CAVA Group, Inc. (NYSE:CAVA) Stock Has Consensus Target Price of $88.62

CAVA Group, Inc. (NYSE:CAVA) has been given a consensus rating of “Moderate Buy” by the twenty-eight analysts that are covering the stock, MarketBeat.com reports. Ten research analysts have rated the stock with a hold rating, seventeen have given a buy rating and one has given a strong buy rating to the company. The average 12 month price target among brokerages that have issued a report on the stock in the last year is $87.35.

CAVA has been the subject of several recent analyst reports. Morgan Stanley raised shares of CAVA Group from an “equal weight” rating to an “overweight” rating and boosted their price objective for the company from $86.00 to $90.00 in a research note on Wednesday, July 15th. Guggenheim lowered their target price on shares of CAVA Group from $100.00 to $95.00 and set a “buy” rating on the stock in a research note on Thursday, August 13th. Roth Capital reiterated a “buy” rating and issued a $95.00 target price (down from $106.00) on shares of CAVA Group in a research note on Wednesday, August 12th. KeyCorp cut their price target on shares of CAVA Group from $95.00 to $80.00 and set an “overweight” rating for the company in a report on Friday. Finally, Royal Bank Of Canada reduced their price target on shares of CAVA Group from $95.00 to $85.00 and set an “outperform” rating for the company in a research report on Thursday, September 17th.

CAVA Group Stock Down 2.1%

CAVA stock opened at $53.52 on Thursday. The firm has a market capitalization of $6.25 billion, a PE ratio of 97.31, a PEG ratio of 4.14 and a beta of 1.80. CAVA Group has a twelve month low of $43.41 and a twelve month high of $98.79. The stock has a 50-day simple moving average of $58.02 and a two-hundred day simple moving average of $71.05.

CAVA Group (NYSE:CAVA) last announced its quarterly earnings results on Tuesday, August 11th. The company reported $0.19 earnings per share 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 for the quarter, compared to analysts’ expectations of $360.09 million. During the same period in the prior year, the business posted $0.16 earnings per share. The company’s revenue was up 31.3% on a year-over-year basis. On average, equities research analysts anticipate that CAVA Group will post 0.55 EPS for the current fiscal year.

CAVA Group declared that its board has authorized a stock repurchase program on Friday, September 18th that permits the company to buy back $100.00 million in outstanding shares. This repurchase authorization permits the company to buy up to 1.7% of its shares through open market purchases. Share repurchase programs are generally an indication that the company’s board believes its shares are undervalued.

Key Headlines Impacting CAVA Group

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

Insider Activity

In other CAVA Group news, insider Douglas Thompson acquired 6,500 shares of the company’s stock in a transaction that occurred on Monday, August 31st. The stock was bought at an average price of $66.52 per share, with a total value of $432,380.00. Following the completion of the purchase, the insider owned 19,371 shares of the company’s stock, valued at approximately $1,288,558.92. This represents a 50.50% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 6.70% of the company’s stock.

Hedge Funds Weigh In On CAVA Group

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

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.