CAVA Group (NYSE:CAVA) Stock Gets Price Target Cut from TD Cowen

CAVA Group (NYSE:CAVA) had its target price decreased by TD Cowen from $85.00 to $78.00 in a research note released on Wednesday, MarketBeat reports. TD Cowen currently has a buy rating on the stock.

Other equities research analysts have also recently issued research reports about the company. Citigroup restated a “buy” rating on shares of CAVA Group in a research note on Tuesday, July 28th. DA Davidson lowered their price objective on shares of CAVA Group from $84.00 to $75.00 and set a “neutral” rating on the stock in a research report on Thursday, August 13th. Seaport Research Partners started coverage on shares of CAVA Group in a research report on Wednesday, September 16th. They issued a “buy” rating and a $58.00 price objective on the stock. Northcoast Research raised shares of CAVA Group from a “sell” rating to a “neutral” rating in a research note on Thursday, August 13th. Finally, Melius Research upgraded shares of CAVA Group from a “hold” rating to a “buy” rating and set a $95.00 price objective for the company in a research report on Thursday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and ten have given a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $87.35.

CAVA Group Stock Down 2.1%

NYSE CAVA opened at $53.52 on Wednesday. CAVA Group has a 52-week low of $43.41 and a 52-week high of $98.79. The business’s 50-day moving average price is $58.02 and its 200 day moving average price is $71.05. The firm has a market cap of $6.25 billion, a P/E ratio of 99.42, a P/E/G ratio of 4.24 and a beta of 1.80.

CAVA Group (NYSE:CAVA) last posted its quarterly earnings data on Tuesday, August 11th. The company reported $0.19 EPS for the quarter, beating 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 firm had revenue of $368.44 million during the quarter, compared to the consensus estimate of $360.09 million. During the same period in the prior year, the business earned $0.16 EPS. The firm’s revenue was up 31.3% compared to the same quarter last year. As a group, analysts anticipate that CAVA Group will post 0.55 earnings per share for the current year.

CAVA Group announced that its Board of Directors has authorized a share buyback plan on Friday, September 18th that allows the company to buy back $100.00 million in outstanding shares. This repurchase authorization allows the company to repurchase up to 1.7% of its stock through open market purchases. Share repurchase plans are often a sign that the company’s leadership believes its shares are undervalued.

Insider Transactions at CAVA Group

In other CAVA Group news, insider Douglas Thompson bought 6,500 shares of the business’s stock in a transaction dated Monday, August 31st. The stock was acquired at an average cost of $66.52 per share, with a total value of $432,380.00. Following the purchase, the insider owned 19,371 shares in the company, valued at approximately $1,288,558.92. This represents a 50.50% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 6.70% of the company’s stock.

Institutional Trading of CAVA Group

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

More CAVA Group News

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

• Positive Sentiment: KeyCorp remains bullish: The firm lowered its price target from $95 to $80 but maintained an “overweight” rating, implying substantial upside from recent levels. KeyCorp lowers CAVA price target while maintaining overweight rating
• Positive Sentiment: Analyst targets remain well above the market price: A separate report cited an average price target of $88.62, suggesting analysts still see meaningful long-term appreciation potential. CAVA average analyst price target
• Neutral Sentiment: Investor attention has increased: CAVA is attracting heightened interest from Zacks users, which may increase trading activity but does not by itself change the company’s fundamentals. CAVA attracts investor attention
• Negative Sentiment: TD Cowen issued a pessimistic forecast: The firm’s outlook adds to concerns about CAVA’s valuation and future growth, contributing to the recent weakness. TD Cowen pessimistic forecast for CAVA
• Negative Sentiment: Citigroup cut its target and turned neutral: Citi reduced its price target from $79 to $66 and assigned a “neutral” rating, signaling less confidence in near-term upside. Citigroup lowers CAVA price target
• Negative Sentiment: Analyst downgrades are driving the decline: Reports directly linked CAVA’s recent stock weakness to an analyst downgrade, increasing pressure on the shares. CAVA stock falls following analyst downgrade

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.