TAL Education Group (NYSE:TAL) Shares Down 8.6% - Here's Why

Key Points

• TAL Education Group shares fell 8.6% in mid-day trading to about $10.59, with trading volume substantially below its average.
• Despite the decline, analysts remain broadly positive, with the stock carrying a consensus “Buy” rating and a $14.80 average price target.
• The company’s latest quarterly results beat expectations, reporting $0.75 in EPS versus $0.29 expected and revenue of $758.38 million versus the $719.40 million consensus estimate.

Shares of TAL Education Group (NYSE:TAL - Get Free Report) fell 8.6% during mid-day trading on Wednesday. The company traded as low as $10.71 and last traded at $10.5890. 976,933 shares changed hands during mid-day trading, a decline of 76% from the average daily volume of 4,070,905 shares. The stock had previously closed at $11.58.

Analyst Ratings Changes

A number of research firms have commented on TAL. Jefferies Financial Group started coverage on TAL Education Group in a report on Friday, July 31st. They set a "hold" rating on the stock. Wall Street Zen raised TAL Education Group from a "hold" rating to a "buy" rating in a research note on Saturday. Weiss Ratings raised TAL Education Group from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, October 8th. Zacks Research upgraded TAL Education Group from a "hold" rating to a "strong-buy" rating in a research report on Thursday, August 6th. Finally, New Street Research set a $13.60 target price on TAL Education Group in a research report on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Buy" and a consensus target price of $14.80.

TAL Education Group Stock Down 8.9%

The company has a fifty day moving average price of $11.98 and a 200-day moving average price of $11.08. The stock has a market capitalization of $5.84 billion, a P/E ratio of 6.55, a PEG ratio of 0.69 and a beta of 0.09.

TAL Education Group (NYSE:TAL - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The company reported $0.75 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.29 by $0.46. The business had revenue of $758.38 million for the quarter, compared to the consensus estimate of $719.40 million. TAL Education Group had a return on equity of 24.55% and a net margin of 28.43%. As a group, research analysts expect that TAL Education Group will post 1.26 earnings per share for the current fiscal year.

Insider Transactions at TAL Education Group

In other TAL Education Group news, insider Alex Peng sold 30,000 shares of the stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $12.28, for a total transaction of $368,400.00. Following the completion of the transaction, the insider owned 15,144 shares in the company, valued at $185,968.32. This trade represents a 66.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 1.81% of the stock is currently owned by insiders.

Institutional Trading of TAL Education Group

A number of large investors have recently made changes to their positions in the business. Farther Finance Advisors LLC lifted its holdings in shares of TAL Education Group by 53.9% in the 3rd quarter. Farther Finance Advisors LLC now owns 2,396 shares of the company's stock worth $29,000 after acquiring an additional 839 shares during the last quarter. Cassaday & Co Wealth Management LLC bought a new position in TAL Education Group during the 1st quarter valued at about $50,000. Fideuram Intesa Sanpaolo Private Banking S.P.A. bought a new position in TAL Education Group during the 1st quarter valued at about $109,000. Impact Investors Inc bought a new position in TAL Education Group during the 1st quarter valued at about $135,000. Finally, Private Advisor Group LLC bought a new position in TAL Education Group during the 1st quarter valued at about $137,000. 37.79% of the stock is currently owned by institutional investors.

About TAL Education Group

TAL Education Group is a Chinese education services provider that offers learning programs, educational content and related services for students. Its offerings have included tutoring and enrichment programs in subjects such as mathematics, science, Chinese and English, along with online learning tools, educational technology and other products designed to support students, parents and teachers.

The company was founded in 2003 as Xueersi and later adopted the name TAL Education Group. It historically operated a network of learning centers and online platforms serving students in China, with a focus on primary and secondary education.

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