CAVA Group (NYSE:CAVA) Stock Breaks Above 50-Day Moving Average – Time to Sell?

CAVA Group, Inc. (NYSE:CAVA) shares crossed above its 50 day moving average during trading on Thursday. The stock has a 50 day moving average of $56.93 and traded as high as $59.82. CAVA Group shares last traded at $59.2080, with a volume of 3,462,590 shares traded.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the stock. Weiss Ratings upgraded shares of CAVA Group from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, October 8th. TD Cowen dropped their price target on CAVA Group from $85.00 to $78.00 and set a “buy” rating on the stock in a research report on Wednesday, October 21st. Robert W. Baird upgraded CAVA Group to a “strong-buy” rating in a research note on Monday, August 24th. Melius Research raised CAVA Group from a “hold” rating to a “buy” rating and set a $95.00 price objective on the stock in a report on Thursday, October 8th. Finally, Sanford C. Bernstein reaffirmed an “outperform” rating on shares of CAVA Group in a research report on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and ten have issued a Hold rating to the company’s stock. According to MarketBeat.com, CAVA Group has a consensus rating of “Moderate Buy” and an average target price of $86.81.

CAVA Group Price Performance

The stock has a market cap of $6.86 billion, a P/E ratio of 106.71, a PEG ratio of 4.72 and a beta of 1.80. The business’s 50 day simple moving average is $56.66 and its 200 day simple moving average is $71.34.

CAVA Group (NYSE:CAVA) last posted its earnings results on Tuesday, August 11th. The company reported $0.19 earnings per share for the quarter, topping 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 business had revenue of $368.44 million for the quarter, compared to analyst estimates of $360.09 million. During the same quarter in the prior year, the firm earned $0.16 EPS. The firm’s quarterly revenue was up 31.3% compared to the same quarter last year. Research analysts predict that CAVA Group, Inc. will post 0.55 earnings per share for the current year.

CAVA Group declared that its board has initiated a share buyback plan on Friday, September 18th that allows the company to repurchase $100 million in shares. This repurchase authorization allows the company to repurchase up to 1.7% of its shares through open market purchases. Share repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

Insider Activity at CAVA Group

In related news, insider Douglas Thompson purchased 6,500 shares of the stock in a transaction that occurred on Monday, August 31st. The stock was acquired at an average price of $66.52 per share, with a total value of $432,380.00. Following the completion of the acquisition, the insider directly owned 19,371 shares in the company, valued at approximately $1,288,558.92. This trade represents a 50.50% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 6.70% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in CAVA. Modern Wealth Management LLC raised its holdings in shares of CAVA Group by 4.2% in the 1st quarter. Modern Wealth Management LLC now owns 3,907 shares of the company’s stock valued at $313,000 after purchasing an additional 158 shares during the period. Concurrent Investment Advisors LLC lifted its holdings in shares of CAVA Group by 7.4% during the second quarter. Concurrent Investment Advisors LLC now owns 4,356 shares of the company’s stock worth $342,000 after buying an additional 299 shares in the last quarter. Bogart Wealth LLC raised its stake in CAVA Group by 24.8% in the 1st quarter. Bogart Wealth LLC now owns 1,509 shares of the company’s stock worth $122,000 after purchasing an additional 300 shares in the last quarter. Ancora Advisors LLC bought a new stake in shares of CAVA Group in the second quarter valued at approximately $27,000. Finally, EverSource Wealth Advisors LLC lifted its position in shares of CAVA Group by 60.7% during the 1st quarter. EverSource Wealth Advisors LLC now owns 1,040 shares of the company’s stock valued at $84,000 after acquiring an additional 393 shares during the period. 73.15% of the stock is currently owned by institutional investors and hedge funds.

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.