Chagee (NASDAQ:CHA) Stock Jumps 4.7% Following Dividend Announcement

Key Points

• Chagee shares rose 4.7% after the company announced a $1.95-per-share dividend, payable December 4 to shareholders of record November 23. Its payout ratio is 86.14%.
• Analyst opinions are mixed: three rate the stock Buy, three Hold and one Sell. MarketBeat’s average rating is Hold, with a $14.00 average price target.
• Chagee reported quarterly EPS of $0.37, beating the $0.33 consensus estimate, on revenue of $502.59 million.

Shares of Chagee Holdings Limited - Sponsored ADR (NASDAQ:CHA - Get Free Report) rose 4.7% during mid-day trading on Friday after the company announced a dividend. The stock traded as high as $13.94 and last traded at $14.1490. Approximately 584,734 shares changed hands during mid-day trading, a decline of 17% from the average session volume of 706,800 shares. The stock had previously closed at $13.51.The newly announced dividend which will be paid on Friday, December 4th. Shareholders of record on Monday, November 23rd will be issued a dividend of $1.95 per share. The ex-dividend date of this dividend is Monday, November 23rd. Chagee's payout ratio is currently 86.14%.

Wall Street Analyst Weigh In

CHA has been the subject of several analyst reports. Weiss Ratings reissued a "sell (d)" rating on shares of Chagee in a research note on Wednesday, October 28th. Jefferies Financial Group reaffirmed a "buy" rating on shares of Chagee in a research report on Thursday. Finally, Wall Street Zen upgraded Chagee from a "buy" rating to a "strong-buy" rating in a report on Sunday, October 4th. Three research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and an average target price of $14.00.

Chagee Price Performance

The firm's fifty day moving average is $12.06 and its two-hundred day moving average is $11.17. The firm has a market capitalization of $2.62 billion, a PE ratio of 14.13 and a beta of 1.31.

Chagee (NASDAQ:CHA - Get Free Report) last posted its quarterly earnings data on Friday, August 28th. The company reported $0.37 EPS for the quarter, beating the consensus estimate of $0.33 by $0.04. Chagee had a net margin of 10.23% and a return on equity of 16.43%. The firm had revenue of $502.59 million during the quarter. As a group, equities research analysts predict that Chagee Holdings Limited - Sponsored ADR will post 1.31 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Russell Investments Group Ltd. purchased a new stake in shares of Chagee during the 3rd quarter valued at $302,000. Bank of America Corp DE boosted its holdings in shares of Chagee by 5,266.8% in the 1st 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 during the last quarter. Empowered Funds LLC purchased a new position in shares of Chagee in the 1st quarter worth about $1,211,000. Finally, Renaissance Technologies LLC bought a new position in Chagee during the first quarter valued at about $2,511,000.

Chagee Company Profile

Chagee, also known as 霸王茶姬, is a China-based tea beverage company that develops and sells freshly prepared drinks made with tea. Its menu includes tea lattes and other milk tea and fruit tea beverages, with an emphasis on brewed tea and tea-forward flavors. Founded in 2017 by Zhang Junjie, who serves as the company's chairman and chief executive officer, Chagee operates a network of branded teahouses. The company serves customers primarily in China and has expanded into selected Southeast Asian markets.

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