Several insiders sold CAVA shares after its recent post-earnings rally
CAVA Group Inc (NYSE:CAVA) stock is retreating sharply from last session's record highs, down 7.2% at $116.79, after reports that several insiders are selling shares following the stock's latest post-earnings rally. This includes CEO Brent Schulman, who sold 210,504 shares for $35.868 million.
Since the start of 2024, the fast-casual restaurant stock has added 170%, with consistent record highs along the way. The stock yesterday extended Friday's 19.6% pop, marking an all-time high of $128.18. A short-term dip could've already been in the cards, however, as CAVA's 14-day relative strength index of 93.9 sits firmly in "overbought" territory.
Over in the options pits, 16,000 calls and 23,000 puts have been exchanged so far today. The weekly 8/30 115-strike put is the most popular, followed by the 110-strike put in the same series, with new positions being bought to open at both.
Meanwhile, though short interest has been slowly unwinding, it still represents 9.6% of the stock's available float. It would take shorts over three days to cover their bets, at the equity's average pace of trading.