Gaotu Techedu (NYSE:GOTU) Rating Lowered to Sell at Wall Street Zen

Gaotu Techedu (NYSE:GOTU) was downgraded by analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a research note issued to investors on Saturday.

Separately, Weiss Ratings reiterated a “sell (e+)” rating on shares of Gaotu Techedu in a research note on Monday, December 8th. One analyst has rated the stock with a Sell rating, Based on data from MarketBeat, Gaotu Techedu presently has a consensus rating of “Sell”.

Gaotu Techedu Stock Down 0.2%

NYSE:GOTU opened at $2.39 on Friday. The company has a market cap of $603.86 million, a P/E ratio of -11.36 and a beta of 0.20. Gaotu Techedu has a twelve month low of $1.87 and a twelve month high of $4.56. The business has a 50 day moving average price of $2.76 and a two-hundred day moving average price of $3.36.

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

Hedge Funds Weigh In On Gaotu Techedu

A number of institutional investors have recently added to or reduced their stakes in the company. Millennium Management LLC lifted its stake in Gaotu Techedu by 602.0% in 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. Acadian Asset Management LLC acquired a new position in shares of Gaotu Techedu during the 2nd quarter worth about $3,865,000. Arrowstreet Capital Limited Partnership raised its holdings in shares of Gaotu Techedu by 157.3% in 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 during the period. Marshall Wace LLP lifted its stake in Gaotu Techedu by 3,628.9% in the 2nd quarter. Marshall Wace LLP now owns 788,541 shares of the company’s stock valued at $2,847,000 after purchasing an additional 767,394 shares during the last quarter. Finally, Norges Bank bought a new position in Gaotu Techedu during the second quarter worth about $1,769,000. 48.42% of the stock is currently owned by institutional investors and hedge funds.

Gaotu Techedu Company Profile

Gaotu Techedu Inc, a technology-driven education company, provides learning services, educational content, and digitalized learning products in the People's Republic of China. The company offers traditional online academic subject tutoring services that covers academic subjects, such as mathematics, English, Chinese, physics, chemistry, biology, history, geography, and political science for students; non-academic tutoring services; personal interest courses comprising chess learning, family relationships and education, humanities, and science courses; and professional courses primarily for college students and adults preparing for professional qualification exams, such as teacher's qualification, Chartered Financial Analyst designation, Certified Public Accountant designation, and other exams.