CAVA Group (NYSE:CAVA) to Repurchase $100.00 million in Shares

by · The Markets Daily

CAVA Group (NYSE:CAVA – Get Free Report) announced that its Board of Directors has approved a stock repurchase program on Friday, September 18th, RTT News reports. The company plans to buyback $100.00 million in shares. This buyback authorization authorizes the company to buy up to 1.7% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s leadership believes its stock is undervalued.

Analysts Set New Price Targets

A number of research firms recently issued reports on CAVA. Morgan Stanley upgraded shares of CAVA Group from an “equal weight” rating to an “overweight” rating and boosted their target price for the company 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 report on Wednesday, August 12th. Robert W. Baird raised CAVA Group to a “strong-buy” rating in a research report on Monday, August 24th. TD Cowen lowered their target price on CAVA Group from $100.00 to $85.00 and set a “buy” rating on the stock in a research report on Wednesday, August 12th. Finally, Wall Street Zen raised shares of CAVA Group from a “sell” rating to a “hold” rating in a research report on Sunday, May 24th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat.com, CAVA Group presently has an average rating of “Moderate Buy” and an average price target of $88.64.

Get Our Latest Analysis on CAVA

CAVA Group Price Performance

Shares of CAVA stock traded up $0.47 during trading hours on Friday, reaching $51.67. The company had a trading volume of 6,004,088 shares, compared to its average volume of 2,928,874. The company has a market cap of $6.04 billion, a price-to-earnings ratio of 93.96, a price-to-earnings-growth ratio of 3.97 and a beta of 1.74. CAVA Group has a 12 month low of $43.41 and a 12 month high of $98.79. The business has a fifty day simple moving average of $64.07 and a 200-day simple moving average of $75.91.

CAVA Group (NYSE:CAVA – Get Free Report) last announced its quarterly 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. The business had revenue of $368.44 million during the quarter, compared to the consensus estimate of $360.09 million. CAVA Group had a return on equity of 8.28% and a net margin of 4.82%.CAVA Group’s revenue was up 31.3% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.16 earnings per share. On average, equities research analysts expect that CAVA Group will post 0.55 earnings per share for the current year.

Insider Transactions at CAVA Group

In other news, insider Douglas Thompson bought 6,500 shares of CAVA Group stock in a transaction dated Monday, August 31st. The stock was purchased at an average price of $66.52 per share, for a total transaction of $432,380.00. Following the purchase, 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 position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 6.70% of the stock is owned by corporate insiders.

CAVA Group News Summary

Here are the key news stories impacting CAVA Group this week:

  • Positive Sentiment: CAVA’s board authorized a $100 million share-repurchase program running through September 2027. The company may buy shares in the open market, private transactions, or under Rule 10b5-1 trading plans. Buybacks can support earnings per share and signal management’s confidence that the stock is undervalued. CAVA Announces a $100 Million Share Repurchase Program
  • Positive Sentiment: A bullish investment case points to CAVA’s strong operating momentum, including approximately 9% same-store sales growth, 5.3% higher traffic, and more than 26% year-over-year revenue and EBITDA growth. The company also plans to expand to more than 1,000 restaurants by 2032, supporting its long-term growth opportunity. Cava Looks Appetizing Even If The Valuation Is High
  • Positive Sentiment: Seaport Global initiated coverage with a Buy rating, while JPMorgan maintained an Overweight rating. These recommendations indicate that some analysts view the recent decline as an attractive entry point.
  • Neutral Sentiment: JPMorgan lowered its price target from $85 to $80 but retained its Overweight rating, implying substantial potential upside if CAVA meets its growth expectations. JPMorgan CAVA Price Target
  • Negative Sentiment: Royal Bank of Canada also cut its target from $95 to $85, reflecting a more cautious view despite maintaining an Outperform rating. Other commentary highlights the restaurant sector’s headwinds, while CAVA’s elevated valuation leaves the stock sensitive to any slowdown in traffic, margins, or new-store growth. Why Is CAVA Stock Crashing

About CAVA Group

Get Free Report)

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.

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