CAVA Group Chief Operations Officer Acquires 51% More Stock
Potential CAVA Group, Inc. (NYSE:CAVA) shareholders may wish to note that the Chief Operations Officer, Douglas Thompson, recently bought US$432k worth of stock, paying US$66.52 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 51%, potentially signalling some real optimism.
CAVA Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Co-Founder, Brett Schulman, for US$3.0m worth of shares, at about US$89.43 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$61.67. So it is hard to draw any strong conclusion from it.
Over the last year, we can see that insiders have bought 15.15k shares worth US$1.1m. But they sold 142.08k shares for US$11m. In total, CAVA Group insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for CAVA Group
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Does CAVA Group Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. CAVA Group insiders own about US$142m worth of shares (which is 2.0% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At CAVA Group Tell Us?
The insider sales have outweighed the insider buying, at CAVA Group, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for CAVA Group you should be aware of.
But note: CAVA Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.