Cava group’s COO Jennifer Somers sells $187k in stock

Published 29/01/2025, 22:02
Cava group’s COO Jennifer Somers sells $187k in stock

Jennifer Somers, Chief Operations Officer of CAVA Group, Inc. (NYSE:CAVA), recently sold a significant portion of her holdings in the company. According to the SEC filing, Somers sold a total of 1,508 shares of common stock on January 27, 2025. The shares were sold at prices ranging from $123.47 to $125.12, resulting in a total transaction value of approximately $187,584. The stock has since risen to $135.27, contributing to CAVA’s impressive 164% return over the past year. InvestingPro analysis indicates the stock is currently trading above its Fair Value.

The transactions were part of a mandatory "sell to cover" arrangement to meet tax withholding obligations related to the vesting of restricted stock units (RSUs). These sales were not discretionary trades by Somers but were required under the company’s equity incentive plans. Following these transactions, Somers holds 133,596 shares directly and 300 shares indirectly through a spouse. With CAVA’s market capitalization now at $14.4 billion and an overall financial health score rated as GOOD by InvestingPro, which offers 15+ additional insights about the company’s valuation and growth prospects.

In other recent news, CAVA Group has been receiving notable attention from various analyst firms, following a strong financial performance. The company reported a 39% surge in revenue to $241.5 million in the third quarter, alongside an 18.1% increase in same-store sales. The adjusted EBITDA for the same period was reported at $33.5 million. Bernstein SocGen initiated coverage with a Market Perform rating on CAVA, citing impressive growth but advising caution due to the stock’s current market value.

Meanwhile, William Blair expressed optimism about CAVA’s growth and adjusted their estimates for 2025 and 2026 to 80-90% above initial expectations. Several analyst firms also adjusted their outlook. Piper Sandler raised its price target to $142 and Loop Capital increased its target to $147, both maintaining a Neutral and Hold rating respectively. 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.

These developments reflect the company’s strong performance and the positive outlook for CAVA Group. The company’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.

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