Gaotu Techedu (NYSE:GOTU) Reaches New 12-Month Low – Here’s Why

Shares of Gaotu Techedu Inc. (NYSE:GOTU) reached a new 52-week low during mid-day trading on Tuesday . The company traded as low as $2.17 and last traded at $2.2250, with a volume of 594862 shares trading hands. The stock had previously closed at $2.25.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on GOTU shares. Wall Street Zen raised shares of Gaotu Techedu from a “sell” rating to a “hold” rating in a research note on Saturday, December 27th. Weiss Ratings restated a “sell (e+)” rating on shares of Gaotu Techedu in a report on Monday, December 29th. One investment analyst has rated the stock with a Sell rating, According to MarketBeat, the company presently has an average rating of “Sell”.

Gaotu Techedu Trading Down 0.7%

The firm has a market capitalization of $565.88 million, a PE ratio of -10.64 and a beta of 0.25. The firm’s fifty day moving average price is $2.39 and its 200 day moving average price is $3.00.

Gaotu Techedu (NYSE:GOTU) last announced its quarterly earnings data on Wednesday, November 26th. The company reported ($0.09) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.89) by $0.80. The business had revenue of $31.24 million during the quarter, compared to analyst estimates of $1.57 billion. Gaotu Techedu had a negative return on equity of 21.95% and a negative net margin of 6.45%.

Institutional Investors Weigh In On Gaotu Techedu

Several large investors have recently made changes to their positions in GOTU. Millennium Management LLC raised its position in 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 in the last quarter. Public Employees Retirement System of Ohio increased its stake in shares of Gaotu Techedu by 284.8% during the 2nd quarter. Public Employees Retirement System of Ohio now owns 200,984 shares of the company’s stock worth $726,000 after purchasing an additional 148,747 shares during the last quarter. Prime Capital Investment Advisors LLC acquired a new position in shares of Gaotu Techedu during the 2nd quarter worth $36,000. Cornerstone Investment Partners LLC bought a new position in shares of Gaotu Techedu during the 2nd quarter valued at $138,000. Finally, Connor Clark & Lunn Investment Management Ltd. lifted its stake in shares of Gaotu Techedu by 86.5% in the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 563,082 shares of the company’s stock valued at $2,033,000 after purchasing an additional 261,190 shares during the last quarter. 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.