Do Investors Have Much Faith In Cava Group Inc (NYSE: CAVA)

Cava Group Inc (NYSE:CAVA) does about 2.99M shares in volume on a normal day but saw 1317072 shares change hands in Friday trading. The company now has a market cap of 10.83B USD. Its current market price is $94.99, marking an increase of 0.07% compared to the previous close of $94.92. The 52 week high reached by this stock is $97.64 whilst the lowest price level in 52 weeks is $29.05.

Cava Group Inc (CAVA) has a 20-day trading average at $91.83 and the current price is -2.72% off the 52-week high compared with 226.99% distance from its 52-week low. The 50-day simple moving average of the closing price is $83.34 and its 200-day simple moving average is $54.97. If we look at the stock’s price movements over the week, volatility stands at 3.28%, which increases to 4.54% over 1 month. It is also key to look at other market indicators of price movement for the stock, where we see that the relative strength index (RSI) is at 61.87 to suggest the stock is neutral.

The consensus objective for the share price is $86.73, suggesting that the stock has a potential downside of -9.52% over the period.

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The company shares received a number of brokerage firm price updates over the past month, with the latest being on June 03, 2024 when JP Morgan downgraded the stock to “Neutral” and issued a price target of $77. Piper Sandler also downgraded the stock to “Neutral” from Overweight on May 30, 2024 at a price target of $63-$92. Barclays initiated its price target at $58.

Cava Group Inc (CAVA) stock is up 3.73% over the week and 7.53% over the past month. Its price is 121.01% year-to-date and 149.71% over the past year.

The stock last released its quarterly earnings report for quarter ended 3/31/2024, with the company’s earnings per share (EPS) of 0.21 above consensus estimates by 0.23. The company’s next earnings report forecasts estimating quarterly EPS at 0.12 and 0.34 for whole year. Expected sales for next quarter are $219.98M, which analysts say will come at $900.13M for the current fiscal year and next year at $1.08B. In addition, estimates put the company’s current quarterly revenue at an average of $217.02M.

To reach the target analysts have set, the stock logically needs to shrink -9.52 percent from here.

The company has a return on investment of 3.29% and return on equity of 7.43%. The price to earnings ratio (P/E ratio) amounts to 373.39 while the forward price to earnings ratio is 208.93. The beta has a value of 3.26. Price to book ratio is 18.65 and price to sales ratio is 13.81.

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