Atour Lifestyle (NASDAQ:ATAT) Sets New 52-Week High Following Strong Earnings

Key Points

• Atour Lifestyle Holdings Limited reached a new 52-week high, trading at $38.70 following a positive earnings report, with earnings per share of $0.42 exceeding analyst estimates.
• The company has announced a stock buyback program, indicating that the board believes the stock is undervalued, with a consensus rating of "Buy" from analysts.
• Institutional investors have increased their positions in Atour Lifestyle, with significant acquisitions made in the past few months, demonstrating growing confidence in the company's prospects.

Atour Lifestyle Holdings Limited Sponsored ADR (NASDAQ:ATAT - Get Free Report) reached a new 52-week high during mid-day trading on Tuesday following a better than expected earnings announcement. The stock traded as high as $38.70 and last traded at $36.85, with a volume of 815717 shares. The stock had previously closed at $35.10.

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 firm had revenue of $344.49 million for the quarter, compared to analysts' expectations of $326.00 million. Atour Lifestyle has set its FY 2025 guidance at EPS.

Atour Lifestyle declared that its board has initiated a share buyback plan on Thursday, May 22nd that allows the company to repurchase $0.00 in outstanding shares. This repurchase authorization allows the company to reacquire shares of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's leadership believes its stock is undervalued.

Wall Street Analyst Weigh In

Several brokerages have issued reports on ATAT. Citigroup restated a "buy" rating and issued a $38.00 price target (up from $36.50) on shares of Atour Lifestyle in a research report on Friday, May 23rd. Wall Street Zen cut shares of Atour Lifestyle from a "buy" rating to a "hold" rating in a research report on Saturday, July 12th. Four analysts have rated the stock with a Buy rating, According to MarketBeat.com, the company currently has an average rating of "Buy" and a consensus target price of $36.63.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Hollencrest Capital Management bought a new position in Atour Lifestyle in the second quarter worth approximately $29,000. Atlas Capital Advisors Inc. bought a new position in Atour Lifestyle in the first quarter worth approximately $27,000. Squarepoint Ops LLC boosted its holdings in Atour Lifestyle by 3.8% in the second quarter. Squarepoint Ops LLC now owns 29,458 shares of the company's stock worth $958,000 after acquiring an additional 1,073 shares in the last quarter. Loomis Sayles & Co. L P boosted its holdings in Atour Lifestyle by 322.0% in the second quarter. Loomis Sayles & Co. L P now owns 1,456 shares of the company's stock worth $47,000 after acquiring an additional 1,111 shares in the last quarter. Finally, Leading Securities Co Ltd boosted its holdings in Atour Lifestyle by 2.2% in the first quarter. Leading Securities Co Ltd now owns 53,226 shares of the company's stock worth $1,509,000 after acquiring an additional 1,137 shares in the last quarter. Institutional investors own 17.79% of the company's stock.

Atour Lifestyle Price Performance

The firm has a fifty day simple moving average of $34.89 and a 200-day simple moving average of $30.86. The firm has a market cap of $5.38 billion, a P/E ratio of 28.20, a price-to-earnings-growth ratio of 1.31 and a beta of 0.82.

Atour Lifestyle Company Profile

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.