Chagee Holdings Limited - Sponsored ADR (NASDAQ:CHA) Short Interest Update

Key Points

• Short interest nearly doubled: Chagee’s short interest rose 95.1% to 1.87 million shares as of September 15, representing 1.0% of shares outstanding and 1.3 days to cover.
• Shares traded at $11.45: The stock was up 0.4%, with a $2.10 billion market capitalization and a 52-week range of $8.98 to $17.66. Its latest quarterly EPS of $0.37 exceeded analyst estimates of $0.33 on revenue of $502.6 million.
• Analyst sentiment remains neutral: Chagee has a consensus “Hold” rating from analysts, with a consensus price target of $13.82, while recent rating changes included downgrades from Wall Street Zen and Weiss Ratings.

Chagee Holdings Limited - Sponsored ADR (NASDAQ:CHA - Get Free Report) was the recipient of a significant increase in short interest in September. As of September 15th, there was short interest totaling 1,865,003 shares, an increase of 95.1% from the August 31st total of 955,726 shares. Currently, 1.0% of the shares of the company are short sold. Based on an average daily volume of 1,491,608 shares, the days-to-cover ratio is currently 1.3 days.

Chagee Trading Up 0.4%

Shares of CHA opened at $11.45 on Tuesday. The firm has a fifty day simple moving average of $11.24 and a two-hundred day simple moving average of $10.99. The firm has a market cap of $2.10 billion, a PE ratio of 11.34 and a beta of 1.60. Chagee has a 1-year low of $8.98 and a 1-year high of $17.66.

Chagee (NASDAQ:CHA - Get Free Report) last released its quarterly earnings results on Friday, August 28th. The company reported $0.37 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.33 by $0.04. Chagee had a return on equity of 16.43% and a net margin of 10.23%.The firm had revenue of $502.59 million for the quarter. As a group, research analysts forecast that Chagee will post 1.31 EPS for the current fiscal year.

Analyst Ratings Changes

Several equities research analysts recently commented on CHA shares. Wall Street Zen downgraded Chagee from a "strong-buy" rating to a "buy" rating in a report on Saturday. The Goldman Sachs Group initiated coverage on shares of Chagee in a research note on Sunday, June 21st. They set a "neutral" rating and a $13.60 target price on the stock. Zacks Research raised shares of Chagee from a "strong sell" rating to a "hold" rating in a report on Monday, June 1st. Finally, Weiss Ratings downgraded shares of Chagee from a "sell (d+)" rating to a "sell (d)" rating in a report on Thursday, July 30th. Two research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $13.82.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of CHA. Caitong International Asset Management Co. Ltd raised its holdings in Chagee by 5,007.9% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 4,546 shares of the company's stock worth $53,000 after purchasing an additional 4,457 shares during the period. Virtu Financial LLC grew its holdings in Chagee by 355.9% during the fourth quarter. Virtu Financial LLC now owns 54,304 shares of the company's stock valued at $632,000 after purchasing an additional 42,393 shares during the period. Y Intercept Hong Kong Ltd bought a new stake in Chagee during the first quarter valued at about $427,000. Bank of America Corp DE increased its position in Chagee by 5,266.8% in the first quarter. Bank of America Corp DE now owns 50,502 shares of the company's stock worth $470,000 after buying an additional 49,561 shares in the last quarter. Finally, Empowered Funds LLC purchased a new stake in Chagee in the first quarter worth about $1,211,000.

Chagee Company Profile

Chagee Holding Limited operates the CHAGEE beverage brand, which specializes in freshly prepared tea drinks inspired by traditional Chinese tea culture. Its menu includes tea-based milk beverages, fruit tea and other drinks made with tea leaves, milk and related ingredients. The company positions CHAGEE as a premium, modern tea brand serving customers through branded retail locations.

Founded in 2017, Chagee has expanded its store network primarily through mainland China, while also serving customers in Southeast Asia.

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