAVA Group in a report on Wednesday, August 12th. Citigroup restated a “buy” rating on shares of CAVA Group in a research report on Tuesday, July 28th. KeyCorp decreased their price objective 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. Finally, UBS Group upgraded shares of CAVA Group from a “neutral” rating to a “buy” rating and lifted their target price for the company from $85.00 to $90.00 in a research report on Wednesday, June 10th. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and ten have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $89.44.

CAVA Group Price Performance

The business’s 50 day simple moving average is $65.58 and its 200 day simple moving average is $76.79. The company has a market capitalization of $5.83 billion, a PE ratio of 90.59, a P/E/G ratio of 4.34 and a beta of 1.74.

CAVA Group (NYSE:CAVA) last posted its earnings results on Tuesday, August 11th. The company reported $0.19 EPS for the quarter, beating analysts’ consensus estimates of $0.18 by $0.01. CAVA Group had a return on equity of 8.28% and a net margin of 4.82%.The company had revenue of $368.44 million for the quarter, compared to the consensus estimate of $360.09 million. During the same quarter in the previous year, the business earned $0.16 earnings per share. The company’s revenue for the quarter was up 31.3% on a year-over-year basis. As a group, analysts anticipate that CAVA Group, Inc. will post 0.55 EPS for the current year.

Insider Activity at CAVA Group

In other news, insider Douglas W. Thompson bought 6,500 shares of the business’s stock in a transaction that occurred on Monday, August 31st. The shares were purchased at an average cost of $66.52 per share, for a total transaction of $432,380.00. Following the completion of the purchase, the insider owned 19,371 shares of the company’s stock, valued at approximately $1,288,558.92. This represents a 50.50% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Karen Kochevar sold 10,000 shares of the stock in a transaction that occurred 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. This represents a 76.49% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 6.70% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Engineers Gate Manager LP acquired a new position in CAVA Group in the second quarter valued at $670,000. NewEdge Advisors LLC lifted its holdings in shares of CAVA Group by 5.3% in the 2nd 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 during the last quarter. Nykredit A S acquired a new stake in shares of CAVA Group in the 2nd quarter valued at about $272,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in CAVA Group during the 2nd quarter worth approximately $1,711,000. Finally, Ameritas Advisory Services LLC acquired a new position in CAVA Group during the second quarter worth approximately $2,492,000. Institutional investors and hedge funds own 73.15% of the company’s stock.

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.