For TAL Education Group [TAL], Analyst sees a drop to $5.40. What next?

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TAL Education Group [NYSE: TAL] loss -2.29% or -0.08 points to close at $3.42 with a heavy trading volume of 11811685 shares. The company report on November 12, 2021 that TAL Education Group Provides Updates on Business Operations.

TAL Education Group (“TAL” or the “Company”) (NYSE: TAL), a leading K-12 after-school tutoring services provider in China, today provided updates on the Company’s business operations in response to the recent regulatory developments relating to after-school tutoring services, including the Opinions on Further Alleviating the Burden of Homework and After-School Tutoring for Students in Compulsory Education, published in July 2021 by the General Office of the CPC Central Committee and the General Office of the State Council (the “Opinion”) and the related implementation rules, regulations and measures promulgated by competent authorities.


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In compliance with the Opinion and applicable rules, regulations and measures, the Company plans to cease offering academic subjects to students from kindergarten through grade nine (“K9 Academic AST Services”) in the mainland of China by the end of December 2021. The Company expects that the cessation will have a substantial adverse impact on the Company’s revenues for the fiscal year ending February 28, 2022 and subsequent periods. In the fiscal year ended February 28, 2021, the revenues from offering K9 Academic AST Services accounted for a substantial majority of the Company’s total revenues in the year.

It opened the trading session at $3.54, the shares rose to $3.62 and dropped to $3.395, the range by which the price of stock traded the whole day. The daily chart for TAL points out that the company has recorded -83.23% loss over the past six months. However, it is still -2.7% lower than its most recent low trading price.

If we look at the average trading volume of 14.72M shares, TAL reached to a volume of 11811685 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about TAL Education Group [TAL]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for TAL shares is $40.42 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on TAL stock is a recommendation set at 3.00. 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.

Morgan Stanley have made an estimate for TAL Education Group shares, keeping their opinion on the stock as Equal-Weight, with their previous recommendation back on August 30, 2021. While these analysts kept the previous recommendation, Daiwa Securities raised their target price from $38 to $6.90. The new note on the price target was released on July 27, 2021, representing the official price target for TAL Education Group stock. On July 26, 2021, analysts decreased their price target for TAL shares from 53 to 5.60.

The Average True Range (ATR) for TAL Education Group is set at 0.32, with the Price to Sales ratio for TAL stock in the period of the last 12 months amounting to 0.50. The Price to Book ratio for the last quarter was 0.42, with the Price to Cash per share for the same quarter was set at 9.00. Price to Free Cash Flow for TAL in the course of the last twelve months was 2.36 with Quick ratio for the last quarter at 2.40.

Trading performance analysis for TAL stock

TAL Education Group [TAL] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -12.98. With this latest performance, TAL shares dropped by -35.83% in over the last four-week period, additionally sinking by -83.23% over the last 6 months – not to mention a drop of -94.96% 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 35.58, with the RSI for the last a single of trading hit 32.29, and the three-weeks RSI is set at 38.06 for TAL Education Group [TAL]. The present Moving Average for the last 50 days of trading for this stock 4.35, while it was recorded at 3.54 for the last single week of trading, and 19.53 for the last 200 days.

TAL Education Group [TAL]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and TAL Education Group [TAL] shares currently have an operating margin of -7.79 and a Gross Margin at +54.43. TAL Education Group’s Net Margin is presently recorded at -2.58.

Return on Total Capital for TAL is now -5.22, given the latest momentum, and Return on Invested Capital for the company is -1.87. Return on Equity for this stock declined to -3.01, with Return on Assets sitting at -1.31. When it comes to the capital structure of this company, TAL Education Group [TAL] has a Total Debt to Total Equity ratio set at 79.71. Additionally, TAL Total Debt to Total Capital is recorded at 44.35, with Total Debt to Total Assets ending up at 34.23. Long-Term Debt to Equity for the company is recorded at 67.16, with the Long-Term Debt to Total Capital now at 37.37.

Reflecting on the efficiency of the workforce at the company, TAL Education Group [TAL] managed to generate an average of -$3,339 per employee. Receivables Turnover for the company is 29.61 with a Total Asset Turnover recorded at a value of 0.51.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.

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An analysis of insider ownership at TAL Education Group [TAL]

There are presently around $895 million, or 61.80% of TAL stock, in the hands of institutional investors. The top three institutional holders of TAL stocks are: GOLDMAN SACHS GROUP INC with ownership of 24,272,653, which is approximately 738.798% of the company’s market cap and around 83.90% of the total institutional ownership; BAILLIE GIFFORD & CO, holding 22,065,841 shares of the stock with an approximate value of $75.47 million in TAL stocks shares; and BLACKROCK INC., currently with $64.48 million in TAL stock with ownership of nearly -13.846% of the company’s market capitalization.

Positions in TAL Education Group stocks held by institutional investors increased at the end of January and at the time of the January reporting period, where 117 institutional holders increased their position in TAL Education Group [NYSE:TAL] by around 96,886,710 shares. Additionally, 177 investors decreased positions by around 182,033,809 shares, while 18 investors held positions by with 17,081,137 shares. The mentioned changes placed institutional holdings at 261,839,382 shares, according to the latest SEC report filing. TAL stock had 42 new institutional investments in for a total of 19,517,575 shares, while 109 institutional investors sold positions of 57,000,175 shares during the same period.