Gaotu Techedu (NYSE:GOTU) Shares Down 3.3% – Here’s Why

Gaotu Techedu Inc. (NYSE:GOTU)’s stock price fell 3.3% during trading on Thursday . The company traded as low as $1.59 and last traded at $1.6050. Approximately 500,682 shares traded hands during mid-day trading, an increase of 68% from the average daily volume of 298,650 shares. The stock had previously closed at $1.66.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings upgraded shares of Gaotu Techedu from a “sell (e+)” rating to a “sell (d-)” rating in a report on Wednesday, July 8th. One analyst has rated the stock with a Sell rating, Based on data from MarketBeat, Gaotu Techedu currently has a consensus rating of “Sell”.

Gaotu Techedu Price Performance

The firm has a market capitalization of $384.96 million, a P/E ratio of -6.69 and a beta of 0.63. The company has a current ratio of 0.91, a quick ratio of 0.89 and a debt-to-equity ratio of 0.10. The firm has a 50 day moving average price of $1.72 and a 200-day moving average price of $1.97.

Gaotu Techedu (NYSE:GOTU) last released its earnings results on Tuesday, June 2nd. The company reported $0.02 earnings per share for the quarter. Gaotu Techedu had a negative return on equity of 29.69% and a negative net margin of 6.42%.The firm had revenue of $245.04 million for the quarter, compared to the consensus estimate of $233.35 million.

Insiders Place Their Bets

In other news, CEO Xiangdong Chen acquired 200,000 shares of the business’s stock in a transaction on Thursday, June 11th. The shares were acquired at an average price of $2.23 per share, for a total transaction of $446,000.00. Following the completion of the transaction, the chief executive officer directly owned 7,714,529 shares of the company’s stock, valued at approximately $17,203,399.67. The trade was a 2.66% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders have acquired a total of 500,000 shares of company stock worth $1,175,032 in the last quarter. Insiders own 44.90% of the company’s stock.

Institutional Investors Weigh In On Gaotu Techedu

Several institutional investors have recently made changes to their positions in GOTU. SmartHarvest Portfolios LLC bought a new position in Gaotu Techedu during the 1st quarter valued at about $29,000. Walleye Trading LLC raised its position in Gaotu Techedu by 110.1% in the 2nd quarter. Walleye Trading LLC now owns 21,722 shares of the company’s stock worth $78,000 after purchasing an additional 11,383 shares during the period. HRT Financial LP raised its position in Gaotu Techedu by 86.6% in the 4th quarter. HRT Financial LP now owns 22,020 shares of the company’s stock worth $51,000 after purchasing an additional 10,221 shares during the period. Quadrature Capital Ltd bought a new stake in Gaotu Techedu in the fourth quarter worth about $92,000. Finally, Centiva Capital LP bought a new stake in Gaotu Techedu in the third quarter worth about $133,000. Institutional investors own 48.42% of the company’s stock.

Gaotu Techedu Company Profile

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.