TAL Education Group (NYSE:TAL) Shares Gap Up on Strong Earnings

Key Points

• TAL Education Group shares jumped after the company reported quarterly EPS of $0.73, substantially exceeding the $0.16 consensus estimate. The stock opened at $12.47 versus its prior close of $10.89.
• Analysts remain cautious, with the company carrying a consensus “Hold” rating and a $16.00 target price; several firms recently downgraded their views.
• Institutional investors own 37.79% of TAL, while the company reported a 14.87% return on equity and a 17.64% net margin.

TAL Education Group (NYSE:TAL - Get Free Report) shares gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $10.89, but opened at $12.47. TAL Education Group shares last traded at $11.6460, with a volume of 3,016,242 shares traded.

The company reported $0.73 EPS for the quarter, topping the consensus estimate of $0.16 by $0.57. TAL Education Group had a return on equity of 14.87% and a net margin of 17.64%.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on TAL. Zacks Research downgraded TAL Education Group from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, June 23rd. Wall Street Zen cut shares of TAL Education Group from a "buy" rating to a "hold" rating in a research note on Sunday, July 12th. Finally, Weiss Ratings raised shares of TAL Education Group from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, June 11th. One research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $16.00.

Institutional Trading of TAL Education Group

A number of hedge funds and other institutional investors have recently bought and sold shares of TAL. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new position in shares of TAL Education Group during the 4th quarter valued at approximately $213,329,000. Vanguard Group Inc. raised its stake in TAL Education Group by 1.6% during the 4th quarter. Vanguard Group Inc. now owns 17,671,668 shares of the company's stock worth $192,798,000 after acquiring an additional 277,473 shares during the period. Bank of America Corp DE lifted its holdings in TAL Education Group by 14.3% during the second quarter. Bank of America Corp DE now owns 14,060,760 shares of the company's stock valued at $143,701,000 after purchasing an additional 1,759,945 shares in the last quarter. Tiger Pacific Capital LP boosted its position in shares of TAL Education Group by 6.2% in the second quarter. Tiger Pacific Capital LP now owns 9,233,398 shares of the company's stock worth $94,365,000 after purchasing an additional 541,919 shares during the period. Finally, State Street Corp increased its stake in shares of TAL Education Group by 3.5% in the fourth quarter. State Street Corp now owns 7,818,834 shares of the company's stock worth $85,303,000 after purchasing an additional 265,138 shares in the last quarter. Hedge funds and other institutional investors own 37.79% of the company's stock.

TAL Education Group Trading Up 6.6%

The business's 50 day moving average is $9.83 and its two-hundred day moving average is $10.75. The company has a market cap of $6.43 billion, a PE ratio of 12.49, a PEG ratio of 0.89 and a beta of 0.08.

About TAL Education Group

TAL Education Group is a leading provider of after-school tutoring services in China, specializing in K-12 academic instruction. The company offers a range of programs designed to help primary and secondary school students strengthen their core competencies in subjects such as mathematics, English, Chinese language and science. TAL leverages both in-person learning centers and digital platforms to deliver its curriculum, aiming to support student progress through interactive lessons and personalized study plans.

Founded in 2003 and headquartered in Beijing, TAL Education Group has grown into one of China's largest private education firms.

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