Insider Buying: Gaotu Techedu (NYSE:GOTU) CEO Acquires $168,266.28 in Stock

Gaotu Techedu Inc. (NYSE:GOTU) CEO Xiangdong Chen bought 73,801 shares of the firm’s stock in a transaction on Tuesday, June 16th. The stock was bought at an average cost of $2.28 per share, for a total transaction of $168,266.28. Following the transaction, the chief executive officer directly owned 7,788,330 shares of the company’s stock, valued at $17,757,392.40. The trade was a 0.96% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink.

Xiangdong Chen also recently made the following trade(s):

• On Wednesday, June 17th, Xiangdong Chen bought 59,148 shares of Gaotu Techedu stock. The shares were bought at an average cost of $2.42 per share, with a total value of $143,138.16.
• On Thursday, June 11th, Xiangdong Chen purchased 200,000 shares of Gaotu Techedu stock. The shares were bought at an average price of $2.23 per share, with a total value of $446,000.00.

Gaotu Techedu Price Performance

Gaotu Techedu stock opened at $1.65 on Friday. The company’s 50 day simple moving average is $1.81 and its 200-day simple moving average is $2.08. The company has a market capitalization of $394.55 million, a price-to-earnings ratio of -6.85 and a beta of 0.60. Gaotu Techedu Inc. has a 1 year low of $1.40 and a 1 year high of $4.12. The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.89 and a current ratio of 0.91.

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

Analyst Upgrades and Downgrades

Separately, Weiss Ratings lowered Gaotu Techedu from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Thursday, June 11th. One analyst has rated the stock with a Sell rating, Based on data from MarketBeat, the stock has a consensus rating of “Sell”.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in GOTU. Millennium Management LLC increased its position in shares of Gaotu Techedu by 602.0% in the 1st quarter. Millennium Management LLC now owns 1,996,144 shares of the company’s stock valued at $6,487,000 after purchasing an additional 1,711,774 shares during the last quarter. American Century Companies Inc. raised its holdings in shares of Gaotu Techedu by 57.0% in the 2nd quarter. American Century Companies Inc. now owns 61,076 shares of the company’s stock valued at $220,000 after purchasing an additional 22,164 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its position in shares of Gaotu Techedu by 157.3% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 1,568,492 shares of the company’s stock worth $5,662,000 after purchasing an additional 958,782 shares during the last quarter. Walleye Trading LLC grew its stake in shares of Gaotu Techedu by 110.1% during the second quarter. Walleye Trading LLC now owns 21,722 shares of the company’s stock worth $78,000 after purchasing an additional 11,383 shares in the last quarter. Finally, Marshall Wace LLP grew its stake in shares of Gaotu Techedu by 3,628.9% during the second quarter. Marshall Wace LLP now owns 788,541 shares of the company’s stock worth $2,847,000 after purchasing an additional 767,394 shares in the last quarter. 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.