20 Large-Cap Stocks Insiders and Short Sellers Are Dumping Like Crazy

6. CAVA Group, Inc. (NASDAQ:CAVA)

Short Float: 9.14%

Insider Transaction: -37.09%

CAVA Group, Inc. (NASDAQ:CAVA), headquartered in Washington, D.C., is a fast-casual restaurant chain specializing in Mediterranean-inspired cuisine. The company has a vertically integrated model. Using the model, it combines its proprietary food production with scalable restaurant operations across the U.S. CAVA Group, Inc. (NASDAQ:CAVA) leverages digital ordering and health-focused offerings to attract millennial and Gen Z consumers. The company’s 2023 IPO capitalized on health-conscious dining trends, marking it a high-growth player in the fast-casual market environment.

The company saw a 36.8% year-over-year growth in revenue. However, food, beverage, and packaging costs have increased during the fourth quarter of 2024, owing to the national rollout of stake, which affects the company’s profit margin. Though labor and related costs decreased, it did not offset the menu price increases. CAVA Group, Inc. (NASDAQ:CAVA) expects stock-based compensation to reach $20 million to $22 million in 2025. The resulting dilution and vested shares create a negative outlook for the company among investors.

The company’s short float of 9.14% shows a strong upward trend in pessimism among market speculators. This is followed by a striking 37.09% insider transaction rate in the past 6 months, which suggests aggressive selling from within the company. With external and internal players retreating, doubts are cast on CAVA Group, Inc. (NASDAQ:CAVA)’s long-term positioning in the food sector.