Gaotu Techedu (NYSE:GOTU) Shares Up 7.1% - Here's Why

Gaotu Techedu Inc. (NYSE:GOTU - Get Free Report) shot up 7.1% on Thursday . The company traded as high as $3.79 and last traded at $3.85. 408,837 shares were traded during trading, a decline of 82% from the average session volume of 2,221,612 shares. The stock had previously closed at $3.59.

Gaotu Techedu Stock Down 0.5%

The company's fifty day moving average price is $3.20 and its 200-day moving average price is $2.83. The stock has a market capitalization of $959.58 million, a PE ratio of -6.65 and a beta of 0.29.

Gaotu Techedu (NYSE:GOTU - Get Free Report) last announced its quarterly earnings data on Thursday, May 15th. The company reported $0.07 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.05) by $0.12. Gaotu Techedu had a negative return on equity of 37.79% and a negative net margin of 26.36%. 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 has authorized a share repurchase plan on Thursday, May 15th that permits the company to buyback $0.00 in shares. This buyback authorization permits the company to purchase shares of its stock through open market purchases. Stock buyback plans are often an indication that the company's board believes its shares are undervalued.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Catalyst Funds Management Pty Ltd purchased a new position in Gaotu Techedu in the 4th quarter worth approximately $38,000. Norges Bank purchased a new stake in shares of Gaotu Techedu during the fourth quarter valued at $3,583,000. Barclays PLC increased its holdings in Gaotu Techedu by 195.8% in the 4th quarter. Barclays PLC now owns 215,982 shares of the company's stock worth $473,000 after buying an additional 142,974 shares in the last quarter. Marshall Wace LLP purchased a new position in shares of Gaotu Techedu during the fourth quarter valued at approximately $781,000. Finally, Two Sigma Securities LLC bought a new stake in shares of Gaotu Techedu in the fourth quarter worth $86,000. Institutional investors own 48.42% of the company's stock.

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.