Puxin Limited [NYSE: NEW] jumped around 0.02 points on Tuesday, while shares priced at $0.67 at the close of the session, up 2.78%. The company report on July 27, 2021 that Puxin Limited Responds to Media Reports.
Puxin Limited (NYSE: NEW) (“Puxin” or the “Company”), a successful consolidator of the after-school education industry 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 Burdens of Homework and After-school Tutoring for Students of 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, among others, (i) institutions providing after-school tutoring services on academic subjects in China’s compulsory education system, or Academic AST Institutions, are required to be registered as non-profit, no approval will be granted to establish new Academic AST Institutions, and online Academic AST Institutions will be subject to approvals; (ii) foreign ownership in Academic AST Institutions is prohibited, including through contractual arrangements, and companies with existing foreign ownership are required to make rectification; (iii) listed companies are prohibited from raising capital to invest in businesses that offer after-school tutoring services on academic subjects of compulsory education; (iv) Academic AST Institutions are prohibited from providing tutoring services on academic subjects of compulsory education during public holidays, weekends and school breaks; and (v) Academic AST Institutions are required to follow the fee standards to be determined by competent government authorities. The Opinion also provides that the supervision on institutions providing after-school tutoring on academic subjects of high schools (which are not within China’s compulsory education system) will be implemented with reference to the Opinion.
The Company will follow the requirements under the Opinion and comply with all applicable rules and regulations in providing educational services, including those to be adopted by local governmental authorities following the Opinion. The Company is carefully considering appropriate compliance measures in response to the Opinion, and expects such measures to have material adverse impact on the Company’s after-school tutoring services, results of operations and prospectus. 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.
Puxin Limited stock is now -88.49% down from its year-to-date (YTD) trading value. NEW Stock saw the intraday high of $0.7199 and lowest of $0.612 per share. The company’s 52-week high price is 12.39, which means current price is +9.94% above from all time high which was touched on 02/19/21.
Compared to the average trading volume of 1.17M shares, NEW reached a trading volume of 3099749 in the most recent trading day, which is why market watchdogs consider the stock to be active.
What do top market gurus say about Puxin Limited [NEW]?
The Average True Range (ATR) for Puxin Limited is set at 0.15, with the Price to Sales ratio for NEW stock in the period of the last 12 months amounting to 0.20. The Price to Book ratio for the last quarter was 0.81, with the Price to Cash per share for the same quarter was set at 0.33.
How has NEW stock performed recently?
Puxin Limited [NEW] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -44.62. With this latest performance, NEW shares dropped by -63.58% in over the last four-week period, additionally sinking by -89.69% over the last 6 months – not to mention a drop of -93.58% 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 NEW stock in for the last two-week period is set at 20.88, with the RSI for the last a single of trading hit 16.12, and the three-weeks RSI is set at 25.13 for Puxin Limited [NEW]. The present Moving Average for the last 50 days of trading for this stock 1.7260, while it was recorded at 0.9344 for the last single week of trading, and 5.0950 for the last 200 days.
Puxin Limited [NEW]: Deeper insight into the fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Puxin Limited [NEW] shares currently have an operating margin of -5.94 and a Gross Margin at +46.33. Puxin Limited’s Net Margin is presently recorded at -1.11.
Return on Total Capital for NEW is now -7.33, given the latest momentum, and Return on Invested Capital for the company is -2.86. Return on Equity for this stock declined to -9.11, with Return on Assets sitting at -0.68. When it comes to the capital structure of this company, Puxin Limited [NEW] has a Total Debt to Total Equity ratio set at 478.34. Additionally, NEW Total Debt to Total Capital is recorded at 82.71, with Total Debt to Total Assets ending up at 44.00. Long-Term Debt to Equity for the company is recorded at 171.33, with the Long-Term Debt to Total Capital now at 29.62.
Reflecting on the efficiency of the workforce at the company, Puxin Limited [NEW] managed to generate an average of -$484 per employee. Receivables Turnover for the company is 10.75 with a Total Asset Turnover recorded at a value of 0.61.Puxin Limited’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.40 and a Current Ratio set at 0.40.
Insider trade positions for Puxin Limited [NEW]
There are presently around $7 million, or 12.00% of NEW stock, in the hands of institutional investors. The top three institutional holders of NEW stocks are: TB ALTERNATIVE ASSETS LTD. with ownership of 2,246,600, which is approximately 0% of the company’s market cap and around 0.29% of the total institutional ownership; FRANCHISE CAPITAL LTD, holding 1,161,869 shares of the stock with an approximate value of $0.78 million in NEW stocks shares; and JPMORGAN CHASE & CO, currently with $0.76 million in NEW stock with ownership of nearly 36.141% of the company’s market capitalization.
Positions in Puxin Limited stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 26 institutional holders increased their position in Puxin Limited [NYSE:NEW] by around 3,612,818 shares. Additionally, 10 investors decreased positions by around 1,011,136 shares, while 7 investors held positions by with 5,732,788 shares. The mentioned changes placed institutional holdings at 10,356,742 shares, according to the latest SEC report filing. NEW stock had 16 new institutional investments in for a total of 2,221,468 shares, while 2 institutional investors sold positions of 445,152 shares during the same period.