Gaotu Techedu (NYSE:GOTU) Trading Down 2.5% – What’s Next?

Gaotu Techedu Inc. (NYSE:GOTU)’s stock price was down 2.5% during trading on Wednesday . The company traded as low as $2.22 and last traded at $2.2620. Approximately 932,778 shares changed hands during trading, an increase of 172% from the average daily volume of 343,402 shares. The stock had previously closed at $2.32.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on GOTU. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Gaotu Techedu in a research note on Monday, December 29th. Wall Street Zen upgraded Gaotu Techedu from a “sell” rating to a “hold” rating in a report on Saturday, December 27th. One equities research analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, the company has an average rating of “Sell”.

Gaotu Techedu Stock Performance

The stock has a market cap of $572.71 million, a price-to-earnings ratio of -10.77 and a beta of 0.25. The company has a 50-day simple moving average of $2.43 and a two-hundred day simple moving average of $3.08.

Gaotu Techedu (NYSE:GOTU) last released its quarterly earnings data on Wednesday, November 26th. The company reported ($0.09) EPS for the quarter, beating the consensus estimate of ($0.89) by $0.80. The company had revenue of $31.24 million during the quarter, compared to the consensus estimate of $1.57 billion. Gaotu Techedu had a negative return on equity of 21.95% and a negative net margin of 6.45%.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. JPMorgan Chase & Co. bought a new stake in shares of Gaotu Techedu in the 3rd quarter valued at about $474,000. Public Employees Retirement System of Ohio increased its position in Gaotu Techedu by 27.1% during the third quarter. Public Employees Retirement System of Ohio now owns 255,437 shares of the company’s stock worth $833,000 after buying an additional 54,453 shares during the last quarter. National Bank of Canada FI acquired a new position in Gaotu Techedu during the third quarter worth approximately $293,000. Centiva Capital LP bought a new stake in Gaotu Techedu in the third quarter valued at approximately $133,000. Finally, Bank of America Corp DE lifted its position in shares of Gaotu Techedu by 10.5% in the third quarter. Bank of America Corp DE now owns 164,737 shares of the company’s stock valued at $537,000 after buying an additional 15,651 shares during the last quarter. 48.42% of the stock is currently owned by institutional investors and hedge funds.

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.