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

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

Analysts Set New Price Targets

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

Gaotu Techedu Stock Down 0.7%

The company has a 50 day moving average of $2.39 and a two-hundred day moving average of $3.00. The firm has a market cap of $565.88 million, a P/E ratio of -10.64 and a beta of 0.25.

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

Institutional Investors Weigh In On Gaotu Techedu

Large investors have recently modified their holdings of the stock. JPMorgan Chase & Co. acquired a new stake in shares of Gaotu Techedu during the third quarter worth $474,000. Public Employees Retirement System of Ohio boosted its position in shares of Gaotu Techedu by 27.1% in the 3rd quarter. Public Employees Retirement System of Ohio now owns 255,437 shares of the company’s stock valued at $833,000 after purchasing an additional 54,453 shares during the period. National Bank of Canada FI purchased a new position in Gaotu Techedu in the 3rd quarter worth about $293,000. Centiva Capital LP acquired a new stake in Gaotu Techedu during the 3rd quarter worth about $133,000. Finally, Bank of America Corp DE lifted its stake in Gaotu Techedu by 10.5% during the third quarter. Bank of America Corp DE now owns 164,737 shares of the company’s stock valued at $537,000 after buying an additional 15,651 shares in the last quarter. 48.42% of the stock is owned by 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.