Gaotu Techedu Inc. [GOTU] moved down -8.15: Why It’s Important

Gaotu Techedu Inc. [NYSE: GOTU] slipped around -1.17 points on Friday, while shares priced at $13.19 at the close of the session, down -8.15%. The company report on June 4, 2021 that Gaotu Techedu Inc. Announces Effectiveness of Name Change.

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Gaotu Techedu Inc. (“Gaotu” or the “Company”) (NYSE: GOTU), a leading online K-12 large-class after-school tutoring service provider in China, announced that it has changed its name from “GSX Techedu Inc.” to “Gaotu Techedu Inc.,” effective June 4, 2021. The American depositary shares of the Company, every three representing two Class A ordinary shares, par value US$0.0001 per share, will begin trading under the new corporate name on June 7, 2021.

About Gaotu Techedu Inc.

Gaotu Techedu Inc. stock is now -74.49% down from its year-to-date (YTD) trading value. GOTU Stock saw the intraday high of $13.815 and lowest of $12.90 per share. The company’s 52-week high price is 149.05, which means current price is +8.16% above from all time high which was touched on 01/27/21.

Compared to the average trading volume of 10.95M shares, GOTU reached a trading volume of 7823946 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Gaotu Techedu Inc. [GOTU]?

Citigroup have made an estimate for Gaotu Techedu Inc. shares, keeping their opinion on the stock as Sell, with their previous recommendation back on June 11, 2021. While these analysts kept the previous recommendation, Goldman dropped their target price from $60 to $20. The new note on the price target was released on June 02, 2021, representing the official price target for Gaotu Techedu Inc. stock.

The Average True Range (ATR) for Gaotu Techedu Inc. is set at 1.58, with the Price to Sales ratio for GOTU stock in the period of the last 12 months amounting to 3.06. The Price to Book ratio for the last quarter was 4.98, with the Price to Cash per share for the same quarter was set at 2.98.

How has GOTU stock performed recently?

Gaotu Techedu Inc. [GOTU] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -9.60. With this latest performance, GOTU shares dropped by -11.77% in over the last four-week period, additionally sinking by -74.49% over the last 6 months – not to mention a drop of -79.09% 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 GOTU stock in for the last two-week period is set at 36.19, with the RSI for the last a single of trading hit 35.89, and the three-weeks RSI is set at 35.74 for Gaotu Techedu Inc. [GOTU]. The present Moving Average for the last 50 days of trading for this stock 20.28, while it was recorded at 14.53 for the last single week of trading, and 60.37 for the last 200 days.

Gaotu Techedu Inc. [GOTU]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Gaotu Techedu Inc. [GOTU] shares currently have an operating margin of -24.63 and a Gross Margin at +75.26. Gaotu Techedu Inc.’s Net Margin is presently recorded at -19.55.

Return on Total Capital for GOTU is now -40.42, given the latest momentum, and Return on Invested Capital for the company is -32.92. Return on Equity for this stock declined to -36.70, with Return on Assets sitting at -19.03. When it comes to the capital structure of this company, Gaotu Techedu Inc. [GOTU] has a Total Debt to Total Equity ratio set at 13.91. Additionally, GOTU Total Debt to Total Capital is recorded at 12.21, with Total Debt to Total Assets ending up at 7.46. Long-Term Debt to Equity for the company is recorded at 11.24, with the Long-Term Debt to Total Capital now at 9.87.

Reflecting on the efficiency of the workforce at the company, Gaotu Techedu Inc. [GOTU] managed to generate an average of -$8,941 per employee. Receivables Turnover for the company is 100.11 with a Total Asset Turnover recorded at a value of 0.97.Gaotu Techedu Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.80 and a Current Ratio set at 1.80.

Earnings analysis for Gaotu Techedu Inc. [GOTU]

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 GOTU. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Gaotu Techedu Inc. go to 16.03%.

Insider trade positions for Gaotu Techedu Inc. [GOTU]

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Positions in Gaotu Techedu Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 106 institutional holders increased their position in Gaotu Techedu Inc. [NYSE:GOTU] by around 32,056,322 shares. Additionally, 76 investors decreased positions by around 46,608,061 shares, while 14 investors held positions by with 17,150,397 shares. The mentioned changes placed institutional holdings at 95,814,780 shares, according to the latest SEC report filing. GOTU stock had 53 new institutional investments in for a total of 12,592,282 shares, while 25 institutional investors sold positions of 7,889,893 shares during the same period.

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