New Oriental Education & Technology Group (NYSE:EDU) Shares Gap Up - Here's Why

Key Points

• Shares gapped up pre-market, opening at $56.99 after a $54.66 close and last trading around $57.86 on roughly 170,000 shares.
• Analyst sentiment turned positive, with a consensus "Buy" (average target $65.84) following multiple upgrades—2 Strong Buy, 4 Buy and 2 Hold.
• Quarterly results beat expectations: EPS $0.45 vs. $0.34 estimate and revenue $1.19B (up 14.7% year-over-year), which likely helped lift the stock.

New Oriental Education & Technology Group, Inc. (NYSE:EDU - Get Free Report)'s share price gapped up before the market opened on Wednesday . The stock had previously closed at $54.66, but opened at $56.99. New Oriental Education & Technology Group shares last traded at $57.8610, with a volume of 169,654 shares changing hands.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on EDU. Zacks Research raised New Oriental Education & Technology Group from a "hold" rating to a "strong-buy" rating in a research report on Monday, February 2nd. China Renaissance raised shares of New Oriental Education & Technology Group from a "hold" rating to a "strong-buy" rating in a research report on Thursday, January 29th. Wall Street Zen upgraded shares of New Oriental Education & Technology Group from a "hold" rating to a "buy" rating in a research note on Saturday, January 31st. New Street Research set a $68.00 price objective on shares of New Oriental Education & Technology Group in a report on Wednesday, January 28th. Finally, HSBC upgraded shares of New Oriental Education & Technology Group from a "hold" rating to a "buy" rating in a research report on Wednesday, January 28th. Two investment analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, New Oriental Education & Technology Group has a consensus rating of "Buy" and an average target price of $65.84.

New Oriental Education & Technology Group Stock Performance

The company has a market capitalization of $9.07 billion, a P/E ratio of 24.37, a PEG ratio of 0.93 and a beta of 0.28. The stock has a fifty day moving average of $57.41 and a 200 day moving average of $55.27.

New Oriental Education & Technology Group (NYSE:EDU - Get Free Report) last released its quarterly earnings results on Wednesday, January 28th. The company reported $0.45 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.34 by $0.11. New Oriental Education & Technology Group had a return on equity of 11.19% and a net margin of 7.40%.The business had revenue of $1.19 billion during the quarter, compared to analyst estimates of $1.16 billion. During the same quarter in the previous year, the company posted $0.22 earnings per share. New Oriental Education & Technology Group's revenue for the quarter was up 14.7% on a year-over-year basis. Research analysts anticipate that New Oriental Education & Technology Group, Inc. will post 2.75 EPS for the current fiscal year.

Institutional Investors Weigh In On New Oriental Education & Technology Group

Several hedge funds and other institutional investors have recently added to or reduced their stakes in EDU. Hsbc Holdings PLC lifted its holdings in New Oriental Education & Technology Group by 40.3% during the fourth quarter. Hsbc Holdings PLC now owns 26,433 shares of the company's stock valued at $1,449,000 after purchasing an additional 7,593 shares in the last quarter. Invesco Ltd. increased its stake in shares of New Oriental Education & Technology Group by 5,697.3% in the fourth 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 in the last quarter. Vident Advisory LLC raised its position in shares of New Oriental Education & Technology Group by 8.2% during the 4th quarter. Vident Advisory LLC now owns 5,939 shares of the company's stock valued at $327,000 after purchasing an additional 449 shares during the period. XTX Topco Ltd raised its position in shares of New Oriental Education & Technology Group by 156.3% during the 4th quarter. XTX Topco Ltd now owns 13,664 shares of the company's stock valued at $752,000 after purchasing an additional 8,332 shares during the period. Finally, Quadrature Capital Ltd purchased a new position in shares of New Oriental Education & Technology Group during the 4th quarter valued at $1,313,000.

New Oriental Education & Technology Group Company Profile

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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