Market cap of New Oriental Education & Technology Group Inc. [EDU] reaches 10.97B – now what?

New Oriental Education & Technology Group Inc. [NYSE: EDU] closed the trading session at $2.93 on 07/23/21. The day’s price range saw the stock hit a low of $2.45, while the highest price level was $2.96. The company report on July 25, 2021 that New Oriental Education & Technology Group Inc. Provides Update on New Regulations.

BEIJING, July 25, 2021 /PRNewswire-Asia/ — New Oriental Education & Technology Group Inc. (“New Oriental” or the “Company”) (NYSE: EDU and SEHK: 9901), the largest provider of private educational services in China, announced that, on July 24, 2021, China’s official state media, including Xinhua News Agency and China Central Television, announced the Opinions on Further Alleviating the Burden of Homework and After-School Tutoring for Students in Compulsory Education (the “Opinion”), issued by the General Office of the CPC Central Committee and the General Office of the State Council. The Opinion contains high-level policy directives about requirements and restrictions related to after-school tutoring services, including (i) institutions providing after-school tutoring services on academic subjects in China’s compulsory education system, or Academic AST Institutions, need to be registered as non-profit, no approval will be granted to new Academic AST Institutions, and an approval mechanism will be adopted for online Academic AST Institutions; (ii) foreign ownership in Academic AST Institutions is prohibited, including through contractual arrangements, and companies with existing foreign ownership need to rectify the situation; (iii) listed companies are prohibited from raising capital to invest in businesses that teach academic subjects in compulsory education; (iv) Academic AST Institutions are prohibited from providing tutoring services on academic subjects in compulsory education during public holidays, weekends and school breaks; and (v) Academic AST Institutions must follow the fee standards to be established by relevant authorities. The Opinion also provides that institutions providing after-school tutoring services on academic subjects in high schools (which do not fall within China’s compulsory education system) shall take into consideration the Opinion when conducting activities.

The Company will follow the spirit of the Opinion and comply with relevant rules and regulations when providing educational services. The Company is considering appropriate compliance measures to be taken, and expects such measures to have material adverse impact on its after-school tutoring services related to academic subjects in China’s compulsory education system. The Company will proactively seek guidance from and cooperate with the government authorities in connection with its efforts to comply with the Opinion and any related rules and regulations.

The stocks have a year to date performance of -84.23 percent and weekly performance of -54.64 percent. The stock has been moved at -82.67 percent over the last six months. The stock has performed -63.87 percent around the most recent 30 days and changed -81.80 percent over the most recent 3-months.

If compared to the average trading volume of 35.12M shares, EDU reached to a volume of 803311338 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about New Oriental Education & Technology Group Inc. [EDU]:

JP Morgan have made an estimate for New Oriental Education & Technology Group Inc. shares, keeping their opinion on the stock as Underweight, with their previous recommendation back on July 23, 2021. While these analysts kept the previous recommendation, HSBC Securities raised their target price from $18.70 to $9.20. The new note on the price target was released on June 18, 2021, representing the official price target for New Oriental Education & Technology Group Inc. stock. Previously, the target price had yet another raise to $8.60, while Morgan Stanley analysts kept a Equal-Weight rating on EDU stock.

The Average True Range (ATR) for New Oriental Education & Technology Group Inc. is set at 0.82, with the Price to Sales ratio for EDU stock in the period of the last 12 months amounting to 2.84. The Price to Book ratio for the last quarter was 1.01, with the Price to Cash per share for the same quarter was set at 1.62.

EDU stock trade performance evaluation

New Oriental Education & Technology Group Inc. [EDU] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -54.64. With this latest performance, EDU shares dropped by -63.87% in over the last four-week period, additionally sinking by -82.67% over the last 6 months – not to mention a drop of -78.76% 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 EDU stock in for the last two-week period is set at 21.29, with the RSI for the last a single of trading hit 16.84, and the three-weeks RSI is set at 24.67 for New Oriental Education & Technology Group Inc. [EDU]. The present Moving Average for the last 50 days of trading for this stock 8.64, while it was recorded at 5.57 for the last single week of trading, and 14.75 for the last 200 days.

New Oriental Education & Technology Group Inc. [EDU]: An insightful look at the core fundamentals

New Oriental Education & Technology Group Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.00 and a Current Ratio set at 2.00.

Earnings per share (EPS) analysis for New Oriental Education & Technology Group Inc. [EDU] stock

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 EDU. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for New Oriental Education & Technology Group Inc. go to 23.79%.

New Oriental Education & Technology Group Inc. [EDU]: Insider Ownership positions

There are presently around $3,832 million, or 86.50% of EDU stock, in the hands of institutional investors. The top three institutional holders of EDU stocks are: BLACKROCK INC. with ownership of 83,842,700, which is approximately 11.255% of the company’s market cap and around 0.20% of the total institutional ownership; DAVIS SELECTED ADVISERS, holding 70,536,201 shares of the stock with an approximate value of $206.67 million in EDU stocks shares; and SCHRODER INVESTMENT MANAGEMENT GROUP, currently with $204.09 million in EDU stock with ownership of nearly 13.916% of the company’s market capitalization.

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Positions in New Oriental Education & Technology Group Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 236 institutional holders increased their position in New Oriental Education & Technology Group Inc. [NYSE:EDU] by around 183,103,130 shares. Additionally, 212 investors decreased positions by around 241,321,283 shares, while 47 investors held positions by with 883,362,006 shares. The mentioned changes placed institutional holdings at 1,307,786,419 shares, according to the latest SEC report filing. EDU stock had 61 new institutional investments in for a total of 27,780,912 shares, while 75 institutional investors sold positions of 35,134,313 shares during the same period.

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