Gaotu Techedu (NYSE:GOTU) Sets New 12-Month Low – Here’s What Happened

Gaotu Techedu Inc. (NYSE:GOTU) hit a new 52-week low during trading on Wednesday . The company traded as low as $1.93 and last traded at $1.9550, with a volume of 878341 shares trading hands. The stock had previously closed at $1.99.

Analysts Set New Price Targets

A number of brokerages have issued reports on GOTU. Wall Street Zen upgraded shares of Gaotu Techedu from a “sell” rating to a “hold” rating in a research report on Saturday, December 27th. Weiss Ratings reissued a “sell (e+)” rating on shares of Gaotu Techedu in a research note on Monday, December 29th. One analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, Gaotu Techedu currently has a consensus rating of “Sell”.

Gaotu Techedu Stock Performance

The stock has a market cap of $469.66 million, a price-to-earnings ratio of -9.76 and a beta of 0.46. The company has a debt-to-equity ratio of 0.03, a current ratio of 0.94 and a quick ratio of 0.92. The stock’s 50-day moving average is $2.14 and its 200-day moving average is $2.59.

Gaotu Techedu (NYSE:GOTU) last issued its quarterly earnings results on Thursday, March 5th. The company reported ($0.05) earnings per share for the quarter, beating the consensus estimate of ($0.08) by $0.03. Gaotu Techedu had a negative return on equity of 21.09% and a negative net margin of 5.31%.The company had revenue of $240.88 million during the quarter, compared to the consensus estimate of $232.47 million.

Hedge Funds Weigh In On Gaotu Techedu

Several large investors have recently added to or reduced their stakes in GOTU. Quadrature Capital Ltd acquired a new stake in Gaotu Techedu in the 2nd quarter worth about $42,000. HRT Financial LP lifted its holdings in shares of Gaotu Techedu by 86.6% during the 4th quarter. HRT Financial LP now owns 22,020 shares of the company’s stock worth $51,000 after acquiring an additional 10,221 shares during the period. Walleye Trading LLC boosted its position in shares of Gaotu Techedu by 110.1% in the second quarter. Walleye Trading LLC now owns 21,722 shares of the company’s stock worth $78,000 after acquiring an additional 11,383 shares during the last quarter. Federation des caisses Desjardins du Quebec acquired a new stake in shares of Gaotu Techedu in the fourth quarter worth approximately $104,000. Finally, Centiva Capital LP purchased a new stake in Gaotu Techedu in the third quarter valued at approximately $133,000. 48.42% of the stock is currently owned by hedge funds and other institutional investors.

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.