Atour Lifestyle (NASDAQ:ATAT) Hits New 52-Week Low - Here's Why

Key Points

• Atour Lifestyle hit a new 52-week low, with shares falling to as low as $30.83 before last trading around $32.68 on above-average volume.
• Despite the stock weakness, analysts remain broadly positive: the consensus rating is Buy, with an average price target of $48.00.
• The company recently posted better-than-expected earnings and revenue, and it also increased its annual dividend from $0.36 to $0.54 per share.

Shares of Atour Lifestyle Holdings Limited Sponsored ADR (NASDAQ:ATAT - Get Free Report) hit a new 52-week low during trading on Wednesday . The stock traded as low as $30.83 and last traded at $32.6790, with a volume of 40805 shares. The stock had previously closed at $31.03.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on ATAT. Weiss Ratings cut shares of Atour Lifestyle from a "buy (b)" rating to a "buy (b-)" rating in a report on Monday, May 18th. Morgan Stanley restated an "overweight" rating and set a $45.00 price objective on shares of Atour Lifestyle in a report on Tuesday, March 17th. Wall Street Zen raised shares of Atour Lifestyle from a "hold" rating to a "buy" rating in a research report on Sunday, March 29th. UBS Group reaffirmed a "buy" rating on shares of Atour Lifestyle in a research note on Tuesday, March 17th. Finally, Zacks Research upgraded Atour Lifestyle from a "hold" rating to a "strong-buy" rating in a report on Wednesday, June 3rd. One investment analyst has rated the stock with a Strong Buy rating and eight have assigned a Buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Buy" and an average target price of $48.00.

Atour Lifestyle Trading Up 5.7%

The stock has a market cap of $4.51 billion, a P/E ratio of 17.64, a PEG ratio of 0.77 and a beta of 0.65. The company has a 50 day simple moving average of $34.08 and a 200 day simple moving average of $36.51.

Atour Lifestyle (NASDAQ:ATAT - Get Free Report) last released its quarterly earnings results on Wednesday, May 13th. The company reported $0.48 earnings per share for the quarter, topping analysts' consensus estimates of $0.37 by $0.11. Atour Lifestyle had a return on equity of 51.75% and a net margin of 17.22%.The firm had revenue of $407.74 million during the quarter, compared to the consensus estimate of $379.74 million. As a group, sell-side analysts expect that Atour Lifestyle Holdings Limited Sponsored ADR will post 2.09 earnings per share for the current year.

Atour Lifestyle Increases Dividend

The firm also recently announced an annual dividend, which was paid on Monday, June 22nd. Investors of record on Friday, June 5th were issued a dividend of $0.54 per share. The ex-dividend date was Friday, June 5th. This is a positive change from Atour Lifestyle's previous annual dividend of $0.36. This represents a yield of 162.0%. Atour Lifestyle's dividend payout ratio is currently 27.42%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in ATAT. Van Berkom & Associates Inc. raised its holdings in Atour Lifestyle by 0.4% in the 1st quarter. Van Berkom & Associates Inc. now owns 70,343 shares of the company's stock valued at $2,589,000 after acquiring an additional 300 shares during the period. EverSource Wealth Advisors LLC boosted its holdings in shares of Atour Lifestyle by 65.9% during the fourth quarter. EverSource Wealth Advisors LLC now owns 818 shares of the company's stock worth $32,000 after acquiring an additional 325 shares during the period. Royal Bank of Canada boosted its holdings in shares of Atour Lifestyle by 7.3% during the fourth quarter. Royal Bank of Canada now owns 7,469 shares of the company's stock worth $294,000 after acquiring an additional 511 shares during the period. Caitong International Asset Management Co. Ltd grew its position in shares of Atour Lifestyle by 651.7% in the third quarter. Caitong International Asset Management Co. Ltd now owns 669 shares of the company's stock valued at $25,000 after purchasing an additional 580 shares during the last quarter. Finally, Advyzon Investment Management LLC grew its position in shares of Atour Lifestyle by 10.6% in the fourth quarter. Advyzon Investment Management LLC now owns 6,350 shares of the company's stock valued at $250,000 after purchasing an additional 607 shares during the last quarter. Institutional investors own 17.79% of the company's stock.

About Atour Lifestyle

Atour Lifestyle Holdings Co, Ltd. operates as a hospitality and lifestyle company offering a range of lodging and accommodation services in China. The company's core business includes the development, operation and management of boutique hotels and serviced apartments under its Atour Hotel and Ankora brands. These properties cater primarily to the mid- to upscale segment, delivering a blend of comfort, design-focused interiors and localized services tailored to both business and leisure travelers.

In addition to room offerings, Atour Lifestyle provides a suite of ancillary services designed to enhance guest experiences.

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