GSX Techedu Inc. [GSX] Revenue clocked in at $903.10 million, up 3.46% YTD: What’s Next?

GSX Techedu Inc. [NYSE: GSX] price surged by 15.78 percent to reach at $7.29. The company report on December 7, 2020 that GSX Announces Private Placement Financing of US$ 870 Million.

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GSX Techedu Inc. (NYSE: GSX) (“GSX” or the “Company”), a leading online K-12 large-class after-school tutoring service provider in China, announced that certain investors have agreed to purchase through a private placement a total of US$ 870 million of newly issued Class A ordinary shares of the Company, representing approximately 6.2% of the Company’s total outstanding shares. The private placement is expected to be closed in December 2020.

It is expected that the share issuances will be exempted from registration under the Securities Act of 1933, as amended, (the “Securities Act”) pursuant to Section 4(a)(2) of the Securities Act regarding transactions not involving a public offering or Regulation S under the Securities Act.

A sum of 7589933 shares traded at recent session while its average daily volume was at 4.12M shares. GSX Techedu Inc. shares reached a high of $60.75 and dropped to a low of $45.61 until finishing in the latest session at $53.50.

The one-year GSX stock forecast points to a potential upside of 19.6. The average equity rating for GSX stock is currently 3.20, trading closer to a bullish pattern in the stock market.

Guru’s Opinion on GSX Techedu Inc. [GSX]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for GSX shares is $66.54 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on GSX stock is a recommendation set at 3.20. 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.

UBS have made an estimate for GSX Techedu Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on December 17, 2020. While these analysts kept the previous recommendation, Nomura dropped their target price from $40 to $38. The new note on the price target was released on October 22, 2020, representing the official price target for GSX Techedu Inc. stock. Previously, the target price had yet another raise to $71, while Credit Suisse analysts kept a Underperform rating on GSX stock.

The Average True Range (ATR) for GSX Techedu Inc. is set at 3.94, with the Price to Sales ratio for GSX stock in the period of the last 12 months amounting to 13.53. The Price to Book ratio for the last quarter was 127.38, with the Price to Cash per share for the same quarter was set at 1.07.

GSX Stock Performance Analysis:

GSX Techedu Inc. [GSX] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 15.23. With this latest performance, GSX shares dropped by -14.00% in over the last four-week period, additionally sinking by -30.18% over the last 6 months – not to mention a rise of 86.67% 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 GSX stock in for the last two-week period is set at 47.97, with the RSI for the last a single of trading hit 55.47, and the three-weeks RSI is set at 44.20 for GSX Techedu Inc. [GSX]. The present Moving Average for the last 50 days of trading for this stock 60.99, while it was recorded at 48.58 for the last single week of trading, and 66.46 for the last 200 days.

Insight into GSX Techedu Inc. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and GSX Techedu Inc. [GSX] shares currently have an operating margin of +10.20 and a Gross Margin at +74.66. GSX Techedu Inc.’s Net Margin is presently recorded at +10.72.

Return on Total Capital for GSX is now 24.37, given the latest momentum, and Return on Invested Capital for the company is 26.49. Return on Equity for this stock inclined to 29.85, with Return on Assets sitting at 12.22. When it comes to the capital structure of this company, GSX Techedu Inc. [GSX] has a Total Debt to Total Equity ratio set at 16.32. Additionally, GSX Total Debt to Total Capital is recorded at 14.03, with Total Debt to Total Assets ending up at 7.49. Long-Term Debt to Equity for the company is recorded at 12.47, with the Long-Term Debt to Total Capital now at 10.72.

Reflecting on the efficiency of the workforce at the company, GSX Techedu Inc. [GSX] managed to generate an average of $5,097 per employee. Receivables Turnover for the company is 41.98 with a Total Asset Turnover recorded at a value of 1.14.GSX Techedu Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.70 and a Current Ratio set at 0.70.

GSX Stock EPS

With the latest financial reports released by the company, GSX Techedu Inc. posted 0.11/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 surpassed the estimates by a Surprise Factor of 22.20%. 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 GSX. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for GSX Techedu Inc. go to 16.01%.

GSX Techedu Inc. [GSX] Insider Position Details

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Positions in GSX Techedu Inc. stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 90 institutional holders increased their position in GSX Techedu Inc. [NYSE:GSX] by around 28,779,030 shares. Additionally, 78 investors decreased positions by around 15,697,051 shares, while 9 investors held positions by with 37,494,000 shares. The mentioned changes placed institutional holdings at 81,970,081 shares, according to the latest SEC report filing. GSX stock had 43 new institutional investments in for a total of 4,492,260 shares, while 34 institutional investors sold positions of 5,370,539 shares during the same period.

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