Key Points
- Insider sale: CAVA Group insider Kelly Costanza sold 10,010 shares at an average price of $79.87, totaling about $799,499. The company said the sale was to cover tax withholding obligations tied to vested equity awards.
- Strong quarterly results: CAVA recently reported Q1 earnings of $0.20 per share, beating estimates of $0.17, while revenue rose 32.1% year over year to $438.27 million. The company also topped revenue expectations by a wide margin.
- Bullish analyst backdrop: Several analysts remained positive after earnings, including Argus upgrading CAVA to buy and firms such as Piper Sandler, Roth MKM, and TD Cowen reiterating buy ratings. The stock now has an average rating of Moderate Buy with a $93.19 average price target.
CAVA Group, Inc. (NYSE:CAVA - Get Free Report) CAO Adam David Phillips sold 5,181 shares of the stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $77.14, for a total transaction of $399,662.34. Following the completion of the sale, the chief accounting officer owned 9,505 shares in the company, valued at $733,215.70. This represents a 35.28% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website.
CAVA Group Price Performance
NYSE CAVA opened at $80.41 on Friday. CAVA Group, Inc. has a 1 year low of $43.41 and a 1 year high of $98.79. The stock has a market capitalization of $9.37 billion, a PE ratio of 154.63, a P/E/G ratio of 5.67 and a beta of 1.90. The company's 50 day simple moving average is $84.97 and its two-hundred day simple moving average is $69.73.
CAVA Group (NYSE:CAVA - Get Free Report) last posted its earnings results on Tuesday, May 19th. The company reported $0.20 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.17 by $0.03. CAVA Group had a net margin of 4.79% and a return on equity of 7.92%. The business had revenue of $438.27 million for the quarter, compared to analysts' expectations of $360.89 million. During the same period in the prior year, the company posted $0.22 EPS. The business's revenue for the quarter was up 32.1% compared to the same quarter last year. On average, research analysts anticipate that CAVA Group, Inc. will post 0.54 EPS for the current year.
CAVA Group News Summary
Here are the key news stories impacting CAVA Group this week:
- Positive Sentiment: Argus upgraded CAVA Group from hold to buy, reinforcing the optimistic post-earnings sentiment around the stock. Argus upgrade coverage
- Positive Sentiment: Analyst commentary continued to lean bullish, with Piper Sandler reaffirming a buy rating, Roth MKM reiterating buy, and TD Cowen maintaining a buy call. Piper Sandler coverage
- Positive Sentiment: Recent coverage highlighted strong Q1 results, including 9.7% same-restaurant sales growth and improved operating leverage, which supports the case for continued fundamental momentum. Seeking Alpha article
- Neutral Sentiment: DA Davidson raised its price target to $84 from $80 but kept a neutral rating, suggesting upside potential but also valuation caution. DA Davidson price target update
- Neutral Sentiment: Insider selling was disclosed by CAO Adam David Phillips and insider Kelly Costanza, though Costanza’s sale was tied to tax withholding on vesting equity awards, making the signal less negative than a discretionary sale. SEC filing
Hedge Funds Weigh In On CAVA Group
Several institutional investors and hedge funds have recently made changes to their positions in CAVA. Bison Wealth LLC bought a new position in shares of CAVA Group during the 4th quarter valued at $208,000. Goldman Sachs Group Inc. grew its holdings in shares of CAVA Group by 14.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 606,780 shares of the company's stock valued at $52,432,000 after purchasing an additional 75,828 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of CAVA Group by 17.3% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 236,622 shares of the company's stock valued at $20,447,000 after purchasing an additional 34,860 shares during the last quarter. Brown Advisory Inc. grew its holdings in shares of CAVA Group by 9.3% during the 2nd quarter. Brown Advisory Inc. now owns 2,979 shares of the company's stock valued at $251,000 after purchasing an additional 253 shares during the last quarter. Finally, Cresset Asset Management LLC grew its holdings in shares of CAVA Group by 20.3% during the 2nd quarter. Cresset Asset Management LLC now owns 9,165 shares of the company's stock valued at $772,000 after purchasing an additional 1,549 shares during the last quarter. Institutional investors own 73.15% of the company's stock.
Wall Street Analysts Forecast Growth
Several analysts have issued reports on CAVA shares. Guggenheim started coverage on shares of CAVA Group in a research note on Thursday, March 26th. They issued a "buy" rating and a $100.00 target price on the stock. Telsey Advisory Group increased their target price on shares of CAVA Group from $92.00 to $95.00 and gave the stock an "outperform" rating in a research note on Wednesday. Robert W. Baird increased their target price on shares of CAVA Group from $88.00 to $98.00 and gave the stock an "outperform" rating in a research note on Wednesday. Morgan Stanley increased their price target on shares of CAVA Group from $85.00 to $86.00 and gave the stock an "equal weight" rating in a report on Wednesday. Finally, Barclays increased their price target on shares of CAVA Group from $70.00 to $74.00 and gave the stock an "equal weight" rating in a report on Wednesday. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $93.19.
Check Out Our Latest Report on CAVA
CAVA Group Company Profile
(
Get Free Report)
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.
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