CAVA Group (NYSE:CAVA) Stock Price Target Cut by KeyCorp

CAVA Group (NYSE:CAVA) had its price objective dropped by stock analysts at KeyCorp from $95.00 to $80.00 in a research note issued on Friday, Benzinga reports. The firm presently has an “overweight” rating on the stock. KeyCorp‘s price objective indicates a potential upside of 46.57% from the stock’s current price.

CAVA has been the subject of several other research reports. Citigroup dropped their price target on shares of CAVA Group from $79.00 to $66.00 and set a “neutral” rating for the company in a research report on Thursday. Morgan Stanley raised shares of CAVA Group from an “equal weight” rating to an “overweight” rating and raised their price target for the stock from $86.00 to $90.00 in a report on Wednesday, July 15th. Melius Research upgraded shares of CAVA Group from a “hold” rating to a “buy” rating and set a $95.00 price objective on the stock in a research report on Thursday, October 8th. Wolfe Research upped their price objective on shares of CAVA Group from $79.00 to $82.00 and gave the company an “outperform” rating in a research note on Wednesday, August 12th. Finally, TD Cowen dropped their target price on shares of CAVA Group from $85.00 to $78.00 and set a “buy” rating for the company in a report on Wednesday. One 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 company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $87.35.

CAVA Group Stock Performance

NYSE:CAVA opened at $54.58 on Friday. The firm has a market cap of $6.38 billion, a PE ratio of 99.24, a price-to-earnings-growth ratio of 4.26 and a beta of 1.80. CAVA Group has a fifty-two week low of $43.41 and a fifty-two week high of $98.79. The business has a 50 day moving average price of $58.44 and a 200-day moving average price of $71.18.

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 net margin of 4.82% and a return on equity of 8.28%. The firm had revenue of $368.44 million for the quarter, compared to analysts’ expectations of $360.09 million. During the same quarter last year, the business earned $0.16 earnings per share. The business’s revenue was up 31.3% on a year-over-year basis. Research analysts predict that CAVA Group will post 0.55 EPS for the current year.

CAVA Group declared that its board has initiated a stock buyback plan on Friday, September 18th that allows the company to buy back $100.00 million in shares. This buyback authorization allows the company to purchase up to 1.7% of its shares through open market purchases. Share buyback plans are generally a sign that the company’s board believes its stock is undervalued.

Insider Activity at CAVA Group

In other CAVA Group news, insider Douglas Thompson bought 6,500 shares of the firm’s stock in a transaction that occurred on Monday, August 31st. The stock was bought at an average price of $66.52 per share, for a total transaction of $432,380.00. Following the completion of the acquisition, the insider directly owned 19,371 shares in the company, valued at $1,288,558.92. The trade was a 50.50% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this hyperlink. 6.70% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in CAVA. BlackRock Inc. bought a new position in CAVA Group in the 2nd quarter worth $757,013,000. Primecap Management Co. CA purchased a new stake in shares of CAVA Group in the 2nd quarter worth about $92,956,000. William Blair Investment Management LLC purchased a new stake in shares of CAVA Group in the 2nd quarter worth about $89,861,000. Prime Capital Management Co Ltd bought a new stake in shares of CAVA Group during the 2nd quarter valued at about $80,962,000. Finally, Wellington Management Group LLP boosted its stake in shares of CAVA Group by 76.9% during the 2nd quarter. Wellington Management Group LLP now owns 1,605,508 shares of the company’s stock valued at $126,000,000 after purchasing an additional 697,699 shares in the last quarter. 73.15% of the stock is owned by hedge funds and other institutional investors.

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.