Gaotu Techedu (NYSE:GOTU) Trading 9.2% Higher – Still a Buy?

Shares of Gaotu Techedu Inc. (NYSE:GOTU) were up 9.2% during trading on Tuesday . The stock traded as high as $2.0950 and last traded at $2.0850. Approximately 309,793 shares traded hands during mid-day trading, a decline of 26% from the average daily volume of 421,171 shares. The stock had previously closed at $1.91.

Analysts Set New Price Targets

Separately, Weiss Ratings cut shares of Gaotu Techedu from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Thursday, July 23rd. One equities research analyst has rated the stock with a Sell rating, According to data from MarketBeat, the company presently has an average rating of “Sell”.

Gaotu Techedu Trading Up 10.7%

The company has a quick ratio of 0.85, a current ratio of 0.86 and a debt-to-equity ratio of 0.15. The firm has a market cap of $507.28 million, a price-to-earnings ratio of -10.07 and a beta of 0.70. The business has a 50 day moving average of $1.75 and a 200 day moving average of $1.86.

Gaotu Techedu (NYSE:GOTU) last posted its quarterly earnings data on Thursday, August 27th. The company reported ($0.09) EPS for the quarter, missing analysts’ consensus estimates of ($0.01) by ($0.08). Gaotu Techedu had a negative return on equity of 26.89% and a negative net margin of 5.00%.The company had revenue of $245.82 million for the quarter, compared to analysts’ expectations of $238.39 million.

Insider Activity at Gaotu Techedu

In other news, CEO Xiangdong Chen purchased 167,051 shares of the stock in a transaction dated Thursday, June 18th. The stock was acquired at an average cost of $2.50 per share, for a total transaction of $417,627.50. Following the completion of the acquisition, the chief executive officer directly owned 8,014,529 shares in the company, valued at $20,036,322.50. This represents a 2.13% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Insiders have bought 500,000 shares of company stock worth $1,175,032 in the last ninety days. Insiders own 44.90% of the company’s stock.

Hedge Funds Weigh In On Gaotu Techedu

Several institutional investors and hedge funds have recently modified their holdings of the company. Headlands Technologies LLC acquired a new stake in Gaotu Techedu during the second quarter worth approximately $35,000. Public Employees Retirement System of Ohio purchased a new position in shares of Gaotu Techedu during the 2nd quarter worth $53,000. Renaissance Technologies LLC lifted its stake in shares of Gaotu Techedu by 2.2% during the 1st quarter. Renaissance Technologies LLC now owns 2,330,640 shares of the company’s stock worth $4,568,000 after purchasing an additional 50,362 shares during the period. Hsbc Holdings PLC boosted its holdings in shares of Gaotu Techedu by 27.7% during the first quarter. Hsbc Holdings PLC now owns 161,501 shares of the company’s stock worth $319,000 after purchasing an additional 35,044 shares during the last quarter. Finally, SmartHarvest Portfolios LLC acquired a new stake in shares of Gaotu Techedu during the first quarter worth $29,000. Hedge funds and other institutional investors own 48.42% of the company’s stock.

About Gaotu Techedu

Gaotu Techedu Inc (NYSE:GOTU), formerly known as GSX Techedu, is a Beijing-based provider of online education services in China. Since its founding in 2014, the company has built a technology-driven platform that delivers live, interactive tutoring sessions to students primarily in the K-12 segment. Gaotu Techedu’s rebranding in 2021 underscored its commitment to leveraging cutting-edge digital tools to expand access to quality instruction across core academic subjects.

The company’s main offerings include small-group and one-on-one classes in mathematics, Chinese, English, physics and chemistry, as well as targeted test preparation for high-stakes national and local examinations.