Chagee (NASDAQ:CHA) Stock Jumps 4.9% - Should You Buy?

Key Points

• Chagee shares rose 4.9% to $11.80, with the company valued at approximately $2.17 billion. The stock trades near its 50-day and 200-day moving averages.
• Analyst sentiment remains mixed: two analysts rate the stock Buy, four Hold and one Sell, producing an overall Hold rating and an average price target of $13.82.
• Chagee recently beat quarterly earnings expectations, reporting $0.37 EPS versus $0.33 expected and $502.59 million in revenue. Institutional investors, including Renaissance Technologies and Bank of America, have also recently increased or initiated positions.

Chagee Holdings Limited - Sponsored ADR (NASDAQ:CHA - Get Free Report)'s share price traded up 4.9% on Monday. The company traded as high as $11.75 and last traded at $11.80. Approximately 674,641 shares traded hands during trading, a decline of 4% from the average daily volume of 699,844 shares. The stock had previously closed at $11.25.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the stock. The Goldman Sachs Group started coverage on shares of Chagee in a report on Sunday, June 21st. They issued a "neutral" rating and a $13.60 price objective for the company. Wall Street Zen upgraded Chagee from a "buy" rating to a "strong-buy" rating in a report on Sunday, October 4th. Finally, Weiss Ratings cut Chagee from a "sell (d+)" rating to a "sell (d)" rating in a research 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's stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $13.82.

Chagee Price Performance

The company has a market cap of $2.17 billion, a price-to-earnings ratio of 11.71 and a beta of 1.48. The firm has a fifty day simple moving average of $11.23 and a 200 day simple moving average of $11.02.

Chagee (NASDAQ:CHA - Get Free Report) last posted its earnings results on Friday, August 28th. The company reported $0.37 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.33 by $0.04. The business had revenue of $502.59 million for the quarter. Chagee had a net margin of 10.23% and a return on equity of 16.43%. Analysts expect that Chagee Holdings Limited - Sponsored ADR will post 1.31 earnings per share for the current year.

Institutional Investors Weigh In On Chagee

Hedge funds and other institutional investors have recently made changes to their positions in the business. Renaissance Technologies LLC bought a new stake in shares of Chagee in the first quarter valued at approximately $2,511,000. Empowered Funds LLC acquired a new stake in shares of Chagee in the first quarter worth $1,211,000. Bank of America Corp DE increased its position in Chagee by 5,266.8% during the first quarter. Bank of America Corp DE now owns 50,502 shares of the company's stock worth $470,000 after acquiring an additional 49,561 shares during the period. Y Intercept Hong Kong Ltd bought a new position in Chagee during the first quarter worth $427,000. Finally, Virtu Financial LLC raised its stake in Chagee by 355.9% during the 4th 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 last quarter.

Chagee Company Profile

Chagee, also known as BaWangChaJi (霸王茶姬), is a Chinese tea beverage company that operates a chain of cafés and tea shops. Founded in 2017, the company focuses on freshly prepared drinks based on traditional Asian tea varieties, combining tea culture with modern café-style service and branding.

Its product range primarily includes tea-based beverages such as milk tea, pure tea and specialty tea lattes made with varieties including jasmine green tea, oolong tea and black tea. Chagee also offers selected seasonal and complementary beverages, with its menu and product development centered on brewed tea rather than the tapioca-focused drinks commonly associated with traditional bubble tea.

Chagee serves customers through a combination of company-operated and franchised locations.

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