Gaotu Techedu Inc. [GOTU] Stock trading around $1.94 per share: What’s Next?

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Gaotu Techedu Inc. [NYSE: GOTU] price surged by 2.65 percent to reach at $0.05. The company report on December 20, 2021 that DEADLINE TODAY REMINDER: The Schall Law Firm Encourages Investors in Gaotu Techedu Inc. f/k/a GSX Techedu Inc. with Losses of $100,000 to Contact the Firm.

The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Goldman Sachs Group Inc. and Morgan Stanley on behalf of shareholders in Gaotu Techedu Inc. (“Gaotu” or “the Company”) (NYSE: GOTU) f/k/a GSX Techedu Inc. (“GSX”) (NYSE: GSX) for violations of the securities laws.


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Investors who purchased the Company’s securities between March 22, 2021 and March 29, 2021, inclusive (the ”Class Period”), are encouraged to contact the firm before December 20, 2021.

A sum of 7368345 shares traded at recent session while its average daily volume was at 9.49M shares. Gaotu Techedu Inc. shares reached a high of $2.02 and dropped to a low of $1.82 until finishing in the latest session at $1.94.

The one-year GOTU stock forecast points to a potential upside of 87.88. The average equity rating for GOTU stock is currently 3.20, trading closer to a bullish pattern in the stock market.

Guru’s Opinion on Gaotu Techedu Inc. [GOTU]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for GOTU shares is $16.01 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on GOTU stock is a recommendation set at 3.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Goldman have made an estimate for Gaotu Techedu Inc. shares, keeping their opinion on the stock as Sell, with their previous recommendation back on July 26, 2021. While these analysts kept the previous recommendation, CLSA raised their target price from $19 to $2.70. The new note on the price target was released on July 26, 2021, representing the official price target for Gaotu Techedu Inc. stock. Previously, the target price had yet another drop from $37 to $3.50, while JP Morgan kept a Underweight rating on GOTU stock.

The Average True Range (ATR) for Gaotu Techedu Inc. is set at 0.23, with the Price to Sales ratio for GOTU stock in the period of the last 12 months amounting to 0.32. The Price to Book ratio for the last quarter was 0.88, with the Price to Cash per share for the same quarter was set at 3.55.

GOTU Stock Performance Analysis:

Gaotu Techedu Inc. [GOTU] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 0.52. With this latest performance, GOTU shares dropped by -19.17% in over the last four-week period, additionally sinking by -85.29% over the last 6 months – not to mention a drop of -96.25% 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 42.12, with the RSI for the last a single of trading hit 45.53, and the three-weeks RSI is set at 41.10 for Gaotu Techedu Inc. [GOTU]. The present Moving Average for the last 50 days of trading for this stock 2.6120, while it was recorded at 1.7940 for the last single week of trading, and 12.1182 for the last 200 days.

Insight into Gaotu Techedu Inc. 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 1.50 and a Current Ratio set at 1.50.

GOTU 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 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%.

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Gaotu Techedu Inc. [GOTU] Insider Position Details

Positions in Gaotu Techedu Inc. stocks held by institutional investors increased at the end of March and at the time of the March reporting period, where 55 institutional holders increased their position in Gaotu Techedu Inc. [NYSE:GOTU] by around 6,254,294 shares. Additionally, 70 investors decreased positions by around 38,996,567 shares, while 21 investors held positions by with 11,054,515 shares. The mentioned changes placed institutional holdings at 56,305,376 shares, according to the latest SEC report filing. GOTU stock had 17 new institutional investments in for a total of 2,386,442 shares, while 35 institutional investors sold positions of 8,847,024 shares during the same period.