National Bank of Canada FI Takes Position in Gaotu Techedu Inc. $GOTU

Key Points

• National Bank of Canada FI has acquired 550,000 shares of Gaotu Techedu Inc. (NYSE:GOTU), valued at approximately $1,788,000, representing about 0.21% of the company.
• Gaotu Techedu reported a Q1 EPS of $0.07, exceeding analysts' expectations of ($0.05), but reported revenues significantly below estimates at $28.53 million.
• The company has announced a share buyback plan, typically indicating that its board views its stock as undervalued, although the amount authorized for repurchase is $0.00.

National Bank of Canada FI bought a new stake in shares of Gaotu Techedu Inc. (NYSE:GOTU - Free Report) in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund bought 550,000 shares of the company's stock, valued at approximately $1,788,000. National Bank of Canada FI owned about 0.21% of Gaotu Techedu at the end of the most recent reporting period.

Other institutional investors have also modified their holdings of the company. Harvest Fund Management Co. Ltd grew its position 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 valued at $3,317,000 after buying an additional 550,000 shares in the last quarter. Marshall Wace LLP purchased a new stake in Gaotu Techedu during the fourth quarter valued at about $781,000. Pinpoint Asset Management Ltd purchased a new stake in Gaotu Techedu during the first quarter valued at about $892,000. Point72 Asset Management L.P. purchased a new stake in Gaotu Techedu during the fourth quarter valued at about $343,000. Finally, Barclays PLC lifted 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 buying an additional 142,974 shares in the last quarter. Institutional investors own 48.42% of the company's stock.

Gaotu Techedu Stock Down 0.9%

Shares of GOTU traded down $0.0350 during trading hours on Tuesday, reaching $3.7650. The company's stock had a trading volume of 132,985 shares, compared to its average volume of 1,746,830. The firm has a market cap of $953.26 million, a price-to-earnings ratio of -7.68 and a beta of 0.20. Gaotu Techedu Inc. has a 1-year low of $1.87 and a 1-year high of $4.59. The company has a 50 day moving average of $3.71 and a two-hundred day moving average of $3.38.

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