Gaotu Techedu (NYSE:GOTU) Trading 9.2% Higher – Here’s Why

Gaotu Techedu Inc. (NYSE:GOTU) shares traded up 9.2% on Tuesday . The company traded as high as $2.0950 and last traded at $2.0850. Approximately 309,793 shares changed hands during mid-day trading, a decline of 26% from the average session volume of 421,171 shares. The stock had previously closed at $1.91.

Wall Street Analyst Weigh In

Separately, Weiss Ratings downgraded shares of 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, According to data from MarketBeat.com, the stock has an average rating of “Sell”.

Gaotu Techedu Stock Up 1.3%

The company has a market cap of $525.03 million, a PE ratio of -10.42 and a beta of 0.73. The company has a debt-to-equity ratio of 0.15, a current ratio of 0.86 and a quick ratio of 0.85. The company has a fifty day moving average price of $1.77 and a 200 day moving average price of $1.86.

Gaotu Techedu (NYSE:GOTU) last announced its earnings results 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 return on equity of 26.89% and a negative net margin of 5.00%.

Insider Buying and Selling at Gaotu Techedu

In related news, CEO Xiangdong Chen purchased 167,051 shares of Gaotu Techedu stock in a transaction that occurred on Thursday, June 18th. The shares were acquired at an average cost of $2.50 per share, for a total transaction of $417,627.50. Following the transaction, the chief executive officer directly owned 8,014,529 shares in the company, valued at $20,036,322.50. The trade was a 2.13% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Over the last three months, insiders bought 500,000 shares of company stock valued at $1,175,032. Insiders own 44.90% of the company’s stock.

Hedge Funds Weigh In On Gaotu Techedu

Several hedge funds have recently made changes to their positions in GOTU. SmartHarvest Portfolios LLC bought a new position in Gaotu Techedu in the 1st quarter worth $29,000. Headlands Technologies LLC purchased a new position in shares of Gaotu Techedu during the second quarter valued at about $35,000. HRT Financial LP raised its stake in Gaotu Techedu by 86.6% in the fourth quarter. HRT Financial LP now owns 22,020 shares of the company’s stock worth $51,000 after buying an additional 10,221 shares in the last quarter. Public Employees Retirement System of Ohio bought a new position in Gaotu Techedu in the second quarter worth about $53,000. Finally, Walleye Trading LLC lifted its holdings in 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 buying an additional 11,383 shares during the period. 48.42% of the stock is owned by hedge funds and other institutional investors.

About Gaotu Techedu

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.