Gaotu Techedu (NYSE:GOTU) Shares Down 3.3% – Should You Sell?

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

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings downgraded shares of Gaotu Techedu from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Thursday. One investment analyst has rated the stock with a Sell rating, According to MarketBeat, the stock has a consensus rating of “Sell”.

Gaotu Techedu Stock Down 2.2%

The firm has a 50-day simple moving average of $1.71 and a 200 day simple moving average of $1.97. The stock has a market capitalization of $375.36 million, a P/E ratio of -6.52 and a beta of 0.63. The company has a debt-to-equity ratio of 0.10, a current ratio of 0.91 and a quick ratio of 0.89.

Gaotu Techedu (NYSE:GOTU) last released its quarterly 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 company had revenue of $245.04 million for the quarter, compared to analysts’ expectations of $233.35 million.

Insider Transactions at Gaotu Techedu

In other Gaotu Techedu news, CEO Xiangdong Chen purchased 200,000 shares of the company’s stock in a transaction dated Thursday, June 11th. The stock was purchased at an average price of $2.23 per share, with a total value of $446,000.00. Following the completion of the purchase, the chief executive officer 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 ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. In the last ninety days, insiders have purchased 500,000 shares of company stock valued at $1,175,032. Corporate insiders own 44.90% of the company’s stock.

Institutional Investors Weigh In On Gaotu Techedu

Large investors have recently modified their holdings of the company. Millennium Management LLC boosted 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 during the last quarter. American Century Companies Inc. boosted its position in shares of Gaotu Techedu by 57.0% during the 2nd quarter. American Century Companies Inc. now owns 61,076 shares of the company’s stock valued at $220,000 after purchasing an additional 22,164 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its position in shares of Gaotu Techedu by 157.3% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 1,568,492 shares of the company’s stock valued at $5,662,000 after purchasing an additional 958,782 shares in the last quarter. Walleye Trading LLC grew its stake in Gaotu Techedu by 110.1% during the second 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. Finally, Marshall Wace LLP grew its stake in Gaotu Techedu by 3,628.9% during 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. 48.42% of the stock is currently owned by institutional investors and hedge funds.

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.