Gaotu Techedu Inc. [GOTU] is -13.92% lower this YTD. Is it still time to buy?

Gaotu Techedu Inc. [NYSE: GOTU] gained 12.84% or 0.19 points to close at $1.67 with a heavy trading volume of 5466050 shares. The company report on November 22, 2022 that Gaotu Techedu Announces Third Quarter of 2022 Unaudited Financial Results and a Share Repurchase Program.

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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 third quarter ended September 30, 2022.

It opened the trading session at $1.52, the shares rose to $1.71 and dropped to $1.50, the range by which the price of stock traded the whole day. The daily chart for GOTU points out that the company has recorded -4.02% loss over the past six months. However, it is still -160.94% lower than its most recent low trading price.

If we look at the average trading volume of 2.42M shares, GOTU reached to a volume of 5466050 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 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 $1.69 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 0.14, with the Price to Sales ratio for GOTU stock in the period of the last 12 months amounting to 0.87. The Price to Book ratio for the last quarter was 1.00, with the Price to Cash per share for the same quarter was set at 2.04.

Trading performance analysis for GOTU stock

Gaotu Techedu Inc. [GOTU] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 32.54. With this latest performance, GOTU shares gained by 125.40% in over the last four-week period, additionally sinking by -4.02% over the last 6 months – not to mention a drop of -30.99% 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 77.39, with the RSI for the last a single of trading hit 84.67, and the three-weeks RSI is set at 70.95 for Gaotu Techedu Inc. [GOTU]. The present Moving Average for the last 50 days of trading for this stock 1.0274, while it was recorded at 1.4900 for the last single week of trading, and 1.4946 for the last 200 days.

Gaotu Techedu Inc. [GOTU]: A deeper dive into fundamental analysis

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 3.10 and a Current Ratio set at 3.10.

Gaotu Techedu Inc. [GOTU]: An earnings per share (EPS) analysis

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%.

An analysis of insider ownership at Gaotu Techedu Inc. [GOTU]

There are presently around $53 million, or 21.70% of GOTU stock, in the hands of institutional investors. The top three institutional holders of GOTU stocks are: GOLDMAN SACHS GROUP INC with ownership of 7,263,339, which is approximately 29.749% of the company’s market cap and around 1.74% of the total institutional ownership; VANGUARD GROUP INC, holding 5,508,954 shares of the stock with an approximate value of $9.2 million in GOTU stocks shares; and RENAISSANCE TECHNOLOGIES LLC, currently with $7.65 million in GOTU stock with ownership of nearly -32.448% of the company’s market capitalization.

Positions in Gaotu Techedu Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 19 institutional holders increased their position in Gaotu Techedu Inc. [NYSE:GOTU] by around 4,808,079 shares. Additionally, 41 investors decreased positions by around 11,899,705 shares, while 14 investors held positions by with 14,730,698 shares. The mentioned changes placed institutional holdings at 31,438,482 shares, according to the latest SEC report filing. GOTU stock had 7 new institutional investments in for a total of 1,760,051 shares, while 19 institutional investors sold positions of 5,303,102 shares during the same period.


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