WASHINGTON, D.C.—Costanza Kelly, the Chief People Officer at CAVA Group, Inc. (NYSE:CAVA), recently sold shares of the company's stock in transactions totaling $182,815. The sales, which took place on January 21, 2025, were part of mandated sell-to-cover transactions associated with the vesting of restricted stock units (RSUs). According to InvestingPro data, CAVA shares have delivered an impressive 160% return over the past year, with the stock currently trading at $124.11.
The transactions involved the sale of 1,534 shares of CAVA's common stock at prices ranging from $119.01 to $119.80 per share. These sales were executed to cover tax withholding obligations as per the company's equity incentive plans, rather than being discretionary trades by Kelly. The company, currently valued at $14.14 billion, maintains strong financial health according to InvestingPro analysis, with analysts setting price targets between $110 and $195.
Following these transactions, Kelly holds 132,519 shares of CAVA stock, including unvested RSUs. The sales were carried out as part of a broader transaction involving multiple employees, with proceeds distributed on a pro-rata basis. While CAVA appears overvalued based on current metrics, the company maintains a healthy current ratio of 2.93 and operates with moderate debt levels.
In other recent news, CAVA Group has been making significant strides in the restaurant industry. The company's recent third-quarter results exceeded expectations, with an 18.1% increase in same-store sales and a 39% surge in revenue to $241.5 million. The adjusted EBITDA for the quarter was also impressive at $33.5 million. Analysts from Bernstein SocGen initiated coverage on CAVA, giving it a Market Perform rating, while noting the company's impressive growth in sales and expansion of stores. However, they also suggested that the current stock price already reflects high expectations for future performance.
In terms of analyst upgrades and downgrades, several firms have adjusted their outlook on CAVA Group. Piper Sandler raised its price target to $142, maintaining a Neutral rating. Loop Capital increased its target to $147, maintaining a Hold rating. Morgan Stanley (NYSE:MS) raised its target to $135, keeping an Equalweight rating. CFRA upgraded their rating from Hold to Buy, with a new price target of $200. TD Cowen also adjusted its price target for CAVA Group, raising it to $150 and maintaining a Buy rating.
In other company news, CAVA's management has provided guidance for the upcoming year, anticipating a minimum net unit growth of 17% for 2025 and expecting restaurant-level margins to remain in line with the levels projected for 2024. These recent developments highlight CAVA Group's strong performance and potential in the restaurant industry.
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