CAVA Group (NYSE:CAVA) Upgraded to Strong-Buy at Seaport Research Partners

CAVA Group (NYSE:CAVA) was upgraded by equities research analysts at Seaport Research Partners to a “strong-buy” rating in a research report issued on Tuesday, Zacks reports.

Several other research firms have also commented on CAVA. BMO Capital Markets set a $100.00 target price on CAVA Group in a research note on Wednesday, May 20th. Guggenheim dropped their price objective on shares of CAVA Group from $100.00 to $95.00 and set a “buy” rating for the company in a research note on Thursday, August 13th. Wolfe Research increased their price objective on shares of CAVA Group from $79.00 to $82.00 and gave the stock an “outperform” rating in a report on Wednesday, August 12th. Compass Point upgraded shares of CAVA Group to a “neutral” rating in a report on Monday. Finally, Sanford C. Bernstein reaffirmed an “outperform” rating on shares of CAVA Group in a research note on Wednesday, August 12th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and ten have given a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $89.44.

CAVA Group Trading Down 0.4%

NYSE:CAVA opened at $49.77 on Tuesday. CAVA Group has a 12-month low of $43.41 and a 12-month high of $98.79. The firm has a market cap of $5.81 billion, a price-to-earnings ratio of 90.49, a price-to-earnings-growth ratio of 3.88 and a beta of 1.74. The company’s 50-day moving average is $64.83 and its two-hundred day moving average is $76.30.

CAVA Group (NYSE:CAVA) last posted its quarterly earnings data on Tuesday, August 11th. The company reported $0.19 earnings per share for the quarter, beating analysts’ consensus estimates 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 during the quarter, compared to analyst estimates of $360.09 million. During the same quarter in the previous year, the business posted $0.16 earnings per share. The company’s revenue was up 31.3% on a year-over-year basis. On average, equities research analysts forecast that CAVA Group will post 0.55 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Douglas Thompson bought 6,500 shares of the firm’s stock in a transaction dated Monday, August 31st. The stock was acquired at an average price of $66.52 per share, for a total transaction of $432,380.00. Following the acquisition, the insider owned 19,371 shares of the company’s stock, valued at $1,288,558.92. This trade represents a 50.50% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Insiders own 6.70% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Oppenheimer Asset Management Inc. bought a new stake in shares of CAVA Group in the second quarter worth $1,551,000. Trillium Asset Management LLC acquired a new stake in shares of CAVA Group during the second quarter worth $3,279,000. Prospect Financial Services LLC bought a new position in CAVA Group in the second quarter worth about $1,348,000. Connor Clark & Lunn Investment Management Ltd. acquired a new position in CAVA Group in the second quarter valued at approximately $6,833,000. Finally, Prime Capital Management Co Ltd grew its holdings in shares of CAVA Group by 90.6% during the fourth quarter. Prime Capital Management Co Ltd now owns 1,031,630 shares of the company’s stock valued at $60,546,000 after purchasing an additional 490,300 shares during the last quarter. 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: Telsey Advisory maintained its Buy rating, signaling continued confidence in CAVA’s long-term growth prospects. Telsey Advisory maintains Buy rating
• Positive Sentiment: One analyst characterized the selloff as a potential buying opportunity, while GuruFocus’ valuation analysis said CAVA may be undervalued after the decline. These views could attract dip buyers. Analyst says buy the dip GuruFocus valuation analysis
• Positive Sentiment: CAVA’s loyalty membership base is reportedly expanding faster than its restaurant count, with traffic initiatives and menu innovation supporting customer engagement. CAVA loyalty growth

About CAVA Group

CAVA Group, Inc is a U.S.-based restaurant company that operates the CAVA fast-casual Mediterranean restaurant brand. Its restaurants offer customizable meals, including grain bowls, salads, pitas, dips, spreads and sides made with Mediterranean-inspired ingredients and flavors. Customers can order meals in restaurants, through digital channels and for catering.

The company’s menu is centered on a build-your-own format, allowing guests to select proteins, grains, greens, toppings, sauces and dips.