Gaotu Techedu (NYSE:GOTU) CEO Xiangdong Chen Acquires 167,051 Shares of Stock

Gaotu Techedu Inc. (NYSE:GOTU) CEO Xiangdong Chen bought 167,051 shares of Gaotu Techedu stock in a transaction on Thursday, June 18th. The stock was acquired at an average price of $2.50 per share, with a total value of $417,627.50. Following the completion of the purchase, the chief executive officer directly owned 8,014,529 shares of the company’s stock, valued at approximately $20,036,322.50. The trade was a 2.13% increase in their ownership of the stock. The transaction was disclosed in a document filed 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 purchased 59,148 shares of Gaotu Techedu stock. The shares were acquired at an average price of $2.42 per share, for a total transaction of $143,138.16.
• On Tuesday, June 16th, Xiangdong Chen purchased 73,801 shares of Gaotu Techedu stock. The shares were acquired at an average price of $2.28 per share, for a total transaction of $168,266.28.
• On Thursday, June 11th, Xiangdong Chen purchased 200,000 shares of Gaotu Techedu stock. The shares were acquired at an average price of $2.23 per share, for a total transaction of $446,000.00.

Gaotu Techedu Stock Up 2.1%

GOTU stock opened at $1.69 on Tuesday. The firm has a market cap of $404.15 million, a PE ratio of -7.02 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 fifty day simple moving average of $1.80 and a 200 day simple moving average of $2.07. The company has a current ratio of 0.91, a quick ratio of 0.89 and a debt-to-equity ratio of 0.10.

Gaotu Techedu (NYSE:GOTU) last posted its earnings results 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 the consensus estimate of $233.35 million.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of GOTU. Millennium Management LLC lifted its position in Gaotu Techedu by 602.0% during the 1st quarter. Millennium Management LLC now owns 1,996,144 shares of the company’s stock worth $6,487,000 after acquiring an additional 1,711,774 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its position 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 last quarter. Marshall Wace LLP increased 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 worth $2,847,000 after purchasing an additional 767,394 shares during the period. Ameriprise Financial Inc. bought a new position in shares of Gaotu Techedu in the second quarter worth about $910,000. Finally, Jump Financial LLC bought a new position in shares of Gaotu Techedu in the second quarter worth about $682,000. 48.42% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

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

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.