Analysts Set CAVA Group, Inc. (NYSE:CAVA) Price Target at $92.46

Shares of CAVA Group, Inc. (NYSE:CAVA) have received an average rating of “Moderate Buy” from the twenty-six research firms that are presently covering the stock, MarketBeat reports. Nine equities research analysts have rated the stock with a hold recommendation and seventeen have issued a buy recommendation on the company. The average twelve-month target price among brokerages that have covered the stock in the last year is $89.44.

CAVA has been the topic of several analyst reports. Stifel Nicolaus lifted their target price on shares of CAVA Group from $90.00 to $105.00 and gave the stock a “buy” rating in a research report on Wednesday, May 20th. UBS Group upgraded shares of CAVA Group from a “neutral” rating to a “buy” rating and upped their price target for the company from $85.00 to $90.00 in a research report on Wednesday, June 10th. Argus set a $92.00 price objective on shares of CAVA Group in a research note on Friday, May 22nd. Roth Capital reaffirmed a “buy” rating and issued a $95.00 price objective (down from $106.00) on shares of CAVA Group in a research note on Wednesday. Finally, Piper Sandler lifted their price objective on shares of CAVA Group from $85.00 to $92.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 20th.

CAVA Group Trading Up 3.2%

Shares of CAVA opened at $74.46 on Friday. The business’s 50-day moving average price is $73.07 and its 200 day moving average price is $76.85. The stock has a market capitalization of $8.70 billion, a P/E ratio of 135.38, a P/E/G ratio of 5.00 and a beta of 1.74. CAVA Group has a 1-year low of $43.41 and a 1-year high of $98.79.

CAVA Group (NYSE:CAVA) last posted its quarterly earnings data on Tuesday, August 11th. The company reported $0.19 earnings per share (EPS) for the quarter, topping 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 the consensus estimate of $360.09 million. During the same quarter in the previous year, the company earned $0.16 EPS. The business’s revenue for the quarter was up 31.3% compared to the same quarter last year. On average, research analysts predict that CAVA Group will post 0.54 earnings per share for the current year.

CAVA Group News Roundup

Here are the key news stories impacting CAVA Group this week:

• Positive Sentiment: Second-quarter results exceeded expectations, with approximately 9% same-restaurant sales growth, continued traffic recovery, and revenue and earnings above consensus. Full-year guidance was maintained, suggesting management remains confident in the growth outlook. CAVA Earnings: The Easiest Comp of the Year Meets a Tough Valuation
• Positive Sentiment: Analyst sentiment provided additional support. Roth Capital reiterated a Buy rating, TD Cowen issued a Buy, RBC indicated further upside, and Northcoast Research upgraded CAVA from Sell to Neutral. Roth Capital Reiterates Buy Rating for CAVA Group CAVA Group Gets a Buy from TD Cowen
• Neutral Sentiment: The earnings reaction has renewed debate over whether mid-single-digit comparable-sales growth can justify CAVA’s elevated valuation. With a high earnings multiple, investors may demand sustained rapid expansion and margin improvement.
• Negative Sentiment: Operating margins declined during the quarter, and KeyCorp issued a pessimistic forecast. These concerns could limit further gains if growth slows or profitability fails to scale. KeyCorp Issues Pessimistic Forecast for CAVA Group Stock Price
• Negative Sentiment: A broader cyclospora outbreak and salmonella flare-up are weighing on restaurant-industry food-safety perceptions and may reduce dining-out activity. No company-specific connection to CAVA was identified, but the issue represents a potential sector-level risk.

Insider Buying and Selling

In other news, CAO Adam David Phillips sold 757 shares of the firm’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $89.43, for a total value of $67,698.51. Following the completion of the sale, the chief accounting officer owned 6,848 shares of the company’s stock, valued at $612,416.64. This trade represents a 9.95% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Theodoros Xenohristos sold 3,252 shares of CAVA Group stock in a transaction on Monday, June 15th. The shares were sold at an average price of $89.43, for a total value of $290,826.36. Following the transaction, the insider owned 324,630 shares in the company, valued at $29,031,660.90. This represents a 0.99% decrease in their position. 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. Over the last three months, insiders have sold 82,703 shares of company stock valued at $7,249,579. 6.70% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On CAVA Group

A number of institutional investors have recently bought and sold shares of CAVA. Los Angeles Capital Management LLC acquired a new position in shares of CAVA Group in the 4th quarter valued at about $25,000. Ancora Advisors LLC purchased a new stake in shares of CAVA Group in the second quarter worth approximately $27,000. FNY Investment Advisers LLC purchased a new stake in shares of CAVA Group in the second quarter worth approximately $31,000. TD Private Client Wealth LLC boosted its holdings in shares of CAVA Group by 118.2% during the fourth quarter. TD Private Client Wealth LLC now owns 600 shares of the company’s stock worth $35,000 after purchasing an additional 325 shares during the period. Finally, Allworth Financial LP boosted its holdings in shares of CAVA Group by 57.4% during the fourth quarter. Allworth Financial LP now owns 650 shares of the company’s stock worth $38,000 after purchasing an additional 237 shares during the period. 73.15% of the stock is currently owned by institutional investors and hedge funds.

About CAVA Group

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.