Chagee (NASDAQ:CHA) Hits New 1-Year Low - Here's Why

Key Points

• 52-week low: Chagee (NASDAQ:CHA) fell to $12.28 (last $12.3550) on heavy volume after reporting quarterly EPS of $0.29 versus $0.36 expected and revenue of $450.67M versus $458.31M consensus.
• Dividend risk: The company paid a $0.92 dividend with a payout ratio of 98.86%, highlighting potential sustainability concerns for its cash returns.
• Analyst and institutional picture is mixed — MarketBeat shows a consensus "Hold" with an average target of $32.73, while major institutions such as Schroder and UBS have recently built or increased positions.

Chagee Holdings Limited - Sponsored ADR (NASDAQ:CHA - Get Free Report) shares hit a new 52-week low on Thursday . The company traded as low as $12.28 and last traded at $12.3550, with a volume of 1127608 shares. The stock had previously closed at $13.47.

Analyst Ratings Changes

CHA has been the topic of several recent analyst reports. Weiss Ratings restated a "sell (d)" rating on shares of Chagee in a report on Monday. JPMorgan Chase & Co. began coverage on shares of Chagee in a report on Friday, November 14th. They set an "underweight" rating and a $14.20 price target on the stock. Wall Street Zen upgraded shares of Chagee from a "sell" rating to a "hold" rating in a research report on Sunday. Finally, Macquarie began coverage on shares of Chagee in a research report on Friday, September 5th. They set a "neutral" rating and a $19.00 price objective on the stock. Four investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Chagee currently has a consensus rating of "Hold" and an average target price of $32.73.

Chagee Price Performance

The firm's fifty day moving average is $15.12 and its 200 day moving average is $20.34. The firm has a market capitalization of $2.25 billion and a price-to-earnings ratio of 13.92.

Chagee (NASDAQ:CHA - Get Free Report) last released its earnings results on Friday, November 28th. The company reported $0.29 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.36 by ($0.07). The business had revenue of $450.67 million for the quarter, compared to the consensus estimate of $458.31 million.

Chagee Dividend Announcement

The business also recently declared a dividend, which was paid on Monday, December 15th. Shareholders of record on Monday, December 8th were given a $0.92 dividend. The ex-dividend date of this dividend was Monday, December 8th. Chagee's payout ratio is currently 98.86%.

Institutional Trading of Chagee

A number of institutional investors and hedge funds have recently modified their holdings of the company. Schroder Investment Management Group acquired a new position in Chagee in the 3rd quarter valued at $46,150,000. UBS Group AG increased its stake in Chagee by 212.5% in the third quarter. UBS Group AG now owns 984,755 shares of the company's stock valued at $16,298,000 after acquiring an additional 669,583 shares during the period. Marshall Wace LLP acquired a new position in shares of Chagee in the 2nd quarter worth approximately $13,764,000. Barings LLC bought a new position in shares of Chagee during the 2nd quarter worth approximately $11,302,000. Finally, Allianz Asset Management GmbH acquired a new stake in Chagee in the 2nd quarter valued at $11,034,000.

About Chagee

Our Mission With every cup of our tea, we aspire to foster a global connection of people and cultures. Our Vision To modernize the tea-drinking experience through technology and innovation. Our Core Values “Customer First” is the foundational philosophy of how we make decisions and run our business. “Caring for Partners” is the core value that defines how we interact with consumers, franchise partners, suppliers, and employees.

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