Melius Research Upgrades CAVA Group (NYSE:CAVA) to Buy

CAVA Group (NYSE:CAVA) was upgraded by investment analysts at Melius Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Thursday, Marketbeat Ratings reports. The firm currently has a $95.00 price target on the stock. Melius Research’s target price suggests a potential upside of 77.08% from the stock’s previous close.

Several other equities research analysts also recently commented on the company. Citigroup reissued a “buy” rating on shares of CAVA Group in a report on Tuesday, July 28th. Seaport Research Partners started coverage on shares of CAVA Group in a research report on Wednesday, September 16th. They issued a “buy” rating and a $58.00 price target for the company. Roth Capital restated a “buy” rating and set a $95.00 price objective (down from $106.00) on shares of CAVA Group in a report on Wednesday, August 12th. UBS Group upgraded shares of CAVA Group from a “neutral” rating to a “buy” rating and lifted their price objective for the company from $85.00 to $90.00 in a report on Wednesday, June 10th. Finally, Robert W. Baird upgraded shares of CAVA Group to a “strong-buy” rating in a report on Monday, August 24th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and ten have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $88.88.

CAVA Group Stock Up 3.0%

Shares of NYSE CAVA traded up $1.58 during mid-day trading on Thursday, reaching $53.65. 852,031 shares of the company were exchanged, compared to its average volume of 3,375,308. The stock has a market capitalization of $6.27 billion, a PE ratio of 97.57, a PEG ratio of 4.08 and a beta of 1.80. The company’s 50 day moving average price is $60.69 and its 200 day moving average price is $73.18. CAVA Group has a 52 week low of $43.41 and a 52 week high of $98.79.

CAVA Group (NYSE:CAVA) last issued its earnings results 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 business had revenue of $368.44 million during the quarter, compared to analyst estimates of $360.09 million. During the same quarter in the prior year, the firm earned $0.16 earnings per share. CAVA Group’s revenue for the quarter was up 31.3% on a year-over-year basis. On average, sell-side analysts predict that CAVA Group will post 0.55 earnings per share for the current year.

CAVA Group declared that its Board of Directors has authorized a stock buyback plan on Friday, September 18th that allows the company to repurchase $100.00 million in shares. This repurchase authorization allows the company to reacquire up to 1.7% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s leadership believes its shares are undervalued.

Insider Transactions at CAVA Group

In other CAVA Group news, insider Douglas Thompson acquired 6,500 shares of the company’s stock in a transaction that occurred on Monday, August 31st. The stock was bought at an average price of $66.52 per share, with a total value of $432,380.00. Following the purchase, the insider owned 19,371 shares in the company, valued at approximately $1,288,558.92. The trade was a 50.50% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 6.70% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On CAVA Group

Several large investors have recently modified their holdings of the stock. Moody National Bank Trust Division increased its stake in shares of CAVA Group by 45.8% during the 3rd quarter. Moody National Bank Trust Division now owns 31,048 shares of the company’s stock worth $1,680,000 after purchasing an additional 9,750 shares in the last quarter. Norman Fields Gottscho Capital Management LLC increased its stake in CAVA Group by 197.9% in the 3rd quarter. Norman Fields Gottscho Capital Management LLC now owns 102,000 shares of the company’s stock worth $5,518,000 after purchasing an additional 67,763 shares in the last quarter. CX Institutional purchased a new position in shares of CAVA Group during the third quarter valued at $26,000. Wellington Altus USA Inc. purchased a new position in CAVA Group in the second quarter valued at about $113,000. Finally, Engineers Gate Manager LP bought a new stake in CAVA Group in the second quarter worth $670,000. Hedge funds and other institutional investors own 73.15% of the company’s stock.

CAVA Group Company Profile

CAVA Group, Inc is a fast-casual restaurant company focused on Mediterranean-inspired food and hospitality. Its restaurants offer customizable meals such as grain bowls, salads, pitas and dips, with ingredients and flavors influenced by the cuisines of the Mediterranean region. The company also provides digital ordering, delivery and catering services through its restaurant platform.

CAVA began as a Washington, DC-area restaurant concept and has expanded its operations across the United States.