CAVA Group (NYSE:CAVA) Upgraded by Seaport Research Partners to “Strong-Buy” Rating

Seaport Research Partners upgraded shares of CAVA Group (NYSE:CAVA) to a strong-buy rating in a research report released on Tuesday morning,Zacks reports.

Several other brokerages also recently issued reports on CAVA. Morgan Stanley upgraded shares of CAVA Group from an “equal weight” rating to an “overweight” rating and raised their price objective for the stock from $86.00 to $90.00 in a research report on Wednesday, July 15th. Sanford C. Bernstein reiterated an “outperform” rating on shares of CAVA Group in a research note on Wednesday, August 12th. TD Cowen reduced their price target on CAVA Group from $100.00 to $85.00 and set a “buy” rating for the company in a research note on Wednesday, August 12th. Guggenheim decreased their price objective on CAVA Group from $100.00 to $95.00 and set a “buy” rating on the stock in a report on Thursday, August 13th. Finally, KeyCorp lowered their price objective on CAVA Group from $110.00 to $95.00 and set an “overweight” rating on the stock in a research report on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and ten have assigned a Hold rating to the company’s stock. According to MarketBeat, CAVA Group currently has a consensus rating of “Moderate Buy” and a consensus price target of $89.44.

CAVA Group Price Performance

NYSE:CAVA opened at $49.77 on Tuesday. The company has a market cap of $5.81 billion, a P/E ratio of 90.49, a P/E/G ratio of 3.88 and a beta of 1.74. The firm’s fifty day moving average price is $64.83 and its two-hundred day moving average price is $76.30. CAVA Group has a one year low of $43.41 and a one year high of $98.79.

CAVA Group (NYSE:CAVA) last posted its earnings results on Tuesday, August 11th. The company reported $0.19 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.18 by $0.01. The company had revenue of $368.44 million during 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%. CAVA Group’s quarterly revenue was up 31.3% compared to the same quarter last year. During the same quarter last year, the company posted $0.16 EPS. As a group, equities research analysts expect that CAVA Group will post 0.55 earnings per share for the current year.

Insiders Place Their Bets

In related news, insider Douglas Thompson bought 6,500 shares of the business’s stock in a transaction dated Monday, August 31st. The stock was purchased at an average cost of $66.52 per share, for a total transaction of $432,380.00. Following the transaction, the insider owned 19,371 shares in the company, valued at $1,288,558.92. The trade was a 50.50% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 6.70% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Oppenheimer Asset Management Inc. bought a new position in CAVA Group in the 2nd quarter valued at about $1,551,000. Trillium Asset Management LLC acquired a new stake in shares of CAVA Group during the 2nd quarter worth approximately $3,279,000. Prospect Financial Services LLC acquired a new stake in shares of CAVA Group during the 2nd quarter worth approximately $1,348,000. Connor Clark & Lunn Investment Management Ltd. bought a new position in CAVA Group in the second quarter valued at approximately $6,833,000. Finally, Prime Capital Management Co Ltd increased its stake in CAVA Group by 90.6% in 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 acquiring an additional 490,300 shares during the last quarter. Institutional investors and hedge funds own 73.15% of the company’s stock.

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.