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

Key Points

• EDU shares fell sharply, opening at $53.04 versus the prior close of $57.99 and later trading near $50.79 on volume of about 1.84 million shares.
• Despite the decline, analysts maintain a “Moderate Buy” consensus, with an average price target of $63.17; ratings include one Strong Buy, three Buys, and two Holds.
• Insiders sold 72,170 shares worth approximately $4.1 million during the latest quarter, while institutional investors reported several stake increases.

New Oriental Education & Technology Group, Inc. (NYSE:EDU - Get Free Report)'s share price gapped down before the market opened on Wednesday. The stock had previously closed at $57.99, but opened at $53.04. New Oriental Education & Technology Group shares last traded at $50.79, with a volume of 1,841,565 shares changing hands.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on EDU shares. Wall Street Zen downgraded New Oriental Education & Technology Group from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. Weiss Ratings upgraded New Oriental Education & Technology Group from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday, October 13th. Finally, New Street Research set a $56.50 target price on shares of New Oriental Education & Technology Group in a research note on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $63.17.

New Oriental Education & Technology Group Price Performance

The firm has a market capitalization of $7.86 billion, a P/E ratio of 17.15, a price-to-earnings-growth ratio of 0.62 and a beta of 0.19. The business's 50-day moving average is $57.20 and its 200 day moving average is $54.39.

Insider Transactions at New Oriental Education & Technology Group

In other New Oriental Education & Technology Group news, Director Chenggang Zhou sold 56,948 shares of the business's stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $56.83, for a total transaction of $3,236,354.84. Following the completion of the transaction, the director owned 429,998 shares of the company's stock, valued at approximately $24,436,786.34. The trade was a 11.69% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Yue Zhuge sold 1,600 shares of the firm's stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $59.55, for a total transaction of $95,280.00. Following the completion of the transaction, the director owned 2,000 shares of the company's stock, valued at approximately $119,100. This trade represents a 44.44% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 72,170 shares of company stock worth $4,100,348. Company insiders own 15.50% of the company's stock.

Institutional Investors Weigh In On New Oriental Education & Technology Group

Large investors have recently added to or reduced their stakes in the company. EverSource Wealth Advisors LLC increased its stake in New Oriental Education & Technology Group by 106.9% in the 1st quarter. EverSource Wealth Advisors LLC now owns 540 shares of the company's stock worth $31,000 after acquiring an additional 279 shares during the last quarter. Arrowstreet Capital Limited Partnership bought a new position in New Oriental Education & Technology Group in the first quarter worth approximately $209,000. PNC Financial Services Group Inc. boosted its holdings in New Oriental Education & Technology Group by 14.8% in the 1st quarter. PNC Financial Services Group Inc. now owns 3,872 shares of the company's stock worth $219,000 after buying an additional 500 shares during the period. Assetmark Inc. increased its holdings in shares of New Oriental Education & Technology Group by 4,389.0% in the first quarter. Assetmark Inc. now owns 5,701 shares of the company's stock worth $323,000 after purchasing an additional 5,574 shares during the last quarter. Finally, KBC Group NV raised its stake in shares of New Oriental Education & Technology Group by 42.8% in the first quarter. KBC Group NV now owns 5,814 shares of the company's stock valued at $329,000 after acquiring an additional 1,743 shares during the period.

About New Oriental Education & Technology Group

New Oriental Education & Technology Group Inc NYSE: EDU is a China-based education services provider founded in 1993 by Michael Minhong Yu. The company operates schools, learning centers and online platforms that serve students, families and adult learners across China.

Its offerings have historically included test preparation for examinations such as the TOEFL, IELTS and other standardized tests; overseas study consulting; language training; educational services for primary and secondary students; adult and vocational education; and educational technology.

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