New Oriental Education & Technology Group Inc. [EDU] is 55.52% higher this YTD. Is it still time to buy?

New Oriental Education & Technology Group Inc. [NYSE: EDU] gained 11.77% on the last trading session, reaching $32.66 price per share at the time. The company report on October 26, 2022 that New Oriental Announces Results for the First Fiscal Quarter Ended August 31, 2022.


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New Oriental Education & Technology Group Inc. (the “Company” or “New Oriental”) (NYSE: EDU/ 9901.SEHK), a provider of private educational services in China, today announced its unaudited financial results for the first fiscal quarter ended August 31, 2022, which is the first quarter of New Oriental’s fiscal year 2023.

Financial Highlights for the First Fiscal Quarter Ended August 31, 2022.

New Oriental Education & Technology Group Inc. represents 169.70 million in outstanding shares, while the company has a total market value of $5.22 billion with the latest information. EDU stock price has been found in the range of $30.87 to $32.89.

If compared to the average trading volume of 2.19M shares, EDU reached a trading volume of 2803954 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 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 $36.43 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 1.70. 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 New Oriental Education & Technology Group Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on October 27, 2022. While these analysts kept the previous recommendation, BofA Securities raised their target price from $18.80 to $36.60. The new note on the price target was released on July 29, 2022, representing the official price target for New Oriental Education & Technology Group Inc. stock.

The Average True Range (ATR) for New Oriental Education & Technology Group Inc. is set at 2.10, with the Price to Sales ratio for EDU stock in the period of the last 12 months amounting to 2.05. The Price to Book ratio for the last quarter was 1.45, with the Price to Cash per share for the same quarter was set at 26.61.

Trading performance analysis for EDU stock

New Oriental Education & Technology Group Inc. [EDU] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 15.16. With this latest performance, EDU shares gained by 13.01% in over the last four-week period, additionally plugging by 121.88% over the last 6 months – not to mention a rise of 51.91% 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 66.25, with the RSI for the last a single of trading hit 71.53, and the three-weeks RSI is set at 62.93 for New Oriental Education & Technology Group Inc. [EDU]. The present Moving Average for the last 50 days of trading for this stock 25.84, while it was recorded at 30.09 for the last single week of trading, and 20.02 for the last 200 days.

New Oriental Education & Technology Group Inc. [EDU]: A deeper dive into fundamental analysis

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 -17.61 and a Gross Margin at +43.51. New Oriental Education & Technology Group Inc.’s Net Margin is presently recorded at -38.25.

Return on Total Capital for EDU is now -9.39, given the latest momentum, and Return on Invested Capital for the company is -22.05. Return on Equity for this stock declined to -27.56, with Return on Assets sitting at -14.68. 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 18.36. Additionally, EDU Total Debt to Total Capital is recorded at 15.51, with Total Debt to Total Assets ending up at 11.28. Long-Term Debt to Equity for the company is recorded at 13.81, with the Long-Term Debt to Total Capital now at 11.67.

Reflecting on the efficiency of the workforce at the company, New Oriental Education & Technology Group Inc. [EDU] managed to generate an average of -$174,499 per employee. Receivables Turnover for the company is 20.96 with a Total Asset Turnover recorded at a value of 0.38.New Oriental Education & Technology Group Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.60 and a Current Ratio set at 2.60.

New Oriental Education & Technology Group Inc. [EDU]: 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 EDU. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for New Oriental Education & Technology Group Inc. go to 14.81%.

An analysis of insider ownership at New Oriental Education & Technology Group Inc. [EDU]

There are presently around $2,659 million, or 55.60% of EDU stock, in the hands of institutional investors. The top three institutional holders of EDU stocks are: BAUPOST GROUP LLC/MA with ownership of 7,685,706, which is approximately -3.929% of the company’s market cap and around 0.20% of the total institutional ownership; FENGHE FUND MANAGEMENT PTE. LTD., holding 6,205,353 shares of the stock with an approximate value of $202.67 million in EDU stocks shares; and GOLDMAN SACHS GROUP INC, currently with $179.86 million in EDU stock with ownership of nearly 58.637% of the company’s market capitalization.

84 institutional holders increased their position in New Oriental Education & Technology Group Inc. [NYSE:EDU] by around 20,482,763 shares. Additionally, 83 investors decreased positions by around 18,568,589 shares, while 22 investors held positions by with 42,349,395 shares. The mentioned changes placed institutional holdings at 81,400,747 shares, according to the latest SEC report filing. EDU stock had 41 new institutional investments in for a total of 14,919,510 shares, while 37 institutional investors sold positions of 4,854,397 shares during the same period.

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