CAVA Group (NYSE:CAVA) Stock Price Target Cut by TD Cowen

CAVA Group (NYSE:CAVA) had its target price dropped by research analysts at TD Cowen from $85.00 to $78.00 in a research report issued on Wednesday, Benzinga reports. The firm presently has a “buy” rating on the stock. TD Cowen’s target price would suggest a potential upside of 35.27% from the stock’s previous close.

A number of other brokerages also recently issued reports on CAVA. DA Davidson lowered their price target on shares of CAVA Group from $84.00 to $75.00 and set a “neutral” rating on the stock in a report on Thursday, August 13th. Morgan Stanley upgraded shares of CAVA Group from an “equal weight” rating to an “overweight” rating and upped their price objective for the stock from $86.00 to $90.00 in a research report on Wednesday, July 15th. Northcoast Research raised shares of CAVA Group from a “sell” rating to a “neutral” rating in a research note on Thursday, August 13th. Weiss Ratings raised shares of CAVA Group from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, October 8th. Finally, Freedom Capital upgraded CAVA Group to a “hold” rating in a research report on Wednesday, July 1st. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and ten have assigned a Hold rating to the stock. According to MarketBeat.com, CAVA Group has a consensus rating of “Moderate Buy” and a consensus price target of $88.62.

CAVA Group Trading Down 0.4%

Shares of NYSE:CAVA opened at $57.66 on Wednesday. CAVA Group has a 12-month low of $43.41 and a 12-month high of $98.79. The business has a 50 day moving average of $59.10 and a two-hundred day moving average of $71.53. The company has a market capitalization of $6.74 billion, a PE ratio of 105.27, a PEG ratio of 4.48 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, topping analysts’ consensus estimates of $0.18 by $0.01. The business had revenue of $368.44 million for the quarter, compared to analysts’ expectations of $360.09 million. CAVA Group had a net margin of 4.82% and a return on equity of 8.28%. The business’s revenue was up 31.3% on a year-over-year basis. During the same quarter last year, the company earned $0.16 EPS. Equities research analysts predict that CAVA Group will post 0.55 earnings per share for the current fiscal year.

CAVA Group announced that its Board of Directors has initiated a stock repurchase plan on Friday, September 18th that allows the company to repurchase $100.00 million in outstanding shares. This buyback authorization allows the company to reacquire up to 1.7% of its stock through open market purchases. Share buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.

Insider Activity at CAVA Group

In related news, insider Douglas Thompson bought 6,500 shares of the business’s stock in a transaction on Monday, August 31st. The stock was acquired at an average cost of $66.52 per share, with a total value of $432,380.00. Following the purchase, the insider directly owned 19,371 shares of the company’s stock, valued at $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 SEC, which is available at the SEC website. Corporate insiders own 6.70% of the company’s stock.

Institutional Investors Weigh In On CAVA Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Ancora Advisors LLC acquired a new position in CAVA Group in the second quarter valued at about $27,000. FNY Investment Advisers LLC acquired a new stake in shares of CAVA Group during the second quarter valued at about $31,000. Philadelphia Investment Partners LLC acquired a new stake in shares of CAVA Group during the second quarter valued at about $33,000. CX Institutional acquired a new stake in shares of CAVA Group during the third quarter valued at about $26,000. Finally, Scarborough Advisors LLC purchased a new stake in shares of CAVA Group in the 1st quarter valued at approximately $54,000. Hedge funds and other institutional investors own 73.15% of the company’s stock.

About CAVA Group

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.