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

Chagee Holdings Limited – Sponsored ADR (NASDAQ:CHA) shares 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 trading hands.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on CHA shares. Wall Street Zen upgraded Chagee from a “buy” rating to a “strong-buy” rating in a report on Sunday, October 4th. Weiss Ratings reiterated a “sell (d)” rating on shares of Chagee in a report on Wednesday, October 28th. Finally, Jefferies Financial Group reiterated a “buy” rating on shares of Chagee in a report on Thursday. Three investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Chagee presently has a consensus rating of “Hold” and a consensus price target of $14.00.

Chagee Stock Up 5.8%

The firm has a market capitalization 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 200 day simple moving average is $11.16.

Chagee (NASDAQ:CHA) last issued its quarterly earnings results on Friday, August 28th. The company reported $0.37 earnings per share for the quarter, topping analysts’ consensus estimates of $0.33 by $0.04. Chagee had a return on equity of 16.43% and a net margin of 10.23%. The business had revenue of $502.59 million for the quarter. On average, sell-side analysts forecast that Chagee Holdings Limited – Sponsored ADR will post 1.31 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of CHA. Russell Investments Group Ltd. acquired a new stake in Chagee in the third quarter valued at approximately $302,000. Bank of America Corp DE increased its position 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 valued at $470,000 after buying an additional 49,561 shares in the last quarter. Empowered Funds LLC acquired a new position in shares of Chagee during the 1st quarter worth approximately $1,211,000. Renaissance Technologies LLC acquired a new position in shares of Chagee during the 1st quarter worth approximately $2,511,000. Finally, Y Intercept Hong Kong Ltd acquired a new position in shares of Chagee during the 1st quarter worth approximately $427,000.

About Chagee

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.