TAL Education Group [NYSE: TAL] gained 0.07% or 0.05 points to close at $73.85 with a heavy trading volume of 2477245 shares. The company report on November 13, 2020 that TAL Announces Investment by a Global Growth Investment Firm.
TAL Education Group (NYSE: TAL) (“TAL” or the “Company”), a leading K-12 after-school tutoring services provider in China, announced that a global growth investment firm has agreed to purchase a total of approximately US$1.5 billion of newly issued Class A common shares of the Company. Following the transaction, the investor will hold, taking into account its existing holding, approximately 8.35% of the Company’s outstanding shares.
The transaction is subject to customary closing conditions and the closing is expected to take place in November 2020. The investor has agreed not to sell, transfer or dispose of any shares acquired in the transaction for six months after the closing.
It opened the trading session at $73.60, the shares rose to $74.19 and dropped to $72.98, the range by which the price of stock traded the whole day. The daily chart for TAL points out that the company has recorded 30.80% gains over the past six months. However, it is still -71.31% lower than its most recent low trading price.
If we look at the average trading volume of 2.67M shares, TAL reached to a volume of 2477245 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about TAL Education Group [TAL]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for TAL shares is $82.86 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on TAL stock is a recommendation set at 1.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
The Benchmark Company have made an estimate for TAL Education Group shares, keeping their opinion on the stock as Buy, with their previous recommendation back on October 23, 2020. The new note on the price target was released on October 23, 2020, representing the official price target for TAL Education Group stock. Previously, the target price had yet another raise to $80, while CLSA analysts kept a Outperform rating on TAL stock.
The Average True Range (ATR) for TAL Education Group is set at 2.84, with the Price to Sales ratio for TAL stock in the period of the last 12 months amounting to 8.12. The Price to Book ratio for the last quarter was 17.09, with the Price to Cash per share for the same quarter was set at 7.26.
Trading performance analysis for TAL stock
TAL Education Group [TAL] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 0.16. With this latest performance, TAL shares gained by 10.95% in over the last four-week period, additionally plugging by 30.80% over the last 6 months – not to mention a rise of 68.11% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for TAL stock in for the last two-week period is set at 54.43, with the RSI for the last a single of trading hit 55.90, and the three-weeks RSI is set at 51.69 for TAL Education Group [TAL]. The present Moving Average for the last 50 days of trading for this stock 73.73, while it was recorded at 74.04 for the last single week of trading, and 65.89 for the last 200 days.
TAL Education Group [TAL]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and TAL Education Group [TAL] shares currently have an operating margin of +4.80 and a Gross Margin at +55.14. TAL Education Group’s Net Margin is presently recorded at -3.37.
Return on Total Capital for TAL is now 4.61, given the latest momentum, and Return on Invested Capital for the company is -3.55. Return on Equity for this stock declined to -4.41, with Return on Assets sitting at -2.37. When it comes to the capital structure of this company, TAL Education Group [TAL] has a Total Debt to Total Equity ratio set at 60.29. Additionally, TAL Total Debt to Total Capital is recorded at 37.61, with Total Debt to Total Assets ending up at 27.23. Long-Term Debt to Equity for the company is recorded at 48.17, with the Long-Term Debt to Total Capital now at 30.05.
Reflecting on the efficiency of the workforce at the company, TAL Education Group [TAL] managed to generate an average of -$2,434 per employee. Receivables Turnover for the company is 26.23 with a Total Asset Turnover recorded at a value of 0.70.TAL Education Group’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 1.20.
TAL Education Group [TAL]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, TAL Education Group posted 0.05/share EPS, while the average EPS was predicted by analysts to be reported at 0.09/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -44.40%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for TAL.
An analysis of insider ownership at TAL Education Group [TAL]
There are presently around $25,626 million, or 99.80% of TAL stock, in the hands of institutional investors. The top three institutional holders of TAL stocks are: UBS ASSET MANAGEMENT AMERICAS INC with ownership of 54,722,594, which is approximately 5.093% of the company’s market cap and around 83.90% of the total institutional ownership; MORGAN STANLEY, holding 48,272,212 shares of the stock with an approximate value of $3.56 billion in TAL stocks shares; and BAILLIE GIFFORD & CO, currently with $3.09 billion in TAL stock with ownership of nearly -8.235% of the company’s market capitalization.
Positions in TAL Education Group stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 157 institutional holders increased their position in TAL Education Group [NYSE:TAL] by around 29,424,411 shares. Additionally, 175 investors decreased positions by around 27,600,573 shares, while 48 investors held positions by with 289,975,517 shares. The mentioned changes placed institutional holdings at 347,000,501 shares, according to the latest SEC report filing. TAL stock had 40 new institutional investments in for a total of 1,889,977 shares, while 36 institutional investors sold positions of 4,044,036 shares during the same period.