TAL Education Group [TAL] moved down -70.76: Why It’s Important

TAL Education Group [NYSE: TAL] closed the trading session at $6.00 on 07/23/21. The day’s price range saw the stock hit a low of $5.96, while the highest price level was $9.63. The company report on July 25, 2021 that TAL Education Group Provides Update on New Regulations.

TAL Education Group (“TAL” or the “Company”) (NYSE: TAL), a leading K-12 after-school tutoring services provider 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 continue to comply with all applicable rules and regulations in providing educational services, including those to be adopted following the policy directives of the Opinion. The Company is carefully considering the provisions of the Opinion and assessing their implications for the Company’s business. The Company expects the Opinion, related rules and regulations, and the compliance measures to be taken by the Company will have material adverse impact on its after-school tutoring services related to academic subjects in China’s compulsory education system, which in turn may adversely affect the Company’s results of operations and prospect. The Company will proactively seek guidance from and cooperate with 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 -91.61 percent and weekly performance of -69.77 percent. The stock has been moved at -92.11 percent over the last six months. The stock has performed -74.40 percent around the most recent 30 days and changed -90.17 percent over the most recent 3-months.

If compared to the average trading volume of 16.22M shares, TAL reached to a volume of 261990109 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 TAL Education Group [TAL]:

JP Morgan have made an estimate for TAL Education Group shares, keeping their opinion on the stock as Underweight, with their previous recommendation back on July 23, 2021. The new note on the price target was released on June 18, 2021, representing the official price target for TAL Education Group stock. Previously, the target price had yet another raise to $21.50, while Morgan Stanley analysts kept a Underweight rating on TAL stock.

The Average True Range (ATR) for TAL Education Group is set at 3.16, with the Price to Sales ratio for TAL stock in the period of the last 12 months amounting to 2.94. The Price to Book ratio for the last quarter was 0.73, with the Price to Cash per share for the same quarter was set at 2.69. Price to Free Cash Flow for TAL in the course of the last twelve months was 13.86 with Quick ratio for the last quarter at 2.40.

TAL stock trade performance evaluation

TAL Education Group [TAL] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -69.77. With this latest performance, TAL shares dropped by -74.40% in over the last four-week period, additionally sinking by -92.11% over the last 6 months – not to mention a drop of -91.93% 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 21.32, with the RSI for the last a single of trading hit 17.34, and the three-weeks RSI is set at 24.14 for TAL Education Group [TAL]. The present Moving Average for the last 50 days of trading for this stock 28.95, while it was recorded at 17.15 for the last single week of trading, and 59.55 for the last 200 days.

TAL Education Group [TAL]: An insightful look at the core fundamentals

TAL Education Group’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.40 and a Current Ratio set at 2.40.

TAL Education Group [TAL]: Insider Ownership positions

There are presently around $2,186 million, or 76.70% of TAL stock, in the hands of institutional investors. The top three institutional holders of TAL stocks are: MORGAN STANLEY with ownership of 59,547,935, which is approximately 9.538% of the company’s market cap and around 83.90% of the total institutional ownership; UBS ASSET MANAGEMENT AMERICAS INC, holding 57,810,041 shares of the stock with an approximate value of $346.86 million in TAL stocks shares; and BAILLIE GIFFORD & CO, currently with $229.38 million in TAL stock with ownership of nearly -7.001% of the company’s market capitalization.

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Positions in TAL Education Group stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 205 institutional holders increased their position in TAL Education Group [NYSE:TAL] by around 40,126,132 shares. Additionally, 161 investors decreased positions by around 29,621,272 shares, while 32 investors held positions by with 294,622,831 shares. The mentioned changes placed institutional holdings at 364,370,235 shares, according to the latest SEC report filing. TAL stock had 61 new institutional investments in for a total of 12,968,305 shares, while 55 institutional investors sold positions of 7,570,749 shares during the same period.

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