CAVA Group (NYSE:CAVA) Trading Down 7.5% – Time to Sell?

CAVA Group, Inc. (NYSE:CAVA)’s share price fell 7.5% during trading on Monday . The stock traded as low as $82.64 and last traded at $82.4510. Approximately 1,256,638 shares were traded during trading, a decline of 63% from the average session volume of 3,368,020 shares. The stock had previously closed at $89.18.

Analyst Upgrades and Downgrades

CAVA has been the topic of a number of analyst reports. TD Cowen reaffirmed a “buy” rating and issued a $100.00 price objective on shares of CAVA Group in a report on Thursday, June 4th. Weiss Ratings upgraded shares of CAVA Group from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, May 20th. Royal Bank Of Canada raised their price target on shares of CAVA Group from $100.00 to $105.00 and gave the company an “outperform” rating in a research note on Wednesday, May 20th. Guggenheim assumed coverage on CAVA Group in a report on Thursday, March 26th. They set a “buy” rating and a $100.00 price target on the stock. Finally, The Goldman Sachs Group boosted their price objective on CAVA Group from $75.00 to $86.00 and gave the stock a “neutral” rating in a research report on Monday, April 13th. One research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $93.37.

CAVA Group Stock Down 9.2%

The business’s 50 day moving average is $84.16 and its two-hundred day moving average is $74.44. The firm has a market capitalization of $9.43 billion, a P/E ratio of 157.30, a PEG ratio of 6.11 and a beta of 1.70.

CAVA Group (NYSE:CAVA) last posted its quarterly earnings data on Tuesday, May 19th. The company reported $0.20 earnings per share for the quarter, topping the consensus estimate of $0.17 by $0.03. The business had revenue of $438.27 million during the quarter, compared to the consensus estimate of $360.89 million. CAVA Group had a net margin of 4.79% and a return on equity of 7.92%. The company’s quarterly revenue was up 32.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.22 earnings per share. As a group, equities analysts anticipate that CAVA Group, Inc. will post 0.55 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CAO Adam David Phillips sold 757 shares of the 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 transaction, the chief accounting officer directly owned 6,848 shares in the company, valued at $612,416.64. This trade represents a 9.95% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Tricia K. Tolivar sold 4,969 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $89.43, for a total transaction of $444,377.67. Following the completion of the transaction, the chief financial officer owned 234,931 shares of the company’s stock, valued at $21,009,879.33. This trade represents a 2.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 81,747 shares of company stock worth $7,070,838. Company insiders own 6.70% of the company’s stock.

Hedge Funds Weigh In On CAVA Group

Several hedge funds have recently modified their holdings of CAVA. Los Angeles Capital Management LLC bought a new stake in shares of CAVA Group in the 4th quarter worth $25,000. Harbor Investment Advisory LLC boosted its stake in CAVA Group by 347.8% during the fourth quarter. Harbor Investment Advisory LLC now owns 515 shares of the company’s stock valued at $30,000 after buying an additional 400 shares in the last quarter. TD Private Client Wealth LLC grew its holdings in CAVA Group by 118.2% during the fourth quarter. TD Private Client Wealth LLC now owns 600 shares of the company’s stock worth $35,000 after acquiring an additional 325 shares during the period. Strategic Investment Solutions Inc. IL acquired a new position in CAVA Group during the third quarter worth about $36,000. Finally, Allworth Financial LP raised its position in CAVA Group by 57.4% in the fourth quarter. Allworth Financial LP now owns 650 shares of the company’s stock worth $38,000 after acquiring an additional 237 shares in the last quarter. 73.15% of the stock is currently owned by institutional investors and hedge funds.

About CAVA Group

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.