Gaotu Techedu (NYSE:GOTU) Shares Gap Up - Here's What Happened

Key Points

• Gaotu Techedu Inc. shares experienced a gap up, opening at $3.80 after closing at $3.69, with recent trading at $3.85.
• The company approved a stock repurchase program, indicating that its board believes the shares may be undervalued.
• Institutional investors currently hold 48.42% of Gaotu Techedu's stock, with several large firms increasing their stakes in the company.

Gaotu Techedu Inc. (NYSE:GOTU - Get Free Report)'s stock price gapped up before the market opened on Monday . The stock had previously closed at $3.69, but opened at $3.80. Gaotu Techedu shares last traded at $3.85, with a volume of 677,231 shares changing hands.

Gaotu Techedu Stock Up 4.2%

The firm has a fifty day moving average price of $3.69 and a two-hundred day moving average price of $3.42. The stock has a market capitalization of $973.52 million, a P/E ratio of -7.85 and a beta of 0.20.

Gaotu Techedu announced that its board has approved a stock repurchase program on Thursday, May 15th that allows the company to repurchase $0.00 in shares. This repurchase authorization allows the company to purchase shares of its stock through open market purchases. Stock repurchase programs are often a sign that the company's board believes its shares are undervalued.

Institutional Investors Weigh In On Gaotu Techedu

Several large investors have recently bought and sold shares of GOTU. Prime Capital Investment Advisors LLC bought a new stake in Gaotu Techedu in the 2nd quarter worth about $36,000. Two Sigma Advisers LP purchased a new position in Gaotu Techedu in the fourth quarter worth about $41,000. Quadrature Capital Ltd purchased a new position in Gaotu Techedu in the second quarter worth about $42,000. PFG Investments LLC purchased a new position in Gaotu Techedu in the first quarter worth about $76,000. Finally, Walleye Trading LLC boosted its position in Gaotu Techedu by 110.1% in the second quarter. Walleye Trading LLC now owns 21,722 shares of the company's stock worth $78,000 after purchasing an additional 11,383 shares during the last quarter. 48.42% of the stock is currently owned by institutional investors.

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.

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