Insider Buying: Gaotu Techedu (NYSE:GOTU) CEO Buys 200,000 Shares of Stock

Gaotu Techedu Inc. (NYSE:GOTU) CEO Xiangdong Chen purchased 200,000 shares of the stock in a transaction that occurred on Thursday, June 11th. The shares were purchased at an average cost of $2.23 per share, for a total transaction of $446,000.00. Following the completion of the acquisition, the chief executive officer directly owned 7,714,529 shares of the company’s stock, valued at $17,203,399.67. This represents a 2.66% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website.

Gaotu Techedu Stock Performance

GOTU opened at $1.49 on Friday. The company has a quick ratio of 0.89, a current ratio of 0.91 and a debt-to-equity ratio of 0.10. The company has a market cap of $356.18 million, a price-to-earnings ratio of -6.19 and a beta of 0.60. Gaotu Techedu Inc. has a 52-week low of $1.40 and a 52-week high of $4.12. The firm’s fifty day simple moving average is $1.86 and its two-hundred day simple moving average is $2.12.

Gaotu Techedu (NYSE:GOTU) last posted its quarterly earnings data on Tuesday, June 2nd. The company reported $0.02 earnings per share (EPS) for the quarter. The business had revenue of $245.04 million for the quarter, compared to the consensus estimate of $233.35 million. Gaotu Techedu had a negative net margin of 6.42% and a negative return on equity of 29.69%.

Institutional Investors Weigh In On Gaotu Techedu

Hedge funds and other institutional investors have recently bought and sold shares of the company. Millennium Management LLC increased its position in shares of Gaotu Techedu by 602.0% during the first quarter. Millennium Management LLC now owns 1,996,144 shares of the company’s stock valued at $6,487,000 after acquiring an additional 1,711,774 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its stake in shares of Gaotu Techedu by 157.3% in the second quarter. Arrowstreet Capital Limited Partnership now owns 1,568,492 shares of the company’s stock valued at $5,662,000 after purchasing an additional 958,782 shares during the period. Marshall Wace LLP boosted its stake in shares of Gaotu Techedu by 3,628.9% in the second quarter. Marshall Wace LLP now owns 788,541 shares of the company’s stock valued at $2,847,000 after purchasing an additional 767,394 shares during the period. Ameriprise Financial Inc. purchased a new position in shares of Gaotu Techedu in the second quarter valued at approximately $910,000. Finally, Jump Financial LLC purchased a new position in shares of Gaotu Techedu in the second quarter valued at approximately $682,000. 48.42% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Separately, Weiss Ratings raised shares of Gaotu Techedu from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Friday, May 8th. One 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 Company Profile

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.