CLSA lifts Gaotu Techedu Inc. [GOTU] price estimate. Who else is bullish?

Gaotu Techedu Inc. [NYSE: GOTU] closed the trading session at $1.63 on 09/07/22. The day’s price range saw the stock hit a low of $1.48, while the highest price level was $1.64. The company report on August 25, 2022 that Gaotu Techedu to Report Second Quarter 2022 Financial Results on September 8, 2022.


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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 announced that it will report its second quarter 2022 financial results ended June 30, 2022, before U.S. markets open on Thursday, September 8, 2022.

Gaotu’s management will hold an earnings conference call at 8:00 AM U.S. Eastern Time on Thursday, September 8, 2022 (8:00 PM on Thursday, September 8, 2022, Beijing/Hong Kong Time). Dial-in details for the earnings conference call are as follows:.

The stocks have a year to date performance of -15.98 percent and weekly performance of -6.86 percent. The stock has been moved at 3.82 percent over the last six months. The stock has performed 1.24 percent around the most recent 30 days and changed 1.87 percent over the most recent 3-months.

If compared to the average trading volume of 4.05M shares, GOTU reached to a volume of 2590827 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 $2.52 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 3.70. 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 0.58. The Price to Book ratio for the last quarter was 0.98, with the Price to Cash per share for the same quarter was set at 1.67.

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 -6.86. With this latest performance, GOTU shares gained by 1.24% in over the last four-week period, additionally plugging by 3.82% over the last 6 months – not to mention a drop of -50.30% 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 49.73, with the RSI for the last a single of trading hit 50.95, and the three-weeks RSI is set at 49.08 for Gaotu Techedu Inc. [GOTU]. The present Moving Average for the last 50 days of trading for this stock 1.7254, while it was recorded at 1.6260 for the last single week of trading, and 1.8189 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 3.00 and a Current Ratio set at 3.00.

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

There are presently around $62 million, or 26.20% of GOTU stock, in the hands of institutional investors. The top three institutional holders of GOTU stocks are: RENAISSANCE TECHNOLOGIES LLC with ownership of 6,779,500, which is approximately 72.064% of the company’s market cap and around 1.75% of the total institutional ownership; GOLDMAN SACHS GROUP INC, holding 5,598,005 shares of the stock with an approximate value of $9.12 million in GOTU stocks shares; and VANGUARD GROUP INC, currently with $8.59 million in GOTU stock with ownership of nearly 3.211% of the company’s market capitalization.

Positions in Gaotu Techedu Inc. stocks held by institutional investors increased at the end of September and at the time of the September reporting period, where 28 institutional holders increased their position in Gaotu Techedu Inc. [NYSE:GOTU] by around 5,834,079 shares. Additionally, 37 investors decreased positions by around 14,603,848 shares, while 12 investors held positions by with 17,621,142 shares. The mentioned changes placed institutional holdings at 38,059,069 shares, according to the latest SEC report filing. GOTU stock had 11 new institutional investments in for a total of 819,697 shares, while 10 institutional investors sold positions of 2,792,282 shares during the same period.

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