Gaotu Techedu (NYSE:GOTU) Shares Gap Down – Here’s Why

Gaotu Techedu Inc. (NYSE:GOTU) gapped down before the market opened on Wednesday . The stock had previously closed at $2.61, but opened at $2.50. Gaotu Techedu shares last traded at $2.5150, with a volume of 343,966 shares.

Analysts Set New Price Targets

Separately, Weiss Ratings restated a “sell (d-)” rating on shares of Gaotu Techedu in a research report on Wednesday, October 8th. One equities research analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, Gaotu Techedu presently has a consensus rating of “Sell”.

Gaotu Techedu Stock Down 4.8%

The stock has a 50-day simple moving average of $3.01 and a 200-day simple moving average of $3.48. The firm has a market capitalization of $629.18 million, a PE ratio of -6.51 and a beta of 0.13.

Gaotu Techedu (NYSE:GOTU) last issued its quarterly earnings results on Tuesday, August 26th. The company reported ($0.12) EPS for the quarter, beating analysts’ consensus estimates of ($0.16) by $0.04. The firm had revenue of $27.09 million for the quarter, compared to analysts’ expectations of $182.85 million. Gaotu Techedu had a negative return on equity of 37.66% and a negative net margin of 12.97%.

Institutional Investors Weigh In On Gaotu Techedu

Several institutional investors have recently added to or reduced their stakes in GOTU. Prime Capital Investment Advisors LLC purchased a new position in shares of Gaotu Techedu in the second quarter worth about $36,000. Quadrature Capital Ltd bought a new position in Gaotu Techedu in the 2nd quarter worth approximately $42,000. Walleye Trading LLC grew its stake in Gaotu Techedu by 110.1% in the 2nd 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 in the last quarter. Cornerstone Investment Partners LLC bought a new stake in Gaotu Techedu during the 2nd quarter valued at $138,000. Finally, Centiva Capital LP purchased a new stake in shares of Gaotu Techedu during the third quarter worth $133,000. 48.42% of the stock is owned by hedge funds and other institutional investors.

Gaotu Techedu Company Profile

Gaotu Techedu Inc, a technology-driven education company, provides learning services, educational content, and digitalized learning products in the People's Republic of China. The company offers traditional online academic subject tutoring services that covers academic subjects, such as mathematics, English, Chinese, physics, chemistry, biology, history, geography, and political science for students; non-academic tutoring services; personal interest courses comprising chess learning, family relationships and education, humanities, and science courses; and professional courses primarily for college students and adults preparing for professional qualification exams, such as teacher's qualification, Chartered Financial Analyst designation, Certified Public Accountant designation, and other exams.