Why Cava Stock Dropped 20% in December
Shares of restaurant company Cava Group (NYSE: CAVA) dropped 19.9% during December, according to data provided by S&P Global Market Intelligence. On one hand, fellow high-flying restaurant stock Sweetgreen was down by almost the same amount, and its decline started at the same time as Cava’s, which suggests the drop for Cava isn’t directly related to the company.
On the other hand, there was a lot of insider selling for Cava stock in December, which often unsettles investors.
Investors dislike insider selling because these stakeholders often have a more direct and timely look into the business. Some investors think that if insiders sell, then they know something that the rest of us don’t.
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