Gaotu Techedu (NYSE:GOTU) Stock Price Up 1.3% - Here's Why

Gaotu Techedu Inc. (NYSE:GOTU - Get Free Report)'s stock price shot up 1.3% during trading on Friday . The company traded as high as $3.92 and last traded at $3.81. 652,915 shares traded hands during mid-day trading, a decline of 69% from the average session volume of 2,101,147 shares. The stock had previously closed at $3.76.

Gaotu Techedu Price Performance

The firm's 50 day moving average is $3.77 and its 200 day moving average is $3.14. The firm has a market cap of $938.07 million, a P/E ratio of -7.56 and a beta of 0.36.

Gaotu Techedu (NYSE:GOTU - Get Free Report) last announced its earnings results on Thursday, May 15th. The company reported $0.07 EPS for the quarter, beating analysts' consensus estimates of ($0.05) by $0.12. Gaotu Techedu had a negative net margin of 18.07% and a negative return on equity of 42.83%. The business had revenue of $28.53 million during the quarter, compared to analysts' expectations of $189.76 million.

Gaotu Techedu announced that its Board of Directors has approved a stock repurchase plan on Thursday, May 15th that allows the company to buyback $0.00 in shares. This buyback authorization allows the company to purchase shares of its stock through open market purchases. Stock buyback plans are generally an indication that the company's management believes its stock is undervalued.

Institutional Investors Weigh In On Gaotu Techedu

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Norges Bank acquired a new stake in shares of Gaotu Techedu during the fourth quarter worth about $3,583,000. Barclays PLC lifted its position in shares of Gaotu Techedu by 195.8% during the fourth quarter. Barclays PLC now owns 215,982 shares of the company's stock worth $473,000 after purchasing an additional 142,974 shares in the last quarter. Marshall Wace LLP acquired a new stake in shares of Gaotu Techedu during the fourth quarter worth about $781,000. Two Sigma Securities LLC acquired a new stake in Gaotu Techedu in the fourth quarter valued at approximately $86,000. Finally, Lighthouse Investment Partners LLC acquired a new stake in Gaotu Techedu in the fourth quarter valued at approximately $103,000. Hedge funds and other institutional investors own 48.42% of the company's stock.

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.