Price movements can sometimes tell investors a lot about how a company is doing and overall market sentiment. If there's a big jump on earnings day, you know that the company either blasted by expectations or released encouraging guidance, or both. News items can have similar effects, leading to either a surge in price or a sharp sell-off once the news hits.

The recent stock performance of Cava Group (NYSE: CAVA) can also give investors valuable insights into the business. Its shares have been rising over the past week, and what's surprising is that investors might have been expecting them to be going in the opposite direction.

After an initial public offering (IPO), there is a lockup period during which insiders can't sell shares of the company. This prevents putting too much downward pressure on the stock out of the gate with insiders looking to cash out.

Continue reading

Source Fool.com