Gaotu Techedu Inc. [GOTU] is -4.12% lower this YTD. Is it still time to buy?


Gaotu Techedu Inc. [NYSE: GOTU] traded at a low on 07/06/22, posting a -6.06 loss after which it closed the day’ session at $1.86. The company report on June 6, 2022 that Gaotu Techedu Announces First Quarter of 2022 Unaudited Financial Results.

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Gaotu Techedu Inc. (NYSE: GOTU) (“Gaotu” or the “Company”), a technology-driven education company and online large-class tutoring service provider in China, today announced its unaudited financial results for the first quarter ended March 31, 2022.

The results of the trading session contributed to over 4046867 shares changing hands. Over the past one week, the price volatility of Gaotu Techedu Inc. stands at 7.15% while the volatility over the past one month is 11.93%.

The market cap for GOTU stock reached $480.18 million, with 257.31 million shares outstanding and 254.47 million shares in the current float. Compared to the average trading volume of 4.61M shares, GOTU reached a trading volume of 4046867 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus 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 $2.58 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 0.18, with the Price to Sales ratio for GOTU stock in the period of the last 12 months amounting to 0.60. The Price to Book ratio for the last quarter was 1.08, with the Price to Cash per share for the same quarter was set at 1.85.

How has GOTU stock performed recently?

Gaotu Techedu Inc. [GOTU] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -5.58. With this latest performance, GOTU shares gained by 40.91% in over the last four-week period, additionally sinking by -3.12% over the last 6 months – not to mention a drop of -86.28% 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 52.85, with the RSI for the last a single of trading hit 48.10, and the three-weeks RSI is set at 53.65 for Gaotu Techedu Inc. [GOTU]. The present Moving Average for the last 50 days of trading for this stock 1.6038, while it was recorded at 1.9420 for the last single week of trading, and 2.1389 for the last 200 days.

Gaotu Techedu Inc. [GOTU]: Deeper insight into the 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 3.00 and a Current Ratio set at 3.00.

Earnings analysis for Gaotu Techedu Inc. [GOTU]

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%.

Insider trade positions for Gaotu Techedu Inc. [GOTU]

There are presently around $92 million, or 32.00% of GOTU stock, in the hands of institutional investors. The top three institutional holders of GOTU stocks are: MORGAN STANLEY with ownership of 6,574,078, which is approximately -0.307% of the company’s market cap and around 1.77% of the total institutional ownership; GOLDMAN SACHS GROUP INC, holding 5,259,772 shares of the stock with an approximate value of $10.41 million in GOTU stocks shares; and VANGUARD GROUP INC, currently with $10.11 million in GOTU stock with ownership of nearly 7.521% of the company’s market capitalization.

Positions in Gaotu Techedu Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 26 institutional holders increased their position in Gaotu Techedu Inc. [NYSE:GOTU] by around 10,282,791 shares. Additionally, 66 investors decreased positions by around 14,602,451 shares, while 9 investors held positions by with 21,818,577 shares. The mentioned changes placed institutional holdings at 46,703,819 shares, according to the latest SEC report filing. GOTU stock had 10 new institutional investments in for a total of 2,222,162 shares, while 35 institutional investors sold positions of 4,744,719 shares during the same period.