Mediterranean fast-casual restaurant chain operator CAVA Group (CAVA) took a beating on Monday thanks to some insider selling. Director Theodoros Xenohristos sold 65,000 shares of CAVA stock for between $145.40 and $147.03 per share. After this sale, the director continues to hold 359,846 shares of CAVA stock.
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Breaking down those stock sales, Xenohristos sold them in three batches. They were sold in groups of 31,600, 30,966, and 2,434 on Dec. 4. No reason was given for the share sale, but directors and executives do sell shares from time to time.
What This Means for CAVA Stock
The real issue comes from how investors interpret share sales. When a large figure in a company sells their stock, shareholders often see that as a lack of confidence in the company. Sometimes, that might be true, but other times, it is simply an instance of the individual wanting cash instead of the stock.
A perfect example of how this can rattle investor confidence comes in the form of CAVA’s share price today. The stock is down 11.45% as of this writing, with most of the movement likely tied to Xenohristos’s stock sale. This brings heavy trading as 3.99 million shares change hands, compared to a three-month daily average of 2.64 million units.
While investors may be rattled by the share sale, the long-term history doesn’t show any reason to be concerned about this. The stock is up a massive 214.56% year-to-date, with a 316.13% increase over the last 12 months.
Is CAVA Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for CAVA Group is Moderate Buy based on five Buy ratings and eight Hold ratings over the last three months. With that comes an average price target of $152.46, a high of $200, and a low of $110. This represents a potential 13.78% upside for CAVA shares.
