Chagee (NASDAQ:CHA) Stock Crosses Above Fifty Day Moving Average - Should You Sell?

Key Points

• Chagee shares moved above their 50-day moving average, trading as high as $12.11 and last changing hands at $12.02, compared with a 50-day average of $11.75.
• Analyst sentiment is mixed: Jefferies upgraded the stock to Buy with a $14.90 price target, while Weiss Ratings maintained a Sell rating. The overall consensus remains Hold, with a $14.00 target.
• Growth initiatives include a Philippine flagship opening featuring TWICE’s Nayeon, new “teaspresso” drinks and a planned U.S. location in Roseville, California. The company also reported quarterly EPS of $0.37, above the $0.33 consensus estimate, on $502.59 million in revenue.

Chagee Holdings Limited - Sponsored ADR (NASDAQ:CHA - Get Free Report)'s stock price crossed above its 50 day moving average during trading on Thursday. The stock has a 50 day moving average of $11.75 and traded as high as $12.11. Chagee shares last traded at $12.02, with a volume of 414,309 shares traded.

More Chagee News

Here are the key news stories impacting Chagee this week:

• Positive Sentiment: TWICE member Nayeon is scheduled to appear at Chagee’s Philippine flagship-store opening and related Manila events in November. The celebrity partnership could increase launch-day traffic, social-media exposure and customer acquisition in a key Southeast Asian market. Nayeon to grace Chagee Philippine flagship opening
• Positive Sentiment: Chagee is introducing “teaspresso” beverages that combine espresso shots with tea. The new product line may broaden the company’s appeal beyond traditional tea and encourage incremental visits and sales. Chagee teaspresso drinks
• Positive Sentiment: A planned CHAGEE location at Westfield Galleria at Roseville points to continued U.S. expansion and greater visibility in high-traffic retail centers. The opening could help establish the brand in the U.S. market and advance management’s broader international growth strategy. CHAGEE coming to Westfield Galleria at Roseville
• Neutral Sentiment: Chagee’s Asia-Pacific marketing chief described ambitions to become a global, “Starbucks of tea” brand. The comments reinforce the company’s long-term positioning, but they are aspirational and were not accompanied by specific store, revenue or profitability targets. Chagee global ambitions

Analyst Upgrades and Downgrades

CHA has been the topic of several research reports. Wall Street Zen raised shares of Chagee from a "buy" rating to a "strong-buy" rating in a research report on Sunday, October 4th. Jefferies Financial Group raised shares of Chagee from a "hold" rating to a "buy" rating and raised their price objective for the stock from $11.80 to $14.90 in a report on Tuesday, October 20th. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of Chagee in a research note on Wednesday. Three research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $14.00.

Chagee Stock Performance

The firm has a 50 day simple moving average of $11.75 and a 200 day simple moving average of $11.15. The firm has a market cap of $2.21 billion, a P/E ratio of 11.90 and a beta of 1.48.

Chagee (NASDAQ:CHA - Get Free Report) last announced its quarterly earnings results on Friday, August 28th. The company reported $0.37 earnings per share for the quarter, beating the consensus estimate 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. Sell-side analysts predict that Chagee Holdings Limited - Sponsored ADR will post 1.31 EPS for the current fiscal year.

Hedge Funds Weigh In On Chagee

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Empowered Funds LLC bought a new stake in shares of Chagee during the 1st quarter valued at about $1,211,000. Renaissance Technologies LLC bought a new position in shares of Chagee in the first quarter worth approximately $2,511,000. Bank of America Corp DE raised its stake 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 valued at $470,000 after purchasing an additional 49,561 shares in the last quarter. Finally, Y Intercept Hong Kong Ltd purchased a new stake in Chagee in the first quarter valued at approximately $427,000.

About Chagee

Chagee, also known as Bawang Tea Ji, is a tea beverage company that operates a network of branded stores serving freshly prepared tea-based drinks. Its menu is centered on modern interpretations of traditional Asian tea, including tea lattes, brewed teas and other specialty beverages, as well as complementary food and refreshment products.

Founded in 2017 in China, Chagee has expanded through a combination of company-operated and franchised locations. The company primarily serves customers in China and has also developed an international presence in markets including Malaysia, Singapore, Thailand and Indonesia.

Chagee is led by founder and Chief Executive Officer Zhang Junjie.

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