Harvest Fund Management Co. Ltd Has $3.32 Million Stock Position in Gaotu Techedu Inc. (NYSE:GOTU)

Key Points

• Harvest Fund Management Co. Ltd increased its stake in Gaotu Techedu Inc. by 116.1%, now owning over 1 million shares valued at approximately $3.3 million.
• Gaotu Techedu recently reported earnings of $0.07 per share, surpassing estimates, but its revenue was significantly below analysts' expectations at $28.53 million.
• The company has approved a stock repurchase plan, indicating that its board believes the shares may be undervalued.

Harvest Fund Management Co. Ltd boosted its holdings in shares of Gaotu Techedu Inc. (NYSE:GOTU - Free Report) by 116.1% in the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 1,023,915 shares of the company's stock after purchasing an additional 550,000 shares during the quarter. Harvest Fund Management Co. Ltd owned about 0.39% of Gaotu Techedu worth $3,317,000 at the end of the most recent quarter.

Several other hedge funds have also recently added to or reduced their stakes in GOTU. Two Sigma Advisers LP bought a new stake in shares of Gaotu Techedu in the 4th quarter worth approximately $41,000. PFG Investments LLC bought a new stake in shares of Gaotu Techedu in the 1st quarter worth approximately $76,000. Two Sigma Securities LLC bought a new stake in shares of Gaotu Techedu in the 4th quarter worth approximately $86,000. Lighthouse Investment Partners LLC bought a new stake in shares of Gaotu Techedu in the 4th quarter worth approximately $103,000. Finally, Point72 Asset Management L.P. bought a new stake in shares of Gaotu Techedu in the 4th quarter worth approximately $343,000. Institutional investors own 48.42% of the company's stock.

Gaotu Techedu Stock Performance

Shares of GOTU stock remained flat at $3.52 during mid-day trading on Friday. The company's stock had a trading volume of 508,493 shares, compared to its average volume of 687,920. The company has a 50 day moving average of $3.74 and a 200 day moving average of $3.24. Gaotu Techedu Inc. has a 52 week low of $1.87 and a 52 week high of $5.11. The company has a market capitalization of $891.23 million, a price-to-earnings ratio of -7.18 and a beta of 0.20.

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

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