KeyCorp Cuts CAVA Group (NYSE:CAVA) Price Target to $95.00

CAVA Group (NYSE:CAVA) had its target price decreased by KeyCorp from $110.00 to $95.00 in a research report report published on Wednesday, Marketbeat Ratings reports. KeyCorp currently has an overweight rating on the stock.

Several other equities research analysts have also recently weighed in on the company. Argus set a $92.00 price objective on CAVA Group in a research note on Friday, May 22nd. Barclays lifted their target price on CAVA Group from $70.00 to $74.00 and gave the stock an “equal weight” rating in a report on Wednesday, May 20th. Northcoast Research upgraded CAVA Group to a “strong sell” rating in a report on Tuesday, April 21st. Weiss Ratings downgraded CAVA Group from a “hold (c)” rating to a “hold (c-)” rating in a research report on Friday, July 24th. Finally, Wall Street Zen upgraded CAVA Group from a “sell” rating to a “hold” rating in a research report on Sunday, May 24th. Seventeen equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $89.44.

CAVA Group Stock Up 3.2%

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

CAVA Group (NYSE:CAVA) last announced its 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. CAVA Group had a net margin of 4.82% and a return on equity of 8.28%. 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 company earned $0.16 EPS. The business’s revenue was up 31.3% compared to the same quarter last year. On average, analysts expect that CAVA Group will post 0.54 earnings per share for the current year.

Insiders Place Their Bets

In other news, CAO Adam David Phillips sold 5,181 shares of the company’s stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $77.14, for a total transaction of $399,662.34. Following the transaction, the chief accounting officer directly owned 9,505 shares of the company’s stock, valued at approximately $733,215.70. This represents a 35.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Brett Schulman sold 33,174 shares of the company’s stock in a transaction that occurred on 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 transaction, the chief executive officer owned 798,669 shares in the company, valued at $71,424,968.67. The trade was a 3.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 82,703 shares of company stock worth $7,249,579. Insiders own 6.70% of the company’s stock.

Hedge Funds Weigh In On CAVA Group

Hedge funds have recently made changes to their positions in the company. Ancora Advisors LLC purchased a new position in shares of CAVA Group in the second quarter worth about $27,000. FNY Investment Advisers LLC acquired a new stake in shares of CAVA Group during the second quarter worth about $31,000. Los Angeles Capital Management LLC purchased a new stake in CAVA Group in the fourth quarter valued at approximately $25,000. TD Private Client Wealth LLC increased its holdings in CAVA Group by 118.2% in 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 during the period. Finally, EverSource Wealth Advisors LLC increased its holdings in CAVA Group by 115.7% in the 4th quarter. EverSource Wealth Advisors LLC now owns 647 shares of the company’s stock worth $38,000 after buying an additional 347 shares during the period. 73.15% of the stock is owned by institutional investors and hedge funds.

Key CAVA Group News

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.