Gaotu Techedu (NYSE:GOTU) Trading Down 3.9% - What's Next?

Key Points

• Gaotu Techedu's stock fell 3.9%, trading at $3.56, with a significant drop in trading volume of 87% compared to the average.
• The company reported a loss of $0.12 EPS in its latest quarter, exceeding expectations but generating revenues significantly lower than estimates at $27.09 million.
• Institutional investors own 48.42% of Gaotu Techedu, with notable increases in stakes from several hedge funds in recent quarters.

Gaotu Techedu Inc. (NYSE:GOTU - Get Free Report)'s stock price traded down 3.9% during mid-day trading on Monday . The company traded as low as $3.56 and last traded at $3.56. 221,759 shares were traded during mid-day trading, a decline of 87% from the average session volume of 1,662,302 shares. The stock had previously closed at $3.70.

Gaotu Techedu Trading Down 2.6%

The business has a 50 day simple moving average of $3.69 and a 200-day simple moving average of $3.53. The stock has a market capitalization of $912.75 million, a price-to-earnings ratio of -9.49 and a beta of 0.24.

Gaotu Techedu (NYSE:GOTU - Get Free Report) last issued its quarterly earnings results on Tuesday, August 26th. The company reported ($0.12) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.16) by $0.04. Gaotu Techedu had a negative return on equity of 37.66% and a negative net margin of 12.97%.The firm had revenue of $27.09 million for the quarter, compared to analyst estimates of $182.85 million. Gaotu Techedu has set its Q3 2025 guidance at EPS.

Institutional Trading of Gaotu Techedu

A number of hedge funds have recently added to or reduced their stakes in GOTU. Millennium Management LLC boosted its stake in Gaotu Techedu by 602.0% in the 1st quarter. Millennium Management LLC now owns 1,996,144 shares of the company's stock worth $6,487,000 after buying an additional 1,711,774 shares during the last quarter. Acadian Asset Management LLC acquired a new position in shares of Gaotu Techedu in the 2nd quarter valued at about $3,865,000. Arrowstreet Capital Limited Partnership lifted its stake in shares of Gaotu Techedu by 157.3% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 1,568,492 shares of the company's stock valued at $5,662,000 after purchasing an additional 958,782 shares in the last quarter. Marshall Wace LLP lifted its stake in shares of Gaotu Techedu by 3,628.9% in the 2nd quarter. Marshall Wace LLP now owns 788,541 shares of the company's stock valued at $2,847,000 after purchasing an additional 767,394 shares in the last quarter. Finally, Harvest Fund Management Co. Ltd lifted its stake in shares of 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 purchasing an additional 550,000 shares in the last quarter. 48.42% of the stock is owned by institutional investors and hedge funds.

About Gaotu Techedu

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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