Gaotu Techedu Inc. (NYSE:GOTU) Shares Bought by Harvest Fund Management Co. Ltd

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 position in Gaotu Techedu Inc. (NYSE:GOTU - Free Report) by 116.1% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 1,023,915 shares of the company's stock after acquiring an additional 550,000 shares during the quarter. Harvest Fund Management Co. Ltd owned 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. PFG Investments LLC purchased a new position in Gaotu Techedu in the first quarter valued at approximately $76,000. Two Sigma Advisers LP purchased a new position in Gaotu Techedu in the fourth quarter valued at approximately $41,000. Point72 Asset Management L.P. purchased a new position in Gaotu Techedu in the fourth quarter valued at approximately $343,000. Lighthouse Investment Partners LLC purchased a new position in Gaotu Techedu in the fourth quarter valued at approximately $103,000. Finally, Two Sigma Securities LLC purchased a new position in Gaotu Techedu in the fourth quarter valued at approximately $86,000. Institutional investors and hedge funds own 48.42% of the company's stock.

Gaotu Techedu Stock Down 4.7%

Gaotu Techedu stock traded down $0.17 during mid-day trading on Wednesday, hitting $3.46. The company had a trading volume of 652,485 shares, compared to its average volume of 688,201. The stock has a market cap of $876.04 million, a price-to-earnings ratio of -7.06 and a beta of 0.36. The business has a fifty day moving average of $3.75 and a 200 day moving average of $3.22. Gaotu Techedu Inc. has a 1 year low of $1.87 and a 1 year high of $5.12.

Gaotu Techedu (NYSE:GOTU - Get Free Report) last announced 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. The business had revenue of $28.53 million for the quarter, compared to analyst estimates of $189.76 million. Gaotu Techedu had a negative net margin of 18.07% and a negative return on equity of 42.83%.

Gaotu Techedu announced that its Board of Directors has authorized 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 repurchase shares of its stock through open market purchases. Shares buyback programs are typically an indication that the company's board of directors believes its shares are undervalued.

Gaotu Techedu Company 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.