Cava (NYSE:CAVA) stock is falling on Thursday as traders worry that institutional investors may be giving up on the restaurant chain company’s shares.
This concern comes after investor Artal International S.C.A. filed a notice with the Securities and Exchange Commission (SEC) about a share sale. The company is going to sell 3 million shares of CAVA.
Artal International S.C.A. is converting its shares of Series E Preferred Stock into common stock to facilitate this sale. On top of this, the move further damaged investor morale after the firm sold 2 million shares of CAVA stock in March.
It’s worth noting that Artal International S.C.A. has been an investor in Cava since 2015. The firm has continued to be one of the company’s largest investors after it went public in 2023.
CAVA Stock Insider Sale
On top of the institutional investor sale, Cava chairman Ron Shaich is also selling shares of the company’s stock. A series of filings with the SEC reveal that he intends to sell roughly 2.55 million shares of CAVA stock.
With all of this news comes heavy trading of CAVA stock today. This has more than 3.3 million shares trading hands as of this writing. That’s already above its daily average trading volume of about 2.9 million shares.
CAVA stock is down 4.9% as of Thursday morning.
Investors looking for more of the most recent stock market stories are in luck!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
