Chagee (NASDAQ:CHA) Shares Gap Up – Should You Buy?

Shares of Chagee Holdings Limited – Sponsored ADR (NASDAQ:CHA) gapped up prior to trading on Thursday. The stock had previously closed at $12.33, but opened at $13.00. Chagee shares last traded at $12.9490, with a volume of 770,897 shares traded.

Wall Street Analyst Weigh In

Several analysts have weighed in on the company. Jefferies Financial Group reaffirmed a “buy” rating on shares of Chagee in a report on Thursday. Weiss Ratings restated a “sell (d)” rating on shares of Chagee in a research report on Wednesday, October 28th. 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. Three investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $14.00.

Chagee Stock Performance

The firm has a market cap of $2.39 billion, a PE ratio of 12.89 and a beta of 1.31. The company’s 50-day simple moving average is $12.02 and its two-hundred day simple moving average is $11.16.

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

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Russell Investments Group Ltd. purchased a new position in Chagee in the 3rd quarter worth about $302,000. Y Intercept Hong Kong Ltd purchased a new stake in Chagee during the 1st quarter valued at approximately $427,000. Bank of America Corp DE increased its holdings in shares of Chagee by 5,266.8% in 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 last quarter. Empowered Funds LLC purchased a new stake in Chagee during the first quarter valued at $1,211,000. Finally, Renaissance Technologies LLC purchased a new stake in Chagee during the first quarter valued at approximately $2,511,000.

Chagee Company Profile

Chagee, also known as 霸王茶姬, is a China-based tea beverage company that develops and sells freshly prepared drinks made with tea. Its menu includes tea lattes and other milk tea and fruit tea beverages, with an emphasis on brewed tea and tea-forward flavors. Founded in 2017 by Zhang Junjie, who serves as the company’s chairman and chief executive officer, Chagee operates a network of branded teahouses. The company serves customers primarily in China and has expanded into selected Southeast Asian markets.