Gaotu Techedu (NYSE:GOTU) Stock Price Down 4.4% - Here's Why

Key Points

• Gaotu Techedu shares fell 4.4% to approximately $2.46 in mid-day trading, while trading volume dropped 84% below the average session volume.
• Investor sentiment remains negative after Weiss Ratings downgraded the stock, leaving Gaotu with a consensus “Sell” rating from the one analyst covering it.
• The company’s latest quarterly results missed earnings expectations, reporting a loss of $0.09 per share versus the estimated $0.01 loss, despite revenue exceeding forecasts.

Shares of Gaotu Techedu Inc. (NYSE:GOTU - Get Free Report) fell 4.4% during mid-day trading on Wednesday. The stock traded as low as $2.47 and last traded at $2.4580. 72,325 shares were traded during mid-day trading, a decline of 84% from the average session volume of 444,214 shares. The stock had previously closed at $2.57.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings lowered Gaotu Techedu from a "sell (d-)" rating to a "sell (e+)" rating in a report on Friday, October 16th. One research analyst has rated the stock with a Sell rating. Based on data from MarketBeat, the company currently has a consensus rating of "Sell".

Gaotu Techedu Stock Performance

The company has a market cap of $572.04 million, a PE ratio of -11.36 and a beta of 0.73. The company's 50 day moving average price is $2.29 and its 200-day moving average price is $2.03.

Gaotu Techedu (NYSE:GOTU - Get Free Report) last announced its quarterly earnings data on Thursday, August 27th. The company reported ($0.09) earnings per share for the quarter, missing the consensus estimate of ($0.01) by ($0.08). The business had revenue of $245.82 million during the quarter, compared to analyst estimates of $238.39 million.

Hedge Funds Weigh In On Gaotu Techedu

Large investors have recently modified their holdings of the company. Renaissance Technologies LLC boosted its position in shares of Gaotu Techedu by 2.2% during the 1st 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 lifted its holdings in shares of Gaotu Techedu by 27.7% in the 1st quarter. Hsbc Holdings PLC now owns 161,501 shares of the company's stock worth $319,000 after acquiring an additional 35,044 shares during the last quarter. Public Employees Retirement System of Ohio purchased a new stake in shares of Gaotu Techedu in the 2nd quarter valued at $53,000. Finally, Headlands Technologies LLC bought a new position in shares of Gaotu Techedu during the 2nd quarter valued at $35,000. 48.42% of the stock is currently owned by institutional investors.

Gaotu Techedu Company Profile

Gaotu Techedu Inc NYSE: GOTU is a China-based education technology company that provides online and offline learning services. The company offers courses and educational content through digital platforms, supported by teachers, instructional materials, and technology designed to serve students and adult learners.

Gaotu's offerings have included educational programs in areas such as language learning, professional and vocational development, examination preparation, and other academic subjects.

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