Cava Group fell solidly Tuesday after CEO Brent Schulman and several key executives and directors disclosed sales of Cava stock in the wake of the Mediterranean-themed restaurant chain's post-earnings spike to record highs.
CEO Schulman sold 210,504 shares for $24.87 million, according to SEC filings released Monday night. That's just about 5.5% of his Cava stock holdings.
Ted Xenohristos, Cava co-founder and chief concept officer, sold 98,490 shares for $12.387 million. CFO Patricia Tolivar sold 5,000 shares for $628,175. Board member James White sold 1,500 shares for $190,770.
A trust linked to board member David Bosserman sold 5,000 shares for $627,550.
Meanwhile, Cava's largest shareholder, Artal International, filed to sell 6 million shares.
Cava Stock Falls
Cava stock fell to 113.90 soon after the open, recovering somewhat to down 6.25% at 117.94 in Tuesday's stock market trading.
Shares climbed 3.1% to 125.80 on Monday, hitting a record high intraday. On Friday, Cava skyrocketed 19.6%. That's after reporting second-quarter earnings spiked 183% with revenue growth picking up to 35%, both beating analyst views.
How To Handle Cava Stock Now
For long-term holders, Cava's Tuesday move was just a blip. Year to date, Cava stock had skyrocketed nearly 193% as of Monday's close.
For those who bought Cava stock on Friday's earnings gap up, that day's intraday low of 110 could be a place to exit.
For new or add-on buys, Cava stock seems out of position.
Cava came public at 22 a share in June 2023.
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