New Oriental Education & Technology Group (NYSE:EDU) Shares Gap Down - Time to Sell?

Key Points

• New Oriental Education & Technology Group shares gapped down from a previous closing price of $46.75 to an opening price of $41.95, last trading at $44.92.
• Despite recent challenges, analysts have made positive revisions, with Wall Street Zen upgrading the stock from "hold" to "buy" and JPMorgan raising its target price from $48.00 to $62.00.
• The company reported earnings of $0.61 per share for its last quarter, significantly exceeding the consensus estimate of $0.24, with year-over-year revenue growth of 9.4% to $1.24 billion.

New Oriental Education & Technology Group, Inc. (NYSE:EDU - Get Free Report)'s stock price gapped down before the market opened on Wednesday . The stock had previously closed at $46.75, but opened at $41.95. New Oriental Education & Technology Group shares last traded at $44.92, with a volume of 2,703,295 shares.

Analyst Ratings Changes

A number of research firms recently weighed in on EDU. Citigroup upgraded New Oriental Education & Technology Group from a "neutral" rating to a "buy" rating and dropped their price target for the company from $77.00 to $50.00 in a research note on Friday, June 27th. HSBC downgraded New Oriental Education & Technology Group from a "buy" rating to a "hold" rating in a research report on Wednesday. Hsbc Global Res upgraded New Oriental Education & Technology Group to a "hold" rating in a research report on Wednesday. Wall Street Zen raised shares of New Oriental Education & Technology Group from a "hold" rating to a "buy" rating in a research note on Monday, May 5th. Finally, JPMorgan Chase & Co. raised shares of New Oriental Education & Technology Group from a "neutral" rating to an "overweight" rating and increased their target price for the stock from $48.00 to $62.00 in a report on Tuesday, June 24th. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating and three have issued a buy rating to the stock. Based on data from MarketBeat, New Oriental Education & Technology Group presently has a consensus rating of "Hold" and a consensus target price of $52.00.

New Oriental Education & Technology Group Stock Down 0.5%

The stock's 50-day moving average is $48.99 and its 200 day moving average is $48.75. The stock has a market capitalization of $7.45 billion, a PE ratio of 19.50 and a beta of 0.28.

New Oriental Education & Technology Group (NYSE:EDU - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The company reported $0.61 earnings per share for the quarter, beating the consensus estimate of $0.24 by $0.37. New Oriental Education & Technology Group had a net margin of 7.59% and a return on equity of 11.24%. The firm had revenue of $1.24 billion during the quarter, compared to analysts' expectations of $1.19 billion. During the same quarter last year, the company posted $0.22 EPS. The company's quarterly revenue was up 9.4% compared to the same quarter last year. As a group, equities research analysts forecast that New Oriental Education & Technology Group, Inc. will post 2.75 EPS for the current year.

Institutional Trading of New Oriental Education & Technology Group

Several large investors have recently modified their holdings of EDU. Vanguard Personalized Indexing Management LLC grew its holdings in New Oriental Education & Technology Group by 26.3% during the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 5,881 shares of the company's stock valued at $317,000 after buying an additional 1,226 shares in the last quarter. Siren L.L.C. lifted its holdings in New Oriental Education & Technology Group by 16.1% in the 1st quarter. Siren L.L.C. now owns 79,500 shares of the company's stock worth $3,801,000 after purchasing an additional 11,000 shares in the last quarter. First Beijing Investment Ltd increased its position in shares of New Oriental Education & Technology Group by 1,997.8% during the 1st quarter. First Beijing Investment Ltd now owns 5,456,378 shares of the company's stock valued at $260,869,000 after purchasing an additional 5,196,281 shares during the last quarter. Serenity Capital Management PTE. LTD. lifted its holdings in shares of New Oriental Education & Technology Group by 635.4% in the 1st quarter. Serenity Capital Management PTE. LTD. now owns 245,498 shares of the company's stock worth $11,737,000 after buying an additional 212,116 shares during the period. Finally, Yiheng Capital Management L.P. raised its stake in shares of New Oriental Education & Technology Group by 15.4% in the first quarter. Yiheng Capital Management L.P. now owns 598,080 shares of the company's stock worth $28,594,000 after purchasing an additional 79,766 shares during the last quarter.

About New Oriental Education & Technology Group

New Oriental Education & Technology Group, Inc is a holding company, which engages in the provision of private educational services. It operates through the following segments: Educational Services and Test Preparation Courses, Private Label Products and Livestreaming E-Commerce, Overseas Study Consulting Services, and Educational Materials and Distribution.