Gaotu Techedu (NYSE:GOTU) Shares Climb 6% - Here's Why

Key Points

• Gaotu Techedu shares rose about 6.8% to roughly $2.56 during Thursday trading, with approximately 399,190 shares changing hands.
• The company’s latest quarter showed mixed results: revenue of $245.82 million exceeded expectations, but adjusted EPS came in at a loss of $0.09, missing the $0.01-loss consensus estimate.
• Analyst sentiment remains negative, with Weiss Ratings downgrading the stock and the sole tracked analyst maintaining a “Sell” rating. Institutional investors own approximately 48.42% of the company.

Shares of Gaotu Techedu Inc. (NYSE:GOTU - Get Free Report) were up 6% on Thursday. The stock traded as high as $2.54 and last traded at $2.5550. Approximately 399,190 shares changed hands during mid-day trading, a decline of 8% from the average daily volume of 434,914 shares. The stock had previously closed at $2.41.

Wall Street Analyst Weigh In

Separately, Weiss Ratings downgraded shares of Gaotu Techedu from a "sell (d-)" rating to a "sell (e+)" rating in a report on Thursday, July 23rd. One equities research analyst has rated the stock with a Sell rating, According to data from MarketBeat, the stock currently has a consensus rating of "Sell".

Gaotu Techedu Stock Up 6.8%

The business has a 50-day moving average price of $1.96 and a 200 day moving average price of $1.87. The company has a current ratio of 0.86, a quick ratio of 0.85 and a debt-to-equity ratio of 0.15. The stock has a market capitalization of $617.61 million, a P/E ratio of -12.26 and a beta of 0.73.

Gaotu Techedu (NYSE:GOTU - Get Free Report) last released its quarterly earnings results on Thursday, August 27th. The company reported ($0.09) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.08). Gaotu Techedu had a negative net margin of 5.00% and a negative return on equity of 26.89%. The business had revenue of $245.82 million for the quarter, compared to analysts' expectations of $238.39 million.

Institutional Investors Weigh In On Gaotu Techedu

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Headlands Technologies LLC purchased a new position in shares of Gaotu Techedu in the 2nd quarter worth approximately $35,000. Public Employees Retirement System of Ohio purchased a new position in Gaotu Techedu during the second quarter worth $53,000. Renaissance Technologies LLC increased its position in Gaotu Techedu by 2.2% during the first quarter. Renaissance Technologies LLC now owns 2,330,640 shares of the company's stock valued at $4,568,000 after acquiring an additional 50,362 shares during the last quarter. Hsbc Holdings PLC increased its position in Gaotu Techedu by 27.7% during the first quarter. Hsbc Holdings PLC now owns 161,501 shares of the company's stock valued at $319,000 after acquiring an additional 35,044 shares during the last quarter. Finally, SmartHarvest Portfolios LLC purchased a new stake in shares of Gaotu Techedu in the first quarter valued at $29,000. 48.42% of the stock is currently owned by hedge funds and other institutional investors.

About Gaotu Techedu

Gaotu Techedu Inc is a China-based education technology company that provides learning services and products through online and offline channels. The company offers educational content, tutoring programs, and technology-enabled learning tools designed to support students and adult learners.

Its offerings have included courses for primary and secondary school students, foreign-language learning, professional and vocational development, and personal-interest education. Gaotu also develops educational materials and intelligent learning products intended to complement its course services.

Founded in 2014 as GSX Techedu Inc, the company later adopted the name Gaotu Techedu Inc and trades in the United States under the symbol GOTU.

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