Vanguard Group Inc. Reduces Holdings in Gaotu Techedu Inc. $GOTU

Key Points

• Vanguard Group Inc. reduced its holdings in Gaotu Techedu by 1.8%, owning 5,456,660 shares valued at approximately $17.73 million after selling 99,426 shares in the first quarter.
• Gaotu Techedu reported a quarterly loss of ($0.12) EPS, better than the expected ($0.16), but total revenue of $27.09 million was significantly below analyst expectations of $182.85 million.
• The company has authorized a stock buyback plan, suggesting that its board believes the stock is undervalued, despite a challenging financial outlook indicated by negative margins and returns.

Vanguard Group Inc. reduced its position in Gaotu Techedu Inc. (NYSE:GOTU - Free Report) by 1.8% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 5,456,660 shares of the company's stock after selling 99,426 shares during the period. Vanguard Group Inc. owned 2.10% of Gaotu Techedu worth $17,734,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Harvest Fund Management Co. Ltd increased its stake in Gaotu Techedu by 116.1% in the 1st quarter. Harvest Fund Management Co. Ltd now owns 1,023,915 shares of the company's stock worth $3,317,000 after acquiring an additional 550,000 shares during the last quarter. Marshall Wace LLP purchased a new position in shares of Gaotu Techedu in the fourth quarter valued at $781,000. Point72 Asset Management L.P. bought a new stake in Gaotu Techedu in the fourth quarter worth $343,000. Barclays PLC raised its stake in Gaotu Techedu by 195.8% during the fourth quarter. Barclays PLC now owns 215,982 shares of the company's stock valued at $473,000 after purchasing an additional 142,974 shares in the last quarter. Finally, XTX Topco Ltd bought a new position in Gaotu Techedu during the first quarter valued at $205,000. 48.42% of the stock is owned by institutional investors.

Gaotu Techedu Stock Performance

Shares of NYSE:GOTU traded down $0.01 on Wednesday, reaching $3.77. The company's stock had a trading volume of 313,550 shares, compared to its average volume of 1,714,818. The company has a 50-day simple moving average of $3.68 and a 200 day simple moving average of $3.47. The company has a market cap of $955.54 million, a P/E ratio of -9.91 and a beta of 0.24. Gaotu Techedu Inc. has a 52-week low of $1.87 and a 52-week high of $4.59.

Gaotu Techedu (NYSE:GOTU - Get Free Report) last announced its quarterly earnings results on Tuesday, August 26th. The company reported ($0.12) EPS for the quarter, beating analysts' consensus estimates of ($0.16) by $0.04. Gaotu Techedu had a negative net margin of 12.97% and a negative return on equity of 37.66%. The firm had revenue of $27.09 million during the quarter, compared to the consensus estimate of $182.85 million. Gaotu Techedu has set its Q3 2025 guidance at EPS.

Gaotu Techedu declared that its Board of Directors has approved a share buyback program on Thursday, May 15th that authorizes the company to repurchase $0.00 in shares. This repurchase authorization authorizes the company to reacquire shares of its stock through open market purchases. Stock repurchase programs are generally an indication that the company's board believes its shares are undervalued.

About Gaotu Techedu

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.