Gaotu Techedu (NYSE:GOTU) Issues Earnings Results

Gaotu Techedu (NYSE:GOTU) posted its earnings results on Thursday. The company reported ($0.05) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.01) by ($0.04), FiscalAI reports. Gaotu Techedu had a negative net margin of 6.42% and a negative return on equity of 29.69%. The company had revenue of $245.82 million during the quarter, compared to the consensus estimate of $238.46 million.

Gaotu Techedu Stock Performance

Shares of GOTU stock opened at $1.73 on Thursday. Gaotu Techedu has a 12-month low of $1.40 and a 12-month high of $4.12. The company has a debt-to-equity ratio of 0.10, a current ratio of 0.91 and a quick ratio of 0.89. The firm has a market capitalization of $413.74 million, a price-to-earnings ratio of -7.19 and a beta of 0.70. The business has a 50 day simple moving average of $1.74 and a 200 day simple moving average of $1.87.

Analyst Ratings Changes

Separately, Weiss Ratings cut 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.com, the stock currently has a consensus rating of “Sell”.

Insiders Place Their Bets

In other Gaotu Techedu news, CEO Xiangdong Chen purchased 167,051 shares of Gaotu Techedu stock in a transaction on Thursday, June 18th. The stock was bought at an average price of $2.50 per share, for a total transaction of $417,627.50. Following the transaction, the chief executive officer owned 8,014,529 shares of the company’s stock, valued at $20,036,322.50. The trade was a 2.13% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Over the last 90 days, insiders acquired 500,000 shares of company stock worth $1,175,032. 44.90% of the stock is owned by insiders.

Institutional Investors Weigh In On Gaotu Techedu

Several institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. increased its stake in Gaotu Techedu by 1.2% during the 3rd quarter. Vanguard Group Inc. now owns 5,192,148 shares of the company’s stock valued at $16,926,000 after buying an additional 63,891 shares during the period. Millennium Management LLC increased its stake in shares of Gaotu Techedu by 602.0% during the first quarter. Millennium Management LLC now owns 1,996,144 shares of the company’s stock valued at $6,487,000 after acquiring an additional 1,711,774 shares during the period. Arrowstreet Capital Limited Partnership raised its holdings in Gaotu Techedu by 157.3% during the second quarter. Arrowstreet Capital Limited Partnership now owns 1,568,492 shares of the company’s stock worth $5,662,000 after purchasing an additional 958,782 shares in the last quarter. Marshall Wace LLP lifted its position in Gaotu Techedu by 3,628.9% in the second quarter. Marshall Wace LLP now owns 788,541 shares of the company’s stock worth $2,847,000 after purchasing an additional 767,394 shares during the period. Finally, State Street Corp boosted its stake in Gaotu Techedu by 6.4% during the 4th quarter. State Street Corp now owns 418,306 shares of the company’s stock valued at $970,000 after purchasing an additional 25,074 shares in the last quarter. Institutional investors and hedge funds own 48.42% of the company’s stock.

About Gaotu Techedu

Gaotu Techedu Inc (NYSE:GOTU), formerly known as GSX Techedu, is a Beijing-based provider of online education services in China. Since its founding in 2014, the company has built a technology-driven platform that delivers live, interactive tutoring sessions to students primarily in the K-12 segment. Gaotu Techedu’s rebranding in 2021 underscored its commitment to leveraging cutting-edge digital tools to expand access to quality instruction across core academic subjects.

The company’s main offerings include small-group and one-on-one classes in mathematics, Chinese, English, physics and chemistry, as well as targeted test preparation for high-stakes national and local examinations.