CAVA Group (NYSE:CAVA) Cut to “Sell” at Wall Street Zen

Wall Street Zen lowered shares of CAVA Group (NYSE:CAVA) from a hold rating to a sell rating in a research note published on Saturday,Wall Street Zen reports.

Several other research firms have also commented on CAVA. Royal Bank Of Canada cut their price objective on CAVA Group from $85.00 to $80.00 and set an “outperform” rating on the stock in a research report on Thursday. Northcoast Research upgraded CAVA Group from a “sell” rating to a “neutral” rating in a research note on Thursday, August 13th. Guggenheim decreased their target price on CAVA Group from $100.00 to $95.00 and set a “buy” rating for the company in a research report on Thursday, August 13th. Wolfe Research increased their target price on CAVA Group from $79.00 to $82.00 and gave the company an “outperform” rating in a research note on Wednesday, August 12th. Finally, Weiss Ratings upgraded CAVA Group from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and ten have issued a Hold rating to the company. According to MarketBeat, CAVA Group has an average rating of “Moderate Buy” and an average price target of $83.81.

CAVA Group Stock Up 5.4%

CAVA Group stock opened at $62.32 on Friday. The firm has a fifty day moving average of $55.63 and a 200-day moving average of $71.07. CAVA Group has a 52-week low of $43.41 and a 52-week high of $98.79. The firm has a market capitalization of $7.28 billion, a P/E ratio of 114.78, a PEG ratio of 4.94 and a beta of 1.75.

CAVA Group (NYSE:CAVA) last posted its earnings results on Wednesday, November 4th. The company reported $0.11 earnings per share for the quarter, missing the consensus estimate of $0.12 by ($0.01). CAVA Group had a net margin of 4.50% and a return on equity of 7.98%. The business had revenue of $356.44 million for the quarter, compared to analyst estimates of $358.40 million. During the same quarter in the previous year, the firm posted $0.12 EPS. The business’s revenue was up 21.0% compared to the same quarter last year. On average, research analysts expect that CAVA Group will post 0.54 EPS for the current fiscal year.

CAVA Group declared that its Board of Directors has authorized a stock repurchase plan on Friday, September 18th that permits the company to repurchase $100 million in shares. This repurchase authorization permits the company to purchase up to 1.7% of its shares through open market purchases. Stock repurchase plans are often a sign that the company’s board believes its shares are undervalued.

Insider Buying and Selling at CAVA Group

In other news, insider Douglas Thompson purchased 6,500 shares of the stock in a transaction that occurred on 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 acquisition, the insider owned 19,371 shares in the company, valued at approximately $1,288,558.92. This trade represents a 50.50% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 6.70% of the company’s stock.

Hedge Funds Weigh In On CAVA Group

A number of institutional investors have recently added to or reduced their stakes in CAVA. BlackRock Inc. purchased a new position in CAVA Group in the 2nd quarter valued at about $757,013,000. Wellington Management Group LLP increased its position 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 acquiring an additional 697,699 shares during the last quarter. Primecap Management Co. CA purchased a new stake in shares of CAVA Group during the second quarter worth about $92,956,000. William Blair Investment Management LLC acquired a new position in shares of CAVA Group in the second quarter worth about $89,861,000. Finally, Prime Capital Management Co Ltd acquired a new position in shares of CAVA Group in the second quarter worth about $80,962,000. Institutional investors and hedge funds own 73.15% of the company’s stock.

CAVA Group Company Profile

CAVA Group operates CAVA, a fast-casual restaurant brand focused on Mediterranean-inspired food. Its menu includes customizable bowls, pitas and salads, along with dips, spreads, sides and beverages.

The business began in 2006 with a Mediterranean restaurant in Rockville, Maryland, founded by childhood friends Brett Schulman, Dimitri Moshovitis and Ted Xenohristos. CAVA has since grown into a restaurant chain serving customers in multiple U.S. states.

Co-founder Brett Schulman serves as CAVA Group’s chief executive officer.