Chagee (NASDAQ:CHA) Shares Gap Up Following Earnings Beat

Chagee Holdings Limited – Sponsored ADR (NASDAQ:CHA) shares gapped up prior to trading on Monday following a stronger than expected earnings report. 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 trading hands.

The company reported $0.37 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 for the quarter.

Analysts Set New Price Targets

Several equities research analysts have weighed in on the company. CLSA initiated coverage on Chagee in a research note on Sunday, May 31st. They set a “hold” rating and a $10.00 target price for the company. Zacks Research upgraded Chagee from a “strong sell” rating to a “hold” rating in a research note on Monday, June 1st. Wall Street Zen cut Chagee from a “strong-buy” rating to a “buy” rating in a report on Sunday, July 12th. Weiss Ratings lowered Chagee from a “sell (d+)” rating to a “sell (d)” rating in a research note on Thursday, July 30th. Finally, The Goldman Sachs Group started coverage on Chagee in a research report on Sunday, June 21st. They issued a “neutral” rating and a $13.60 target price on the stock. Two research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Chagee currently has a consensus rating of “Hold” and a consensus price target of $14.68.

Hedge Funds Weigh In On Chagee

A number of hedge funds have recently modified their holdings of the business. Geode Capital Management LLC acquired a new stake in Chagee in the second quarter valued at $232,000. JPMorgan Chase & Co. bought a new stake in shares of Chagee in the 2nd quarter valued at about $26,000. Russell Investments Group Ltd. acquired a new stake in shares of Chagee in the second quarter valued at about $1,226,000. Walleye Capital LLC bought a new position in shares of Chagee during the second quarter worth about $587,000. Finally, Federated Hermes Inc. bought a new position in shares of Chagee during the second quarter worth about $172,000.

Chagee Stock Up 2.6%

The stock has a 50 day moving average of $11.06 and a 200 day moving average of $10.82. The company has a market capitalization of $2.19 billion, a price-to-earnings ratio of 11.81 and a beta of 1.57.

About Chagee

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.