Gaotu Techedu (NYSE:GOTU) Releases Quarterly Earnings Results

Gaotu Techedu (NYSE:GOTU) released its earnings results on Thursday. The company reported ($0.05) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.01) by ($0.04), FiscalAI reports. Gaotu Techedu had a negative net margin of 6.42% and a negative return on equity of 29.69%. The business had revenue of $245.82 million during the quarter, compared to the consensus estimate of $238.46 million.

Gaotu Techedu Stock Performance

Shares of NYSE:GOTU opened at $1.73 on Thursday. The company has a market cap of $413.74 million, a price-to-earnings ratio of -7.19 and a beta of 0.70. The company has a 50-day moving average price of $1.74 and a 200-day moving average price of $1.87. The company has a current ratio of 0.91, a quick ratio of 0.89 and a debt-to-equity ratio of 0.10. Gaotu Techedu has a 12 month low of $1.40 and a 12 month high of $4.12.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings downgraded shares of Gaotu Techedu from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Thursday, July 23rd. One investment analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, the company presently has an average rating of “Sell”.

Insider Activity

In other Gaotu Techedu news, CEO Xiangdong Chen purchased 167,051 shares of Gaotu Techedu stock in a transaction that occurred on Thursday, June 18th. The shares were bought at an average price of $2.50 per share, for a total transaction of $417,627.50. Following the acquisition, the chief executive officer directly owned 8,014,529 shares in the company, valued at approximately $20,036,322.50. This trade represents a 2.13% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Insiders bought 500,000 shares of company stock valued at $1,175,032 over the last quarter. 44.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On Gaotu Techedu

Several hedge funds have recently made changes to their positions in GOTU. Millennium Management LLC raised its holdings in shares of Gaotu Techedu by 602.0% during the first quarter. Millennium Management LLC now owns 1,996,144 shares of the company’s stock valued at $6,487,000 after acquiring an additional 1,711,774 shares in the last quarter. American Century Companies Inc. raised its holdings in Gaotu Techedu by 57.0% in the 2nd quarter. American Century Companies Inc. now owns 61,076 shares of the company’s stock worth $220,000 after purchasing an additional 22,164 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its stake in shares of Gaotu Techedu by 157.3% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 1,568,492 shares of the company’s stock valued at $5,662,000 after purchasing an additional 958,782 shares in the last quarter. Walleye Trading LLC increased its position in shares of Gaotu Techedu by 110.1% during 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 period. Finally, Marshall Wace LLP lifted its holdings in Gaotu Techedu by 3,628.9% in the second quarter. Marshall Wace LLP now owns 788,541 shares of the company’s stock worth $2,847,000 after buying an additional 767,394 shares during the period. 48.42% of the stock is owned by hedge funds and other institutional investors.

Gaotu Techedu Company Profile

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.