Key Points
- CEO Xiangdong Chen kept buying shares of Gaotu Techedu, purchasing 73,801 shares for about $168,266 on June 16, followed by additional buys of 59,148 shares and 200,000 shares in nearby trades.
- The insider buying increased his stake to 7,788,330 shares, worth roughly $17.76 million, representing a 0.96% rise in ownership.
- Gaotu Techedu reported mixed fundamentals: the stock was up 4.2% and the company beat revenue expectations in its latest quarter, but it remains unprofitable and analysts currently rate it a Sell.
Gaotu Techedu Inc. (NYSE:GOTU - Get Free Report) CEO Xiangdong Chen purchased 73,801 shares of the firm's stock in a transaction that occurred on Tuesday, June 16th. The stock was acquired at an average price of $2.28 per share, for a total transaction of $168,266.28. Following the completion of the purchase, the chief executive officer owned 7,788,330 shares of the company's stock, valued at approximately $17,757,392.40. This represents a 0.96% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website.
Xiangdong Chen also recently made the following trade(s):
- On Wednesday, June 17th, Xiangdong Chen acquired 59,148 shares of Gaotu Techedu stock. The shares were bought at an average cost of $2.42 per share, for a total transaction of $143,138.16.
- On Thursday, June 11th, Xiangdong Chen purchased 200,000 shares of Gaotu Techedu stock. The shares were purchased at an average cost of $2.23 per share, for a total transaction of $446,000.00.
Gaotu Techedu Stock Up 4.2%
GOTU opened at $1.63 on Thursday. Gaotu Techedu Inc. has a one year low of $1.40 and a one year high of $4.12. The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.89 and a current ratio of 0.91. The business's fifty day moving average is $1.82 and its two-hundred day moving average is $2.09. The company has a market cap of $389.76 million, a price-to-earnings ratio of -6.77 and a beta of 0.60.
Gaotu Techedu (NYSE:GOTU - Get Free Report) last issued its quarterly earnings data on Tuesday, June 2nd. The company reported $0.02 EPS for the quarter. The firm had revenue of $245.04 million for the quarter, compared to analysts' expectations of $233.35 million. Gaotu Techedu had a negative net margin of 6.42% and a negative return on equity of 29.69%.
Wall Street Analysts Forecast Growth
Separately, Weiss Ratings cut Gaotu Techedu from a "sell (d-)" rating to a "sell (e+)" rating in a report on Thursday, June 11th. One investment analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, the stock has an average rating of "Sell".
Get Our Latest Stock Report on Gaotu Techedu
Institutional Inflows and Outflows
Several institutional investors have recently added to or reduced their stakes in the company. HRT Financial LP raised its stake in Gaotu Techedu by 86.6% in the 4th quarter. HRT Financial LP now owns 22,020 shares of the company's stock valued at $51,000 after purchasing an additional 10,221 shares during the last quarter. Walleye Trading LLC raised its position in shares of Gaotu Techedu by 110.1% in the second quarter. Walleye Trading LLC now owns 21,722 shares of the company's stock valued at $78,000 after buying an additional 11,383 shares during the last quarter. SmartHarvest Portfolios LLC acquired a new position in shares of Gaotu Techedu in the first quarter valued at approximately $29,000. Bank of America Corp DE raised its position in shares of Gaotu Techedu by 10.5% in the third quarter. Bank of America Corp DE now owns 164,737 shares of the company's stock valued at $537,000 after buying an additional 15,651 shares during the last quarter. Finally, American Century Companies Inc. raised its position in shares of Gaotu Techedu by 57.0% in the second quarter. American Century Companies Inc. now owns 61,076 shares of the company's stock valued at $220,000 after buying an additional 22,164 shares during the last quarter. Institutional investors and hedge funds own 48.42% of the company's stock.
About Gaotu Techedu
(
Get Free Report)
Gaotu Techedu Inc (NYSE:GOTU), formerly known as GSX Techedu, is a Beijing-based provider of online education services in China. Since its founding in 2014, the company has built a technology-driven platform that delivers live, interactive tutoring sessions to students primarily in the K-12 segment. Gaotu Techedu's rebranding in 2021 underscored its commitment to leveraging cutting-edge digital tools to expand access to quality instruction across core academic subjects.
The company's main offerings include small-group and one-on-one classes in mathematics, Chinese, English, physics and chemistry, as well as targeted test preparation for high-stakes national and local examinations.
Further Reading
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