Gaotu Techedu (NYSE:GOTU) Reaches New 52-Week Low – Should You Sell?

Gaotu Techedu Inc. (NYSE:GOTU) hit a new 52-week low on Thursday . The company traded as low as $1.93 and last traded at $1.9950, with a volume of 121787 shares. The stock had previously closed at $1.99.

Analyst Ratings Changes

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

Gaotu Techedu Stock Performance

The stock’s 50-day simple moving average is $2.21 and its 200-day simple moving average is $2.65. The stock has a market cap of $502.58 million, a price-to-earnings ratio of -10.45 and a beta of 0.46. The company has a current ratio of 0.94, a quick ratio of 0.92 and a debt-to-equity ratio of 0.03.

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

Institutional Trading of Gaotu Techedu

A number of institutional investors have recently modified their holdings of GOTU. Vanguard Group Inc. grew its holdings in shares of Gaotu Techedu by 1.2% during the 3rd quarter. Vanguard Group Inc. now owns 5,192,148 shares of the company’s stock worth $16,926,000 after purchasing an additional 63,891 shares in the last quarter. Millennium Management LLC lifted 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 worth $6,487,000 after purchasing an additional 1,711,774 shares during the period. Arrowstreet Capital Limited Partnership lifted its position in Gaotu Techedu by 157.3% during the second quarter. Arrowstreet Capital Limited Partnership now owns 1,568,492 shares of the company’s stock worth $5,662,000 after purchasing an additional 958,782 shares during the period. 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 buying an additional 767,394 shares in the last quarter. Finally, Norges Bank bought a new position in Gaotu Techedu in the 2nd quarter valued at about $1,769,000. 48.42% of the stock is currently owned by 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.