Chagee (NASDAQ:CHA) Stock Price Up 4.9% – Still a Buy?

Chagee Holdings Limited – Sponsored ADR (NASDAQ:CHA) rose 4.9% during trading on Monday. The stock traded as high as $11.75 and last traded at $11.80. Approximately 674,641 shares traded hands during mid-day trading, a decline of 4% from the average session volume of 699,844 shares. The stock had previously closed at $11.25.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the stock. The Goldman Sachs Group started coverage on shares of Chagee in a research note on Sunday, June 21st. They set a “neutral” rating and a $13.60 price objective for the company. Weiss Ratings downgraded shares of Chagee from a “sell (d+)” rating to a “sell (d)” rating in a research note on Thursday, July 30th. Finally, Wall Street Zen raised shares of Chagee from a “buy” rating to a “strong-buy” rating in a research note on Sunday, October 4th. Two equities 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. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $13.82.

Chagee Price Performance

The company has a market cap of $2.30 billion, a price-to-earnings ratio of 12.40 and a beta of 1.48. The company’s 50-day simple moving average is $11.28 and its 200-day simple moving average is $11.05.

Chagee (NASDAQ:CHA) last posted its earnings results on Friday, August 28th. The company reported $0.37 EPS for the quarter, topping 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%. Equities analysts predict that Chagee Holdings Limited – Sponsored ADR will post 1.31 EPS for the current fiscal year.

Hedge Funds Weigh In On Chagee

A number of institutional investors have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd boosted its position 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 valued at $53,000 after buying an additional 4,457 shares during the last quarter. Y Intercept Hong Kong Ltd purchased a new stake in shares of Chagee during the first quarter worth about $427,000. Bank of America Corp DE increased its position 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 acquiring an additional 49,561 shares during the last quarter. Virtu Financial LLC lifted its stake in shares of Chagee by 355.9% in the fourth quarter. Virtu Financial LLC now owns 54,304 shares of the company’s stock worth $632,000 after acquiring an additional 42,393 shares in the last quarter. Finally, Empowered Funds LLC acquired a new position in shares of Chagee in the first quarter worth about $1,211,000.

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.