Chagee (NASDAQ:CHA) Stock Price Down 3.8% - What's Next?

Key Points

• Chagee shares fell 3.8% to about $11.76 in Tuesday trading, with volume 72% below the average session level.
• Analyst sentiment remains mixed: the stock has an average “Hold” rating and a consensus price target of $13.82, while targets range from $10.00 to $15.50.
• Chagee exceeded quarterly earnings expectations, reporting $0.37 in EPS versus $0.33 expected and $502.59 million in revenue; the company posted a 10.23% net margin and 16.43% return on equity.

Chagee Holdings Limited - Sponsored ADR (NASDAQ:CHA - Get Free Report)'s stock price dropped 3.8% during trading on Tuesday . The stock traded as low as $11.81 and last traded at $11.7610. Approximately 194,926 shares were traded during mid-day trading, a decline of 72% from the average session volume of 696,744 shares. The stock had previously closed at $12.22.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on the company. Wall Street Zen raised Chagee from a "buy" rating to a "strong-buy" rating in a report on Saturday, September 5th. Morgan Stanley restated an "overweight" rating and set a $15.50 target price on shares of Chagee in a research note on Friday, May 29th. The Goldman Sachs Group initiated coverage on Chagee in a report on Sunday, June 21st. They issued a "neutral" rating and a $13.60 price target for the company. Zacks Research upgraded shares of Chagee from a "strong sell" rating to a "hold" rating in a research note on Monday, June 1st. Finally, CLSA started coverage on shares of Chagee in a research report on Sunday, May 31st. They set a "hold" rating and a $10.00 price objective for the company. Two analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Chagee presently has an average rating of "Hold" and an average target price of $13.82.

Chagee Stock Down 2.9%

The firm has a market capitalization of $2.18 billion, a price-to-earnings ratio of 11.75 and a beta of 1.60. The company has a fifty day moving average price of $11.23 and a two-hundred day moving average price of $10.96.

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

Hedge Funds Weigh In On Chagee

A number of hedge funds and other institutional investors have recently made changes to their positions in CHA. Caitong International Asset Management Co. Ltd lifted its position in Chagee by 5,007.9% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 4,546 shares of the company's stock worth $53,000 after acquiring an additional 4,457 shares during the period. Y Intercept Hong Kong Ltd acquired a new stake in shares of Chagee during the first quarter worth $427,000. Bank of America Corp DE lifted its holdings in shares of 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 purchasing an additional 49,561 shares during the period. Virtu Financial LLC grew its position in Chagee by 355.9% in the 4th quarter. Virtu Financial LLC now owns 54,304 shares of the company's stock valued at $632,000 after buying an additional 42,393 shares during the last quarter. Finally, Empowered Funds LLC acquired a new position in Chagee in the 1st quarter valued at $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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