Gaotu Techedu Inc. [GOTU] moved down -3.73: Why It’s Important

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Gaotu Techedu Inc. [NYSE: GOTU] closed the trading session at $1.29 on 05/11/22. The day’s price range saw the stock hit a low of $1.28, while the highest price level was $1.395. The company report on April 26, 2022 that Gaotu Files 2021 Annual Report on Form 20-F.

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Gaotu Techedu Inc. (“Gaotu” or the “Company”) (NYSE: GOTU), a technology-driven education company and online large-class tutoring service provider in China, today filed with the U.S. Securities and Exchange Commission its annual report on Form 20-F for the fiscal year ended December 31, 2021. The annual report on Form 20-F is available on the Company’s investor relations website at https://ir.gaotu.cn/.

The annual report contains audited financial statements, management’s discussion and analysis and other disclosures.

The stocks have a year to date performance of -33.51 percent and weekly performance of -26.70 percent. The stock has been moved at -55.36 percent over the last six months. The stock has performed -21.82 percent around the most recent 30 days and changed -45.80 percent over the most recent 3-months.

If compared to the average trading volume of 4.88M shares, GOTU reached to a volume of 4210697 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 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 $8.72 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 3.10. 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.

CLSA have made an estimate for Gaotu Techedu Inc. shares, keeping their opinion on the stock as Underperform, with their previous recommendation back on March 11, 2022. While these analysts kept the previous recommendation, Goldman dropped their target price from $20 to $2.60. 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 $19 to $2.70, while CLSA kept a Sell rating on GOTU stock. On July 23, 2021, analysts decreased their price target for GOTU shares from 37 to 3.50.

The Average True Range (ATR) for Gaotu Techedu Inc. is set at 0.13, with the Price to Sales ratio for GOTU stock in the period of the last 12 months amounting to 0.36. The Price to Book ratio for the last quarter was 0.76, with the Price to Cash per share for the same quarter was set at 1.92.

GOTU stock trade performance evaluation

Gaotu Techedu Inc. [GOTU] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -26.70. With this latest performance, GOTU shares dropped by -21.82% in over the last four-week period, additionally sinking by -55.36% over the last 6 months – not to mention a drop of -94.62% 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 35.91, with the RSI for the last a single of trading hit 31.29, and the three-weeks RSI is set at 39.14 for Gaotu Techedu Inc. [GOTU]. The present Moving Average for the last 50 days of trading for this stock 1.6924, while it was recorded at 1.4020 for the last single week of trading, and 2.3755 for the last 200 days.

Gaotu Techedu Inc. [GOTU]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Gaotu Techedu Inc. [GOTU] shares currently have an operating margin of -44.78 and a Gross Margin at +63.46. Gaotu Techedu Inc.’s Net Margin is presently recorded at -47.30.

Return on Equity for this stock declined to -72.46, with Return on Assets sitting at -39.73.

Gaotu Techedu Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.20 and a Current Ratio set at 2.20.

Earnings per share (EPS) analysis for Gaotu Techedu Inc. [GOTU] stock

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%.

Gaotu Techedu Inc. [GOTU]: Insider Ownership positions

Positions in Gaotu Techedu Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 40 institutional holders increased their position in Gaotu Techedu Inc. [NYSE:GOTU] by around 13,667,991 shares. Additionally, 65 investors decreased positions by around 14,198,713 shares, while 12 investors held positions by with 24,096,001 shares. The mentioned changes placed institutional holdings at 51,962,705 shares, according to the latest SEC report filing. GOTU stock had 20 new institutional investments in for a total of 4,910,521 shares, while 31 institutional investors sold positions of 2,201,580 shares during the same period.