Chagee (NASDAQ:CHA) Reaches New 12-Month Low on Disappointing Earnings

Key Points

• Chagee Holdings Limited shares fell to a new 12-month low of $19.00 after the company reported earnings of $0.05 EPS, missing the consensus estimate of $0.09.
• Analysts have downgraded Chagee's rating from "buy" to "hold," with the consensus target price lowered to $40.80.
• Multiple institutional investors have recently acquired new positions in Chagee, reflecting ongoing interest despite the stock's recent decline.

Chagee Holdings Limited - Sponsored ADR (NASDAQ:CHA - Get Free Report) shares hit a new 52-week low during mid-day trading on Friday following a weaker than expected earnings announcement. The company traded as low as $19.00 and last traded at $19.86, with a volume of 1461849 shares trading hands. The stock had previously closed at $22.00.

The company reported $0.05 EPS for the quarter, missing the consensus estimate of $0.09 by ($0.04).

Wall Street Analyst Weigh In

Several brokerages recently issued reports on CHA. Wall Street Zen lowered shares of Chagee from a "buy" rating to a "hold" rating in a research note on Saturday, August 9th. CICC Research initiated coverage on shares of Chagee in a research report on Friday, June 6th. They set an "outperform" rating and a $41.50 price objective on the stock. Citigroup initiated coverage on shares of Chagee in a research report on Wednesday, June 4th. They set a "buy" rating and a $43.70 price objective on the stock. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Chagee in a research report on Thursday, June 19th. They set a "buy" rating and a $40.50 price objective on the stock. Finally, Morgan Stanley initiated coverage on shares of Chagee in a research report on Monday, June 2nd. They set an "overweight" rating and a $37.50 price objective on the stock. Four investment analysts have rated the stock with a Buy rating, According to MarketBeat.com, the stock has a consensus rating of "Buy" and a consensus target price of $40.80.

Institutional Investors Weigh In On Chagee

Several hedge funds and other institutional investors have recently made changes to their positions in CHA. JPMorgan Chase & Co. bought a new position in shares of Chagee during the 2nd quarter valued at approximately $26,000. Federated Hermes Inc. bought a new position in shares of Chagee during the 2nd quarter valued at approximately $172,000. FACTORIAL MANAGEMENT Ltd bought a new position in shares of Chagee during the 2nd quarter valued at approximately $178,000. China Universal Asset Management Co. Ltd. bought a new position in shares of Chagee during the 2nd quarter valued at approximately $204,000. Finally, Geode Capital Management LLC bought a new position in shares of Chagee during the 2nd quarter valued at approximately $232,000.

Chagee Stock Down 10.7%

The company's 50 day moving average is $24.50.

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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