New Oriental Education & Technology Group (NYSE:EDU) Shares Down 5.8% After Insider Selling

Key Points

• New Oriental Education & Technology Group shares fell 5.8% to about $55.64 after director Yue Zhuge disclosed two stock sales totaling 2,170 shares and $128,904. The trades significantly reduced the director’s holdings.
• Analyst sentiment remains generally positive but mixed: the stock has a “Moderate Buy” consensus rating and a $64.54 average price target, while recent ratings included upgrades, holds, and a target-price reduction.
• Institutional interest increased, with firms including Invesco, Discerene Group, UBS Asset Management, Orbis Allan Gray, and Federated Hermes adding or initiating sizable positions.

New Oriental Education & Technology Group, Inc. (NYSE:EDU - Get Free Report) shares were down 5.8% during mid-day trading on Tuesday after an insider sold shares in the company. The stock traded as low as $56.00 and last traded at $55.6440. 202,707 shares were traded during mid-day trading, a decline of 75% from the average session volume of 818,572 shares. The stock had previously closed at $59.06.

Specifically, Director Yue Zhuge sold 570 shares of the company's stock in a transaction on Friday, July 31st. The shares were sold at an average price of $58.99, for a total value of $33,624.30. Following the completion of the sale, the director owned 1,600 shares in the company, valued at $94,384. This represents a 26.27% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Yue Zhuge sold 1,600 shares of the stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $59.55, for a total transaction of $95,280.00. Following the sale, the director owned 2,000 shares of the company's stock, valued at approximately $119,100. This represents a 44.44% decrease in their position. The disclosure for this sale is available in the SEC filing.

Wall Street Analyst Weigh In

A number of research firms have commented on EDU. New Street Research set a $56.50 price objective on shares of New Oriental Education & Technology Group in a research note on Thursday, July 30th. The Goldman Sachs Group upgraded shares of New Oriental Education & Technology Group from a "neutral" rating to a "buy" rating and decreased their target price for the stock from $67.00 to $65.00 in a research note on Thursday, June 11th. Wall Street Zen lowered New Oriental Education & Technology Group from a "buy" rating to a "hold" rating in a report on Saturday. Finally, Weiss Ratings restated a "hold (c)" rating on shares of New Oriental Education & Technology Group in a research report on Tuesday, July 21st. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, New Oriental Education & Technology Group presently has an average rating of "Moderate Buy" and a consensus target price of $64.54.

New Oriental Education & Technology Group Stock Performance

The company has a market cap of $8.80 billion, a PE ratio of 18.77, a P/E/G ratio of 0.62 and a beta of 0.24. The stock's 50-day simple moving average is $48.12 and its 200 day simple moving average is $53.10.

Institutional Investors Weigh In On New Oriental Education & Technology Group

Hedge funds have recently added to or reduced their stakes in the company. Invesco Ltd. increased its position in New Oriental Education & Technology Group by 5,697.3% during the 4th quarter. Invesco Ltd. now owns 4,610,905 shares of the company's stock worth $253,738,000 after purchasing an additional 4,531,370 shares during the period. Discerene Group LP lifted its holdings in shares of New Oriental Education & Technology Group by 23.7% in the 4th quarter. Discerene Group LP now owns 1,955,430 shares of the company's stock valued at $107,607,000 after buying an additional 374,916 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new stake in shares of New Oriental Education & Technology Group in the 4th quarter valued at approximately $86,526,000. Orbis Allan Gray Ltd boosted its stake in shares of New Oriental Education & Technology Group by 40.2% in the fourth quarter. Orbis Allan Gray Ltd now owns 837,551 shares of the company's stock valued at $46,090,000 after buying an additional 240,053 shares in the last quarter. Finally, Federated Hermes Inc. boosted its stake in shares of New Oriental Education & Technology Group by 13,865.2% in the fourth quarter. Federated Hermes Inc. now owns 742,249 shares of the company's stock valued at $40,846,000 after buying an additional 736,934 shares in the last quarter.

About New Oriental Education & Technology Group

New Oriental Education & Technology Group NYSE: EDU is one of China's leading providers of private educational services, specializing in language training, test preparation and consulting for overseas study. The company's offerings span a range of subjects, including English language instruction, preparatory courses for examinations such as the TOEFL, GRE and GMAT, and K-12 after-school tutoring. New Oriental's curriculum is delivered through a combination of in-person learning centers and digital platforms, enabling students across various regions to access its educational resources.

Founded in 1993 by Michael Yu Minhong in Beijing, New Oriental began as a small language school and quickly expanded its footprint.

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