Newport Asia LLC Cuts Stake in Atour Lifestyle Holdings Limited Sponsored ADR (NASDAQ:ATAT)

Key Points

• Newport Asia LLC reduced its stake in Atour Lifestyle Holdings by 19.6% during the first quarter, now holding 53,010 shares valued at approximately $1.5 million.
• Atour Lifestyle recently announced a dividend increase, raising its annual dividend from $0.40 to $0.42 per share, yielding 1.3% with a payout ratio of 30.95%.
• The company has initiated a stock buyback plan, signaling management’s belief that the stock is undervalued.

Newport Asia LLC lessened its position in shares of Atour Lifestyle Holdings Limited Sponsored ADR (NASDAQ:ATAT - Free Report) by 19.6% during the first quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 53,010 shares of the company's stock after selling 12,946 shares during the quarter. Atour Lifestyle comprises 100.0% of Newport Asia LLC's investment portfolio, making the stock its biggest holding. Newport Asia LLC's holdings in Atour Lifestyle were worth $1,503,000 at the end of the most recent quarter.

Other institutional investors have also modified their holdings of the company. Pictet Asset Management Holding SA purchased a new position in shares of Atour Lifestyle in the 4th quarter valued at about $155,000. AdvisorShares Investments LLC acquired a new stake in Atour Lifestyle in the 4th quarter worth about $188,000. Robeco Institutional Asset Management B.V. purchased a new position in Atour Lifestyle during the first quarter worth approximately $209,000. Pinnacle Associates Ltd. acquired a new position in Atour Lifestyle in the first quarter valued at $213,000. Finally, Bank of New York Mellon Corp purchased a new stake in Atour Lifestyle during the first quarter valued at about $215,000. 17.79% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

ATAT has been the topic of a number of research reports. Wall Street Zen downgraded Atour Lifestyle from a "buy" rating to a "hold" rating in a report on Saturday, July 12th. Citigroup restated a "buy" rating and issued a $38.00 price target (up previously from $36.50) on shares of Atour Lifestyle in a report on Friday, May 23rd. One equities research analyst has rated the stock with a hold rating and four have issued a buy rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $36.63.

Atour Lifestyle Stock Performance

Shares of ATAT stock traded up $0.01 during mid-day trading on Friday, reaching $35.69. 1,086,634 shares of the company were exchanged, compared to its average volume of 1,426,461. The business's 50 day simple moving average is $32.96 and its 200 day simple moving average is $29.39. The company has a market capitalization of $4.93 billion, a P/E ratio of 28.33, a P/E/G ratio of 1.02 and a beta of 0.82. Atour Lifestyle Holdings Limited Sponsored ADR has a fifty-two week low of $15.22 and a fifty-two week high of $37.46.

Atour Lifestyle Increases Dividend

The firm also recently disclosed an annual dividend, which was paid on Wednesday, June 18th. Shareholders of record on Monday, June 2nd were issued a $0.42 dividend. This represents a yield of 1.3%. The ex-dividend date of this dividend was Monday, June 2nd. This is an increase from Atour Lifestyle's previous annual dividend of $0.40. Atour Lifestyle's payout ratio is currently 30.95%.

Atour Lifestyle declared that its Board of Directors has initiated a share buyback plan on Thursday, May 22nd that authorizes the company to repurchase $0.00 in shares. This repurchase authorization authorizes the company to reacquire shares of its stock through open market purchases. Stock repurchase plans are often a sign that the company's leadership 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.