Atour Lifestyle (NASDAQ:ATAT) Hits New 52-Week High on Analyst Upgrade

Key Points

• Atour Lifestyle's stock reached a new 52-week high of $39.93 following an upgrade from a hold to a buy rating by Wall Street Zen.
• Citigroup also reaffirmed a buy rating on the stock, raising its price target from $36.50 to $38.00, contributing to a strong consensus rating of "Buy" among analysts.
• The company recently reported quarterly earnings that surpassed estimates, posting $0.42 EPS against an expected $0.41, along with a robust revenue of $344.49 million.

Atour Lifestyle Holdings Limited Sponsored ADR (NASDAQ:ATAT - Get Free Report) shares reached a new 52-week high during mid-day trading on Monday after Wall Street Zen upgraded the stock from a hold rating to a buy rating. The stock traded as high as $39.93 and last traded at $39.84, with a volume of 545475 shares trading hands. The stock had previously closed at $39.04.

Separately, Citigroup reiterated a "buy" rating and issued a $38.00 target price (up previously from $36.50) on shares of Atour Lifestyle in a research note on Friday, May 23rd. Four investment analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, Atour Lifestyle presently has a consensus rating of "Buy" and a consensus target price of $36.63.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Sumitomo Mitsui Trust Group Inc. acquired a new position in Atour Lifestyle in the first quarter valued at approximately $809,000. Principal Financial Group Inc. acquired a new position in Atour Lifestyle in the first quarter valued at approximately $68,322,000. The Manufacturers Life Insurance Company lifted its holdings in Atour Lifestyle by 867.6% in the first quarter. The Manufacturers Life Insurance Company now owns 645,399 shares of the company's stock valued at $18,297,000 after acquiring an additional 578,697 shares during the period. Northern Trust Corp lifted its holdings in Atour Lifestyle by 139.3% in the fourth quarter. Northern Trust Corp now owns 75,476 shares of the company's stock valued at $2,030,000 after acquiring an additional 43,931 shares during the period. Finally, E Fund Management Hong Kong Co. Ltd. acquired a new position in Atour Lifestyle in the first quarter valued at approximately $1,030,000. 17.79% of the stock is owned by institutional investors and hedge funds.

Atour Lifestyle Price Performance

The company has a market capitalization of $5.48 billion, a price-to-earnings ratio of 28.75, a P/E/G ratio of 1.34 and a beta of 0.83. The stock has a fifty day simple moving average of $36.22 and a 200-day simple moving average of $31.45.

Atour Lifestyle (NASDAQ:ATAT - Get Free Report) last announced its quarterly earnings results on Tuesday, August 26th. The company reported $0.42 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.41 by $0.01. Atour Lifestyle had a return on equity of 45.66% and a net margin of 16.52%.The company had revenue of $344.49 million during the quarter, compared to the consensus estimate of $326.00 million. Atour Lifestyle has set its FY 2025 guidance at EPS. As a group, equities analysts expect that Atour Lifestyle Holdings Limited Sponsored ADR will post 1.24 EPS for the current fiscal year.

Atour Lifestyle declared that its Board of Directors has authorized a stock buyback program on Thursday, May 22nd that allows the company to buyback $0.00 in shares. This buyback authorization allows the company to repurchase shares of its stock through open market purchases. Shares buyback programs are generally an indication that the company's board of directors believes its stock is undervalued.

About Atour Lifestyle

Atour Lifestyle Holdings Limited, through its subsidiaries, develops lifestyle brands around hotel offerings in the People's Republic of China. The company provides hotel management services, including day-to-day management services of the hotels for the franchisees; and sells hotel supplies and other products.