New Oriental Education & Technology Group Inc. [EDU] is -40.00% lower this YTD. Is it still time to buy?


New Oriental Education & Technology Group Inc. [NYSE: EDU] closed the trading session at $1.26 on 03/25/22. The day’s price range saw the stock hit a low of $1.20, while the highest price level was $1.2799. The company report on November 14, 2021 that New Oriental Education & Technology Group Inc. Provides Business Updates.

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New Oriental Education & Technology Group Inc. (“New Oriental” or the “Company”) (NYSE: EDU and SEHK: 9901), a provider of private educational services in China, today provided business updates following 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.

In compliance with the Opinion and applicable rules, regulations and measures, the Company plans to cease offering tutoring services related to academic subjects to students from kindergarten through grade nine (“K-9 Academic AST Services”) at all learning centers across China by the end of 2021. The Company expects that the cessation will have a substantial adverse impact on the Company’s revenues for the fiscal year ending May 31, 2022 and subsequent periods. In the fiscal years ended May 31, 2020 and 2021, the revenues from offering K-9 Academic AST Services accounted for approximately 50% to 60% of the Company’s total revenues for each fiscal year.

The stocks have a year to date performance of -40.00 percent and weekly performance of -1.56 percent. The stock has been moved at -32.62 percent over the last six months. The stock has performed -12.50 percent around the most recent 30 days and changed -38.54 percent over the most recent 3-months.

If compared to the average trading volume of 27.15M shares, EDU reached to a volume of 20496902 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 New Oriental Education & Technology Group Inc. [EDU]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for EDU shares is $5.99 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on EDU stock is a recommendation set at 2.00. 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.

Daiwa Securities have made an estimate for New Oriental Education & Technology Group Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on March 09, 2022. While these analysts kept the previous recommendation, Morgan Stanley dropped their target price from $8.60 to $3.50. The new note on the price target was released on August 30, 2021, representing the official price target for New Oriental Education & Technology Group Inc. stock. Previously, the target price had yet another drop from $20.10 to $2.50, while Deutsche Bank kept a Hold rating on EDU stock. On July 27, 2021, analysts decreased their price target for EDU shares from 11 to 2.40.

The Average True Range (ATR) for New Oriental Education & Technology Group Inc. is set at 0.13, with the Price to Sales ratio for EDU stock in the period of the last 12 months amounting to 0.52. The Price to Book ratio for the last quarter was 0.52, with the Price to Cash per share for the same quarter was set at 2.68.

EDU stock trade performance evaluation

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 -1.56. With this latest performance, EDU shares dropped by -12.50% in over the last four-week period, additionally sinking by -32.62% over the last 6 months – not to mention a drop of -91.15% 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 48.10, with the RSI for the last a single of trading hit 50.51, and the three-weeks RSI is set at 46.35 for New Oriental Education & Technology Group Inc. [EDU]. The present Moving Average for the last 50 days of trading for this stock 1.4063, while it was recorded at 1.2860 for the last single week of trading, and 2.7224 for the last 200 days.

New Oriental Education & Technology Group Inc. [EDU]: An insightful look at the core 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 +3.49 and a Gross Margin at +52.37. New Oriental Education & Technology Group Inc.’s Net Margin is presently recorded at +7.82.

Return on Total Capital for EDU is now 2.56, given the latest momentum, and Return on Invested Capital for the company is 6.37. Return on Equity for this stock inclined to 8.74, with Return on Assets sitting at 4.00. 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 44.01. Additionally, EDU Total Debt to Total Capital is recorded at 30.56, with Total Debt to Total Assets ending up at 21.30. Long-Term Debt to Equity for the company is recorded at 33.55, with the Long-Term Debt to Total Capital now at 23.30.

Reflecting on the efficiency of the workforce at the company, New Oriental Education & Technology Group Inc. [EDU] managed to generate an average of $24,650 per employee. Receivables Turnover for the company is 36.38 with a Total Asset Turnover recorded at a value of 0.51.New Oriental Education & Technology Group Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.30 and a Current Ratio set at 2.30.

New Oriental Education & Technology Group Inc. [EDU]: Insider Ownership positions

There are presently around $1,273 million, or 66.80% of EDU stock, in the hands of institutional investors. The top three institutional holders of EDU stocks are: MORGAN STANLEY with ownership of 101,216,366, which is approximately 84.989% of the company’s market cap and around 0.20% of the total institutional ownership; BLACKROCK INC., holding 62,836,120 shares of the stock with an approximate value of $79.17 million in EDU stocks shares; and VANGUARD GROUP INC, currently with $63.83 million in EDU stock with ownership of nearly -6.431% of the company’s market capitalization.

Positions in New Oriental Education & Technology Group Inc. stocks held by institutional investors increased at the end of April and at the time of the April reporting period, where 121 institutional holders increased their position in New Oriental Education & Technology Group Inc. [NYSE:EDU] by around 273,772,793 shares. Additionally, 157 investors decreased positions by around 194,854,189 shares, while 38 investors held positions by with 542,034,793 shares. The mentioned changes placed institutional holdings at 1,010,661,775 shares, according to the latest SEC report filing. EDU stock had 43 new institutional investments in for a total of 76,456,615 shares, while 67 institutional investors sold positions of 26,298,512 shares during the same period.