Gaotu Techedu Inc. [GOTU] is 75.85% higher this YTD. Is it still time to buy?

Gaotu Techedu Inc. [NYSE: GOTU] jumped around 0.36 points on Monday, while shares priced at $4.15 at the close of the session, up 9.50%. The company report on January 6, 2023 that Gaotu Regains Compliance with NYSE Continued Listing Criterion.

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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 the Company has received a letter from the New York Stock Exchange (the “NYSE”) dated January 3, 2023, notifying that the Company has regained compliance with the NYSE’s continued listing criterion that requires a minimum average stock price of $1.00 per share over a consecutive 30 trading-day period as set forth in Section 802.01C of the NYSE Listed Company Manual (the “NYSE Continued Listing Criterion”).

As previously announced, the Company received a letter from the NYSE dated November 16, 2022, notifying the Company that its American depositary shares (the “ADSs”) had fallen below the NYSE’s continued listing criterion of a minimum share price of $1.00 per ADS over a 30 trading-day period. On January 3, the NYSE confirmed that the average stock price of the Company’s ADSs for the previous consecutive 30 trading-day period was above $1.00 per ADS. Accordingly, the Company has regained compliance with the NYSE Continued Listing Criterion.

Gaotu Techedu Inc. stock is now 75.85% up from its year-to-date (YTD) trading value. GOTU Stock saw the intraday high of $4.38 and lowest of $3.7703 per share. The company’s 52-week high price is 4.23, which means current price is +66.67% above from all time high which was touched on 01/23/23.

Compared to the average trading volume of 6.44M shares, GOTU reached a trading volume of 9226902 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.

Citigroup have made an estimate for Gaotu Techedu Inc. shares, keeping their opinion on the stock as Sell, with their previous recommendation back on December 30, 2022. The new note on the price target was released on March 11, 2022, representing the official price target for Gaotu Techedu Inc. stock. Previously, the target price had yet another drop from $20 to $2.60, while Goldman kept a Sell rating on GOTU stock. On July 26, 2021, analysts decreased their price target for GOTU shares from 19 to 2.70.

The Average True Range (ATR) for Gaotu Techedu Inc. is set at 0.44, with the Price to Sales ratio for GOTU stock in the period of the last 12 months amounting to 2.31. The Price to Book ratio for the last quarter was 2.40, with the Price to Cash per share for the same quarter was set at 1.91.

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 8.92. With this latest performance, GOTU shares gained by 34.74% in over the last four-week period, additionally plugging by 126.78% over the last 6 months – not to mention a rise of 93.02% 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 66.26, with the RSI for the last a single of trading hit 67.96, and the three-weeks RSI is set at 65.72 for Gaotu Techedu Inc. [GOTU]. The present Moving Average for the last 50 days of trading for this stock 2.30, while it was recorded at 3.76 for the last single week of trading, and 1.69 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 3.10 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 $127 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 $22.86 million in GOTU stocks shares; and RENAISSANCE TECHNOLOGIES LLC, currently with $19.01 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 March and at the time of the March 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 11,542,055 shares, while 13 investors held positions by with 14,272,329 shares. The mentioned changes placed institutional holdings at 30,622,463 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 20 institutional investors sold positions of 5,304,102 shares during the same period.

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