Gaotu Techedu (NYSE:GOTU) Stock Jumps 6% – Here’s Why

Gaotu Techedu Inc. (NYSE:GOTU) was up 6% during mid-day trading on Thursday. The stock traded as high as $2.54 and last traded at $2.5550. 399,190 shares were traded during mid-day trading, a decline of 8% from the average daily volume of 434,914 shares. The stock had previously closed at $2.41.

Wall Street Analyst Weigh In

Separately, Weiss Ratings downgraded Gaotu Techedu from a “sell (d-)” rating to a “sell (e+)” rating in a report on Thursday, July 23rd. One analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, the stock presently has a consensus rating of “Sell”.

Gaotu Techedu Stock Up 6.8%

The company has a market cap of $617.61 million, a PE ratio of -12.26 and a beta of 0.73. The company’s 50 day moving average is $1.96 and its 200 day moving average is $1.87. The company has a current ratio of 0.86, a quick ratio of 0.85 and a debt-to-equity ratio of 0.15.

Gaotu Techedu (NYSE:GOTU) last released its quarterly earnings data on Thursday, August 27th. The company reported ($0.09) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.01) by ($0.08). The company had revenue of $245.82 million during the quarter, compared to analysts’ expectations of $238.39 million. Gaotu Techedu had a negative net margin of 5.00% and a negative return on equity of 26.89%.

Institutional Investors Weigh In On Gaotu Techedu

Hedge funds have recently modified their holdings of the business. Headlands Technologies LLC acquired a new position in shares of Gaotu Techedu in the 2nd quarter valued at $35,000. Public Employees Retirement System of Ohio acquired a new stake in Gaotu Techedu during the 2nd quarter worth about $53,000. Renaissance Technologies LLC grew its stake in Gaotu Techedu by 2.2% during the 1st quarter. Renaissance Technologies LLC now owns 2,330,640 shares of the company’s stock valued at $4,568,000 after purchasing an additional 50,362 shares during the last quarter. Hsbc Holdings PLC grew its stake in Gaotu Techedu by 27.7% during the 1st quarter. Hsbc Holdings PLC now owns 161,501 shares of the company’s stock valued at $319,000 after purchasing an additional 35,044 shares during the last quarter. Finally, SmartHarvest Portfolios LLC acquired a new position in shares of Gaotu Techedu in the first quarter valued at about $29,000. Hedge funds and other institutional investors own 48.42% of the company’s stock.

Gaotu Techedu Company Profile

Gaotu Techedu Inc is a China-based education technology company that provides learning services and products through online and offline channels. The company offers educational content, tutoring programs, and technology-enabled learning tools designed to support students and adult learners.

Its offerings have included courses for primary and secondary school students, foreign-language learning, professional and vocational development, and personal-interest education. Gaotu also develops educational materials and intelligent learning products intended to complement its course services.

Founded in 2014 as GSX Techedu Inc, the company later adopted the name Gaotu Techedu Inc and trades in the United States under the symbol GOTU.