CAVA Group (NYSE:CAVA) Shares Climb 5.4% – Here’s Why

CAVA Group, Inc. (NYSE:CAVA) shares traded up 5.4% on Wednesday. The company traded as high as $55.31 and last traded at $54.68. 515,143 shares traded hands during mid-day trading, a decline of 85% from the average session volume of 3,338,653 shares. The stock had previously closed at $51.86.

Analysts Set New Price Targets

CAVA has been the subject of a number of analyst reports. JPMorgan Chase & Co. reduced their price objective on shares of CAVA Group from $85.00 to $80.00 and set an “overweight” rating for the company in a research note on Friday, September 18th. Weiss Ratings raised shares of CAVA Group from a “hold (c-)” rating to a “hold (c)” rating in a research report on Thursday, October 8th. Morgan Stanley raised shares of CAVA Group from an “equal weight” rating to an “overweight” rating and lifted their target price for the stock from $86.00 to $90.00 in a research report on Wednesday, July 15th. DA Davidson cut their price target on shares of CAVA Group from $84.00 to $75.00 and set a “neutral” rating on the stock in a report on Thursday, August 13th. Finally, Guggenheim reduced their price target on shares of CAVA Group from $100.00 to $95.00 and set a “buy” rating for the company in a research report on Thursday, August 13th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and ten have issued a Hold rating to the company. According to MarketBeat, CAVA Group presently has an average rating of “Moderate Buy” and a consensus target price of $86.81.

CAVA Group Stock Performance

The firm has a 50 day moving average of $56.93 and a 200-day moving average of $71.40. The stock has a market capitalization of $6.92 billion, a PE ratio of 107.65, a P/E/G ratio of 4.32 and a beta of 1.80.

CAVA Group (NYSE:CAVA) last announced its quarterly earnings data on Tuesday, August 11th. The company reported $0.19 EPS for the quarter, topping analysts’ consensus estimates of $0.18 by $0.01. The firm had revenue of $368.44 million during the quarter, compared to analyst estimates of $360.09 million. CAVA Group had a return on equity of 8.28% and a net margin of 4.82%. The business’s quarterly revenue was up 31.3% compared to the same quarter last year. During the same period last year, the company posted $0.16 EPS. On average, sell-side analysts predict that CAVA Group, Inc. 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 Investors Weigh In On CAVA Group

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

CAVA Group Company Profile

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.