Gaotu Techedu Inc. [GOTU] is 89.18% higher this YTD. Is it still time to buy?

Gaotu Techedu Inc. [NYSE: GOTU] traded at a low on 12/23/22, posting a -6.62 loss after which it closed the day’ session at $3.67. 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.

The results of the trading session contributed to over 10006268 shares changing hands. Over the past one week, the price volatility of Gaotu Techedu Inc. stands at 18.54% while the volatility over the past one month is 14.35%.

The market cap for GOTU stock reached $1.02 billion, with 258.76 million shares outstanding and 254.52 million shares in the current float. Compared to the average trading volume of 4.54M shares, GOTU reached a trading volume of 10006268 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 $2.43 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on 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 0.34, with the Price to Sales ratio for GOTU stock in the period of the last 12 months amounting to 2.26. The Price to Book ratio for the last quarter was 2.18, with the Price to Cash per share for the same quarter was set at 1.73.

How has GOTU stock performed recently?

Gaotu Techedu Inc. [GOTU] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 17.63. With this latest performance, GOTU shares gained by 246.23% in over the last four-week period, additionally plugging by 77.29% over the last 6 months – not to mention a rise of 90.16% 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 80.37, with the RSI for the last a single of trading hit 79.58, and the three-weeks RSI is set at 79.26 for Gaotu Techedu Inc. [GOTU]. The present Moving Average for the last 50 days of trading for this stock 1.38, while it was recorded at 3.55 for the last single week of trading, and 1.56 for the last 200 days.

Gaotu Techedu Inc. [GOTU]: Deeper insight into the fundamentals

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.

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 $115 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 $20.22 million in GOTU stocks shares; and RENAISSANCE TECHNOLOGIES LLC, currently with $16.81 million in GOTU stock with ownership of nearly -32.448% of the company’s market capitalization.

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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