CAVA Group’s (CAVA) “Buy” Rating Reiterated at Roth Capital

Roth Capital reiterated their buy rating on shares of CAVA Group (NYSE:CAVA) in a report released on Wednesday morning,Benzinga reports. The brokerage currently has a $95.00 price target on the stock, down from their previous price target of $106.00.

A number of other research firms have also weighed in on CAVA. Argus set a $92.00 price target on shares of CAVA Group in a report on Friday, May 22nd. Wolfe Research increased their price target on shares of CAVA Group from $79.00 to $82.00 and gave the stock an “outperform” rating in a research report on Wednesday. Wall Street Zen upgraded CAVA Group from a “sell” rating to a “hold” rating in a research note on Sunday, May 24th. Barclays boosted their price objective on CAVA Group from $70.00 to $74.00 and gave the company an “equal weight” rating in a report on Wednesday, May 20th. Finally, Piper Sandler upped their price objective on CAVA Group from $85.00 to $92.00 and gave the company an “overweight” rating in a research note on Wednesday, May 20th. Seventeen research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $89.44.

CAVA Group Stock Up 3.2%

Shares of NYSE CAVA opened at $74.46 on Wednesday. The stock has a market capitalization of $8.70 billion, a PE ratio of 135.38, a P/E/G ratio of 5.00 and a beta of 1.74. The firm has a fifty day moving average of $73.07 and a 200-day moving average of $76.85. CAVA Group has a 52-week low of $43.41 and a 52-week high of $98.79.

CAVA Group (NYSE:CAVA) last announced its quarterly earnings results on Tuesday, August 11th. The company reported $0.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.18 by $0.01. The firm had revenue of $368.44 million during the quarter, compared to the consensus estimate of $360.09 million. CAVA Group had a return on equity of 8.28% and a net margin of 4.82%.The firm’s quarterly revenue was up 31.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.16 EPS. Equities research analysts expect that CAVA Group will post 0.54 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Brett Schulman sold 33,174 shares of the business’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $89.43, for a total transaction of $2,966,750.82. Following the completion of the sale, the chief executive officer owned 798,669 shares of the company’s stock, valued at $71,424,968.67. This represents a 3.99% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Karen Kochevar sold 10,000 shares of the stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $90.00, for a total transaction of $900,000.00. Following the sale, the director owned 3,074 shares in the company, valued at approximately $276,660. This trade represents a 76.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 82,703 shares of company stock worth $7,249,579. Corporate insiders own 6.70% of the company’s stock.

Institutional Investors Weigh In On CAVA Group

Hedge funds and other institutional investors have recently modified their holdings of the stock. Bison Wealth LLC bought a new position in shares of CAVA Group in the fourth quarter valued at approximately $208,000. Goldman Sachs Group Inc. lifted its holdings in CAVA Group by 14.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 606,780 shares of the company’s stock valued at $52,432,000 after acquiring an additional 75,828 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in CAVA Group by 17.3% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 236,622 shares of the company’s stock worth $20,447,000 after buying an additional 34,860 shares in the last quarter. Brown Advisory Inc. lifted its holdings in shares of CAVA Group by 9.3% during the second quarter. Brown Advisory Inc. now owns 2,979 shares of the company’s stock valued at $251,000 after purchasing an additional 253 shares during the last quarter. Finally, Cresset Asset Management LLC lifted its holdings in shares of CAVA Group by 20.3% during the second quarter. Cresset Asset Management LLC now owns 9,165 shares of the company’s stock valued at $772,000 after purchasing an additional 1,549 shares during the last quarter. 73.15% of the stock is currently owned by institutional investors.

Trending Headlines about CAVA Group

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.

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.