Cava's earnings are helping the stock out of a dreary August
The shares of Mediterranean fast-casual chain operator CAVA Group Inc (NYSE:CAVA) are 2.1% higher this morning, last seen at $47.36 and earlier trading as high as $51.16. The Wall Street newcomer reported a profit in its first quarterly report since its initial public offering (IPO), while revenue jumped 62% in the second quarter thanks to new store openings.
Following the event, no less than five analysts hiked their price targets on CAVA, with Stifel adjusting all the way up to $55. Currently, six of the eight covering brokerages called the equity a "strong buy," while the 12-month average target price of $50.14 is a 5.4% premium to current levels.
The options pits are brimming with activity in just the first hour of trading. So far, 5,616 calls and 4,179 puts have crossed the tape, volume that's 11 times the average intraday amount. The most popular contract is the August 50 call, which expires at the end of this week.
Cava's initial public offering (IPO) was priced at $22, but on June 15 the stock opened at $42 and closed at $43.78. After racing out to an Aug. 2 peak of $58.10, the stock has shed 17% in August already, even with today's pop.