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

Key Points

• Gaotu Techedu shares hit a new 52-week low, trading as low as $1.99 and last at $2.01 on volume of about 1,069,616 shares (previous close $2.18).
• Analyst sentiment remains weak with an average rating of 'Sell', though Wall Street Zen recently upgraded the stock to 'Hold' while Weiss Ratings reiterated a 'sell (e+)' verdict.
• Institutional investors own roughly 48.42% of the company, and several large funds (Vanguard, Millennium, Arrowstreet, Marshall Wace) have materially increased their stakes recently.

Gaotu Techedu Inc. (NYSE:GOTU - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Thursday . The company traded as low as $1.99 and last traded at $2.01, with a volume of 1069616 shares. The stock had previously closed at $2.18.

Analyst Ratings Changes

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

Gaotu Techedu Price Performance

The business's 50-day simple moving average is $2.28 and its two-hundred day simple moving average is $2.77. The stock has a market capitalization of $503.85 million, a price-to-earnings ratio of -9.48 and a beta of 0.46.

Hedge Funds Weigh In On Gaotu Techedu

A number of institutional investors and hedge funds have recently bought and sold shares of GOTU. Vanguard Group Inc. boosted its stake in shares of Gaotu Techedu by 1.2% in the third quarter. Vanguard Group Inc. now owns 5,192,148 shares of the company's stock valued at $16,926,000 after purchasing an additional 63,891 shares during the period. Millennium Management LLC boosted its holdings in Gaotu Techedu by 602.0% in the first quarter. Millennium Management LLC now owns 1,996,144 shares of the company's stock valued at $6,487,000 after purchasing an additional 1,711,774 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its stake in shares of Gaotu Techedu by 157.3% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 1,568,492 shares of the company's stock valued at $5,662,000 after buying an additional 958,782 shares during the last quarter. Acadian Asset Management LLC acquired a new stake in shares of Gaotu Techedu during the second quarter worth approximately $3,865,000. Finally, Marshall Wace LLP increased its stake in shares of 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 buying an additional 767,394 shares during the last quarter. Hedge funds and other institutional investors own 48.42% of the company's stock.

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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