Chagee (NASDAQ:CHA) Shares Gap Up on Strong Earnings

Shares of Chagee Holdings Limited – Sponsored ADR (NASDAQ:CHA) gapped up prior to trading on Monday following a better than expected earnings announcement. The stock had previously closed at $10.80, but opened at $11.21. Chagee shares last traded at $11.5650, with a volume of 459,349 shares traded.

The company reported $0.37 earnings per share for the quarter, topping analysts’ consensus estimates of $0.33 by $0.04. The business had revenue of $502.59 million during the quarter. Chagee had a return on equity of 16.43% and a net margin of 10.23%.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on CHA shares. Wall Street Zen lowered Chagee from a “strong-buy” rating to a “buy” rating in a report on Sunday, July 12th. Weiss Ratings cut shares of Chagee from a “sell (d+)” rating to a “sell (d)” rating in a report on Thursday, July 30th. Morgan Stanley restated an “overweight” rating and issued a $15.50 price objective on shares of Chagee in a research note on Friday, May 29th. 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 initiated coverage on Chagee in a report on Sunday, May 31st. They issued a “hold” rating and a $10.00 price objective for the company. Two equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $14.68.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. JPMorgan Chase & Co. purchased a new stake in Chagee in the second quarter valued at approximately $26,000. Caitong International Asset Management Co. Ltd grew its stake in Chagee by 3,141.6% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 2,885 shares of the company’s stock worth $34,000 after buying an additional 2,796 shares in the last quarter. Quantbot Technologies LP bought a new position in shares of Chagee in the 3rd quarter worth $34,000. Geode Capital Management LLC bought a new position in shares of Chagee in the 4th quarter worth $147,000. Finally, Federated Hermes Inc. purchased a new stake in shares of Chagee during the 2nd quarter valued at $172,000.

Chagee Trading Up 2.6%

The company has a market capitalization of $2.19 billion, a P/E ratio of 11.81 and a beta of 1.57. The business’s fifty day moving average price is $11.06 and its 200-day moving average price is $10.82.

Chagee Company Profile

Our Mission With every cup of our tea, we aspire to foster a global connection of people and cultures. Our Vision To modernize the tea-drinking experience through technology and innovation. Our Core Values “Customer First” is the foundational philosophy of how we make decisions and run our business. “Caring for Partners” is the core value that defines how we interact with consumers, franchise partners, suppliers, and employees. “Quality, Health, and Convenience” is the guiding principle of how we make our products.