CAVA Group (NYSE:CAVA) Shares Down 6% – Should You Sell?

Shares of CAVA Group, Inc. (NYSE:CAVA) fell 6% during mid-day trading on Thursday . The company traded as low as $77.58 and last traded at $77.2790. 1,547,473 shares traded hands during mid-day trading, a decline of 55% from the average session volume of 3,420,056 shares. The stock had previously closed at $82.20.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on CAVA. Guggenheim began coverage on shares of CAVA Group in a research note on Thursday, March 26th. They issued a “buy” rating and a $100.00 price objective on the stock. Benchmark raised their price objective on shares of CAVA Group from $80.00 to $110.00 and gave the company a “buy” rating in a research note on Monday, April 20th. Argus set a $92.00 price objective on shares of CAVA Group in a research note on Friday, May 22nd. DA Davidson raised their price objective on shares of CAVA Group from $80.00 to $84.00 and gave the company a “neutral” rating in a research note on Thursday, May 21st. Finally, Northcoast Research raised shares of CAVA Group to a “strong sell” rating in a research note on Tuesday, April 21st. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $93.19.

CAVA Group Trading Down 5.4%

The company has a market cap of $9.06 billion, a price-to-earnings ratio of 149.70, a price-to-earnings-growth ratio of 5.51 and a beta of 1.90. The firm’s fifty day moving average price is $84.84 and its 200-day moving average price is $70.51.

CAVA Group (NYSE:CAVA) last posted its quarterly earnings data on Tuesday, May 19th. The company reported $0.20 EPS for the quarter, beating the consensus estimate of $0.17 by $0.03. The business had revenue of $438.27 million for the quarter, compared to analysts’ expectations of $360.89 million. CAVA Group had a net margin of 4.79% and a return on equity of 7.92%. The firm’s revenue was up 32.1% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.22 EPS. As a group, research analysts anticipate that CAVA Group, Inc. will post 0.54 EPS for the current year.

Insider Activity at CAVA Group

In related news, insider Theodoros Xenohristos sold 9,044 shares of the business’s stock in a transaction on Monday, May 11th. The shares were sold at an average price of $79.75, for a total value of $721,259.00. Following the sale, the insider directly owned 327,882 shares of the company’s stock, valued at approximately $26,148,589.50. The trade was a 2.68% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Kelly Costanza sold 10,010 shares of the business’s stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $79.87, for a total transaction of $799,498.70. Following the completion of the sale, the insider directly owned 113,850 shares in the company, valued at $9,093,199.50. This represents a 8.08% 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 ninety days, insiders have sold 24,235 shares of company stock valued at $1,920,420. 6.70% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On CAVA Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Cornerstone Planning Group LLC lifted its position in CAVA Group by 378.7% during the 3rd quarter. Cornerstone Planning Group LLC now owns 450 shares of the company’s stock worth $27,000 after buying an additional 356 shares in the last quarter. Los Angeles Capital Management LLC bought a new stake in CAVA Group during the 4th quarter worth about $25,000. Harbor Investment Advisory LLC lifted its position in CAVA Group by 347.8% during the 4th quarter. Harbor Investment Advisory LLC now owns 515 shares of the company’s stock worth $30,000 after buying an additional 400 shares in the last quarter. Strategic Investment Solutions Inc. IL bought a new stake in CAVA Group during the 3rd quarter worth about $36,000. Finally, TD Private Client Wealth LLC lifted its position in CAVA Group by 118.2% during the 4th quarter. TD Private Client Wealth LLC now owns 600 shares of the company’s stock worth $35,000 after buying an additional 325 shares in the last quarter. 73.15% of the stock is owned by institutional investors.

CAVA Group Company Profile

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.