Gaotu Techedu (NYSE:GOTU) Trading Up 9.3% - What's Next?

Gaotu Techedu Inc. (NYSE:GOTU - Get Free Report) shares shot up 9.3% during mid-day trading on Tuesday . The stock traded as high as $3.84 and last traded at $3.93. 344,539 shares were traded during trading, a decline of 84% from the average session volume of 2,094,631 shares. The stock had previously closed at $3.59.

Gaotu Techedu Price Performance

The stock has a market cap of $1.01 billion, a price-to-earnings ratio of -8.15 and a beta of 0.36. The company's fifty day moving average price is $3.73 and its 200-day moving average price is $3.10.

Gaotu Techedu (NYSE:GOTU - Get Free Report) last issued 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. The firm had revenue of $28.53 million for the quarter, compared to analyst estimates of $189.76 million. Gaotu Techedu had a negative return on equity of 42.83% and a negative net margin of 18.07%.

Gaotu Techedu announced that its board has approved a stock buyback program on Thursday, May 15th that authorizes the company to repurchase $0.00 in outstanding shares. This repurchase authorization authorizes the company to reacquire shares of its stock through open market purchases. Stock repurchase programs are often an indication that the company's management believes its stock is undervalued.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Catalyst Funds Management Pty Ltd acquired a new stake in shares of Gaotu Techedu in the 4th quarter worth $38,000. Two Sigma Advisers LP acquired a new stake in shares of Gaotu Techedu in the 4th quarter worth $41,000. PFG Investments LLC acquired a new stake in shares of Gaotu Techedu in the 1st quarter worth $76,000. Two Sigma Securities LLC acquired a new stake in shares of Gaotu Techedu in the 4th quarter worth $86,000. Finally, Virtu Financial LLC acquired a new stake in shares of Gaotu Techedu in the 1st quarter worth $137,000. 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.

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