Gaotu Techedu (NYSE:GOTU) Hits New 1-Year Low - Here's What Happened

Key Points

• Gaotu Techedu hit a new 52-week low — the stock traded as low as $1.93 and last at $1.9550 on Wednesday, with about 878,341 shares changing hands.
• Analyst sentiment remains negative — MarketBeat shows a consensus "Sell" rating (Weiss Ratings reiterated "sell") despite one upgrade to "hold" from Wall Street Zen.
• Quarterly results beat estimates but the company is still unprofitable — Gaotu reported EPS of ($0.05) vs. ($0.08) expected and revenue of $240.9M vs. $232.5M expected, yet it posted negative ROE (~-21.09%) and a -5.31% net margin.

Gaotu Techedu Inc. (NYSE:GOTU - Get Free Report) reached a new 52-week low during trading on Wednesday . The stock traded as low as $1.93 and last traded at $1.9550, with a volume of 878341 shares changing hands. The stock had previously closed at $1.99.

Analyst Ratings Changes

GOTU has been the subject of a number of research reports. Weiss Ratings restated a "sell (e+)" rating on shares of Gaotu Techedu in a research note on Monday, December 29th. Wall Street Zen upgraded Gaotu Techedu from a "sell" rating to a "hold" rating in a research note on Saturday, December 27th. One research analyst has rated the stock with a Sell rating, According to data from MarketBeat, the stock has a consensus rating of "Sell".

Gaotu Techedu Price Performance

The company has a debt-to-equity ratio of 0.03, a quick ratio of 0.92 and a current ratio of 0.94. The firm has a market capitalization of $494.99 million, a P/E ratio of -10.29 and a beta of 0.46. The business has a fifty day moving average of $2.16 and a 200-day moving average of $2.59.

Gaotu Techedu (NYSE:GOTU - Get Free Report) last announced its quarterly earnings results on Thursday, March 5th. The company reported ($0.05) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.08) by $0.03. The company had revenue of $240.88 million during the quarter, compared to analyst estimates of $232.47 million. Gaotu Techedu had a negative return on equity of 21.09% and a negative net margin of 5.31%.

Institutional Investors Weigh In On Gaotu Techedu

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. grew its holdings in Gaotu Techedu by 1.2% in the 3rd quarter. Vanguard Group Inc. now owns 5,192,148 shares of the company's stock valued at $16,926,000 after buying an additional 63,891 shares during the last quarter. Millennium Management LLC boosted its position in shares of Gaotu Techedu by 602.0% during the 1st quarter. Millennium Management LLC now owns 1,996,144 shares of the company's stock valued at $6,487,000 after acquiring an additional 1,711,774 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its stake in Gaotu Techedu by 157.3% in the second quarter. Arrowstreet Capital Limited Partnership now owns 1,568,492 shares of the company's stock valued at $5,662,000 after acquiring an additional 958,782 shares during the period. Marshall Wace LLP raised its position in Gaotu Techedu by 3,628.9% in the second quarter. Marshall Wace LLP now owns 788,541 shares of the company's stock worth $2,847,000 after purchasing an additional 767,394 shares in the last quarter. Finally, Norges Bank bought a new position in Gaotu Techedu during the second quarter worth about $1,769,000. 48.42% of the stock is owned by institutional investors and hedge funds.

Gaotu Techedu Company Profile

Gaotu Techedu Inc NYSE: GOTU, formerly known as GSX Techedu, is a Beijing-based provider of online education services in China. Since its founding in 2014, the company has built a technology-driven platform that delivers live, interactive tutoring sessions to students primarily in the K-12 segment. Gaotu Techedu's rebranding in 2021 underscored its commitment to leveraging cutting-edge digital tools to expand access to quality instruction across core academic subjects.

The company's main offerings include small-group and one-on-one classes in mathematics, Chinese, English, physics and chemistry, as well as targeted test preparation for high-stakes national and local examinations.

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