CAVA Group Inc. (NYSE: CAVA) stock fell -1.77% on Friday to $35.42 against a previous-day closing price of $36.06. With 4.2 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.09 million shares. During the session, the Restaurants company that operates in wider Consumer Cyclical sector, reached to the highest price of $35.96 whereas the lowest price it dropped to was $34.42. The 52-week range on CAVA shows that it touched its highest point at $58.10 and its lowest point at $34.88 during that stretch. It currently has a 1-year price target of $49.62.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CAVA was down-trending over the past week, with a drop of -9.60%, but this was down by -24.53% over a month. A look at the trailing 12-month EPS for CAVA yields -0.23 with Next year EPS estimates of 0.02. For the next quarter, that number is -0.01. This implies an EPS growth rate of -57.80% for this year and -67.69% for next year.
Float and Shares Shorts:
At present, 113.58 million CAVA shares are outstanding with a float of 112.44 million shares on hand for trading. On Aug 30, 2023, short shares totaled 8.57 million, which was 7.55% higher than short shares on Jul 30, 2023. In addition to Mr. Brett Schulman as the firm’s CEO, Pres & Director, Ms. Tricia K. Tolivar serves as its Chief Financial Officer.
Through their ownership of 14.60% of CAVA’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 36.80% of CAVA, in contrast to 19.35% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in CAVA with 28.18% of the stake, Invus Public Equities Advisors LL holds 32,007,990 shares worth 32,007,990. A second-largest stockholder of CAVA, T. Rowe Price Investment Manageme, holds 12,673,121 shares, controlling over 11.16% of the firm’s shares. T. Rowe Price Associates, Inc. is the third largest shareholder in CAVA, holding 5,893,512 shares or 5.19% stake. With a 4.25% stake in CAVA, the T Rowe Price New Horizons Fund is the largest stakeholder. A total of 4,822,580 shares are owned by the mutual fund manager. The T Rowe Price Small Cap Value Fund, which owns about 2.93% of CAVA stock, is the second-largest Mutual Fund holder. It holds 3,322,272 shares valued at 147.54 million. T Rowe Price Small Cap Stock Fund holds 2.82% of the stake in CAVA, owning 3,196,924 shares worth 141.98 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jul 08, 2023, CAVA reported revenue of $135.91M and operating income of -$4.11M. The EBITDA in the recently reported quarter was $9.07M and diluted EPS was -$0.08.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CAVA since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With CAVA analysts setting a high price target of $58.00 and a low target of $40.00, the average target price over the next 12 months is $49.63. Based on these targets, CAVA could surge 63.75% to reach the target high and rise by 12.93% to reach the target low. Reaching the average price target will result in a growth of 40.12% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.