CAVA Group (NYSE:CAVA) Shares Up 5.4% – Time to Buy?

Shares of CAVA Group, Inc. (NYSE:CAVA) traded up 5.4% during mid-day trading on Wednesday. The company traded as high as $55.31 and last traded at $54.68. Approximately 515,143 shares traded hands during mid-day trading, a decline of 85% from the average daily volume of 3,338,653 shares. The stock had previously closed at $51.86.

Analyst Ratings Changes

CAVA has been the topic of a number of recent analyst reports. Sanford C. Bernstein restated an “outperform” rating on shares of CAVA Group in a report on Wednesday, August 12th. Freedom Capital raised CAVA Group to a “hold” rating in a research report on Wednesday, July 1st. Morgan Stanley upgraded CAVA Group from an “equal weight” rating to an “overweight” rating and upped their target price for the company from $86.00 to $90.00 in a research note on Wednesday, July 15th. JPMorgan Chase & Co. lowered their target price on shares of CAVA Group from $85.00 to $80.00 and set an “overweight” rating on the stock in a report on Friday, September 18th. Finally, Robert W. Baird raised shares of CAVA Group to a “strong-buy” rating in a research note on Monday, August 24th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and ten have issued a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $87.35.

CAVA Group Price Performance

The business’s 50-day moving average is $57.46 and its 200 day moving average is $71.53. The firm has a market capitalization of $6.55 billion, a P/E ratio of 102.55 and a beta of 1.80.

CAVA Group (NYSE:CAVA) last issued its quarterly earnings data on Tuesday, August 11th. The company reported $0.19 EPS for the quarter, beating the consensus estimate of $0.18 by $0.01. The company had revenue of $368.44 million during the quarter, compared to the consensus estimate of $360.09 million. CAVA Group’s revenue for the quarter was up 31.3% on a year-over-year basis. During the same period in the previous year, the company earned $0.16 EPS. Analysts anticipate that CAVA Group, Inc. will post 0.55 EPS for the current fiscal year.

CAVA Group announced that its Board of Directors has initiated a share repurchase program on Friday, September 18th that permits the company to buy back $100 million in outstanding shares. This repurchase authorization permits the company to reacquire up to 1.7% of its stock through open market purchases. Share repurchase programs are typically a sign that the company’s management believes its stock is undervalued.

Insider Buying and Selling at CAVA Group

In other CAVA Group news, insider Douglas Thompson purchased 6,500 shares of the stock in a transaction that occurred on Monday, August 31st. The stock was bought at an average cost of $66.52 per share, with a total value of $432,380.00. Following the transaction, the insider directly owned 19,371 shares in the company, valued at approximately $1,288,558.92. The trade was a 50.50% increase in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Company insiders own 6.70% of the company’s stock.

Hedge Funds Weigh In On CAVA Group

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. D.A. Davidson & CO. grew its stake in CAVA Group by 4.3% during the 3rd quarter. D.A. Davidson & CO. now owns 12,060 shares of the company’s stock worth $652,000 after buying an additional 497 shares during the last quarter. Signaturefd LLC lifted its stake in shares of CAVA Group by 735.1% in the third quarter. Signaturefd LLC now owns 2,330 shares of the company’s stock valued at $126,000 after purchasing an additional 2,051 shares during the period. Brookstone Capital Management grew its holdings in shares of CAVA Group by 6.7% in the 3rd quarter. Brookstone Capital Management now owns 16,952 shares of the company’s stock worth $917,000 after acquiring an additional 1,065 shares during the period. E. Ohman J or Asset Management AB increased its position in shares of CAVA Group by 30.7% in the third quarter. E. Ohman J or Asset Management AB now owns 61,922 shares of the company’s stock valued at $3,350,000 after buying an additional 14,552 shares in the last quarter. Finally, Counterpoint Mutual Funds LLC lifted its holdings in shares of CAVA Group by 38.7% in the third quarter. Counterpoint Mutual Funds LLC now owns 9,703 shares of the company’s stock valued at $525,000 after purchasing an additional 2,709 shares in the last quarter. Institutional investors own 73.15% of the company’s stock.

CAVA Group Company Profile

CAVA Group, Inc operates CAVA, a fast-casual restaurant brand serving Mediterranean-inspired food in the United States. Its menu includes customizable bowls and pitas, salads, dips, spreads, grilled proteins, and other Mediterranean dishes, with options designed to accommodate a range of dietary preferences.

The company’s restaurants generally use an assembly-line format that allows customers to build meals from a selection of ingredients and sauces. CAVA also offers its branded dips, spreads, and other products through select grocery and retail channels, extending the brand beyond its restaurant locations.

CAVA was founded in 2010 by Dimitri Moshovitis, Ike Grigoropoulos, and Ted Xenohristos.