New Oriental Education & Technology Group Inc. [EDU] Revenue clocked in at $3.86 billion, down -89.24% YTD: What’s Next?

New Oriental Education & Technology Group Inc. [NYSE: EDU] price plunged by -4.31 percent to reach at -$0.09. The company report on August 19, 2021 that New Oriental Education & Technology Group Inc. Provides Update on Regulatory Development.

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 the Beijing Municipality Government and the Beijing Municipal Committee of the Communist Party of China jointly issued the “Beijing Municipality’s Measures to Further Reduce the Burden of Homework and After-School Tutoring on Students in Compulsory Education in Beijing” (the “Beijing Measures”) on August 14, 2021, and published the full text of the Beijing Measures on August 18, 2021. The Beijing Measures were adopted to implement the Opinions on Further Alleviating the Burden of Homework and After-School Tutoring for Students in Compulsory Education, published in July by the General Office of the CPC Central Committee and the General Office of the State Council, and aims to ensure that “the excessive burden upon students from school homework and after-school tutoring, the education expenditures from their families and the burden on their parents’ energy will be effectively reduced by the end of 2021, with significant impact achieved within two years.”.

With respect to after-school tutoring services, among other things, the Beijing Measures contain the following provisions:.

A sum of 27950957 shares traded at recent session while its average daily volume was at 81.55M shares. New Oriental Education & Technology Group Inc. shares reached a high of $2.14 and dropped to a low of $2.00 until finishing in the latest session at $2.00.

Guru’s Opinion on New Oriental Education & Technology Group Inc. [EDU]:

Morgan Stanley have made an estimate for New Oriental Education & Technology Group Inc. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on August 30, 2021. While these analysts kept the previous recommendation, Deutsche Bank dropped their target price from $20.10 to $2.50. The new note on the price target was released on July 27, 2021, representing the official price target for New Oriental Education & Technology Group Inc. stock. Previously, the target price had yet another drop from $11 to $2.40, while Daiwa Securities kept a Neutral rating on EDU stock.

The Average True Range (ATR) for New Oriental Education & Technology Group Inc. is set at 0.18, with the Price to Sales ratio for EDU stock in the period of the last 12 months amounting to 0.95. The Price to Book ratio for the last quarter was 0.69, with the Price to Cash per share for the same quarter was set at 3.31.

EDU Stock Performance Analysis:

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 -17.70. With this latest performance, EDU shares gained by 1.52% in over the last four-week period, additionally sinking by -88.28% over the last 6 months – not to mention a drop of -86.82% 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 35.19, with the RSI for the last a single of trading hit 36.06, and the three-weeks RSI is set at 33.27 for New Oriental Education & Technology Group Inc. [EDU]. The present Moving Average for the last 50 days of trading for this stock 3.30, while it was recorded at 2.14 for the last single week of trading, and 12.05 for the last 200 days.

Insight into New Oriental Education & Technology Group Inc. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and New Oriental Education & Technology Group Inc. [EDU] shares currently have an operating margin of +11.15 and a Gross Margin at +55.60. New Oriental Education & Technology Group Inc.’s Net Margin is presently recorded at +11.55.

Return on Total Capital for EDU is now 11.31, given the latest momentum, and Return on Invested Capital for the company is 12.97. Return on Equity for this stock inclined to 16.25, with Return on Assets sitting at 7.39. When it comes to the capital structure of this company, New Oriental Education & Technology Group Inc. [EDU] has a Total Debt to Total Equity ratio set at 57.81. Additionally, EDU Total Debt to Total Capital is recorded at 36.63, with Total Debt to Total Assets ending up at 24.10. Long-Term Debt to Equity for the company is recorded at 43.75, with the Long-Term Debt to Total Capital now at 27.72.

Receivables Turnover for the company is 40.16 with a Total Asset Turnover recorded at a value of 0.64.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.

EDU Stock EPS

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 14.81%.

New Oriental Education & Technology Group Inc. [EDU] Insider Position Details

There are presently around $2,449 million, or 80.60% of EDU stock, in the hands of institutional investors. The top three institutional holders of EDU stocks are: DAVIS SELECTED ADVISERS with ownership of 106,357,379, which is approximately 50.784% of the company’s market cap and around 0.20% of the total institutional ownership; JPMORGAN CHASE & CO, holding 79,190,041 shares of the stock with an approximate value of $158.38 million in EDU stocks shares; and BLACKROCK INC., currently with $156.89 million in EDU stock with ownership of nearly -6.437% 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 October and at the time of the October reporting period, where 230 institutional holders increased their position in New Oriental Education & Technology Group Inc. [NYSE:EDU] by around 266,870,852 shares. Additionally, 215 investors decreased positions by around 338,764,305 shares, while 48 investors held positions by with 618,765,767 shares. The mentioned changes placed institutional holdings at 1,224,400,924 shares, according to the latest SEC report filing. EDU stock had 67 new institutional investments in for a total of 68,207,473 shares, while 92 institutional investors sold positions of 102,715,402 shares during the same period.

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