CAVA Group (NYSE:CAVA) Stock Price Up 6.3% – What’s Next?

CAVA Group, Inc. (NYSE:CAVA)’s share price traded up 6.3% during mid-day trading on Tuesday . The company traded as high as $55.31 and last traded at $55.2530. 1,034,340 shares traded hands during trading, a decline of 69% from the average session volume of 3,378,113 shares. The stock had previously closed at $52.00.

Analyst Ratings Changes

A number of research firms have weighed in on CAVA. UBS Group upgraded CAVA Group from a “neutral” rating to a “buy” rating and upped their target price for the stock from $85.00 to $90.00 in a report on Wednesday, June 10th. Royal Bank Of Canada lowered their target price on CAVA Group from $95.00 to $85.00 and set an “outperform” rating for the company in a research note on Thursday, September 17th. Roth Capital reaffirmed a “buy” rating and issued a $95.00 price target (down from $106.00) on shares of CAVA Group in a research note on Wednesday, August 12th. Robert W. Baird upgraded CAVA Group to a “strong-buy” rating in a report on Monday, August 24th. Finally, Sanford C. Bernstein reissued an “outperform” rating on shares of CAVA Group in a research report on Wednesday, August 12th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and ten have assigned a Hold rating to the stock. According to data from MarketBeat, CAVA Group has a consensus rating of “Moderate Buy” and an average target price of $88.64.

CAVA Group Stock Performance

The stock has a 50-day moving average of $63.65 and a two-hundred day moving average of $75.71. The company has a market cap of $6.23 billion, a P/E ratio of 96.75, a price-to-earnings-growth ratio of 4.01 and a beta of 1.74.

CAVA Group (NYSE:CAVA) last announced 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 net margin of 4.82% and a return on equity of 8.28%. The company had revenue of $368.44 million for the quarter, compared to the consensus estimate of $360.09 million. During the same period in the prior year, the firm posted $0.16 EPS. CAVA Group’s revenue for the quarter was up 31.3% on a year-over-year basis. Research analysts predict that CAVA Group, Inc. will post 0.55 EPS for the current year.

CAVA Group announced that its Board of Directors has approved a share repurchase program on Friday, September 18th that authorizes the company to repurchase $100.00 million in shares. This repurchase authorization authorizes the company to repurchase up to 1.7% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling

In other news, insider Douglas Thompson bought 6,500 shares of the stock in a transaction on Monday, August 31st. The shares were bought at an average price of $66.52 per share, with a total value 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. The trade was a 50.50% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 6.70% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of CAVA. Wellington Altus USA Inc. purchased a new stake in CAVA Group in the 2nd quarter worth $113,000. Engineers Gate Manager LP purchased a new stake in CAVA Group during the second quarter valued at $670,000. NewEdge Advisors LLC lifted its position in CAVA Group by 5.3% during the second 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 purchased a new stake in shares of CAVA Group during the 2nd quarter valued at about $272,000. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in CAVA Group during the second quarter valued at approximately $1,711,000. Institutional investors 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.