274,310 Shares in Gaotu Techedu Inc. (NYSE:GOTU) Purchased by Pinpoint Asset Management Ltd

Key Points

• Pinpoint Asset Management Ltd has acquired 274,310 shares of Gaotu Techedu Inc. (NYSE:GOTU), valued at approximately $892,000, representing about 0.11% of the company's total shares.
• Gaotu Techedu's stock opened at $3.62, with a market cap of $915.28 million and a one-year trading range between $1.87 and $5.11.
• The company reported a quarterly earnings per share of $0.07, exceeding expectations, and declared a stock repurchase program, which typically indicates a belief that the stock is undervalued.

Pinpoint Asset Management Ltd bought a new stake in Gaotu Techedu Inc. (NYSE:GOTU - Free Report) in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 274,310 shares of the company's stock, valued at approximately $892,000. Pinpoint Asset Management Ltd owned about 0.11% of Gaotu Techedu as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also made changes to their positions in the company. Two Sigma Advisers LP acquired a new position in Gaotu Techedu in the 4th quarter valued at $41,000. PFG Investments LLC purchased a new stake in shares of Gaotu Techedu in the first quarter valued at about $76,000. Two Sigma Securities LLC purchased a new stake in shares of Gaotu Techedu in the fourth quarter valued at about $86,000. Lighthouse Investment Partners LLC acquired a new position in shares of Gaotu Techedu during the fourth quarter worth about $103,000. Finally, XTX Topco Ltd purchased a new position in Gaotu Techedu during the first quarter worth about $205,000. Institutional investors and hedge funds own 48.42% of the company's stock.

Gaotu Techedu Stock Performance

NYSE:GOTU traded up $0.02 during mid-day trading on Friday, reaching $3.66. The stock had a trading volume of 287,709 shares, compared to its average volume of 679,428. Gaotu Techedu Inc. has a twelve month low of $1.87 and a twelve month high of $4.64. The business has a 50 day simple moving average of $3.73 and a 200 day simple moving average of $3.29. The firm has a market capitalization of $926.68 million, a price-to-earnings ratio of -7.47 and a beta of 0.20.

Gaotu Techedu (NYSE:GOTU - Get Free Report) last issued its earnings results on Thursday, May 15th. The company reported $0.07 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.05) by $0.12. Gaotu Techedu had a negative return on equity of 42.83% and a negative net margin of 18.07%. The business had revenue of $28.53 million during the quarter, compared to the consensus estimate of $189.76 million.

Gaotu Techedu announced that its board has approved a share repurchase plan on Thursday, May 15th that allows the company to repurchase $0.00 in shares. This repurchase authorization allows the company to buy shares of its stock through open market purchases. Shares repurchase plans are typically an indication that the company's board believes its shares are undervalued.

Gaotu Techedu Profile

Gaotu Techedu Inc, a technology-driven education company, provides learning services, educational content, and digitalized learning products in the People's Republic of China. The company offers traditional online academic subject tutoring services that covers academic subjects, such as mathematics, English, Chinese, physics, chemistry, biology, history, geography, and political science for students; non-academic tutoring services; personal interest courses comprising chess learning, family relationships and education, humanities, and science courses; and professional courses primarily for college students and adults preparing for professional qualification exams, such as teacher's qualification, Chartered Financial Analyst designation, Certified Public Accountant designation, and other exams.