Xiangdong Chen Acquires 167,051 Shares of Gaotu Techedu (NYSE:GOTU) Stock

Gaotu Techedu Inc. (NYSE:GOTU) CEO Xiangdong Chen purchased 167,051 shares of Gaotu Techedu stock in a transaction dated 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 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 purchase was disclosed in a legal filing with the SEC, which is accessible through the SEC website.

Xiangdong Chen also recently made the following trade(s):

• On Wednesday, June 17th, Xiangdong Chen bought 59,148 shares of Gaotu Techedu stock. The stock was acquired at an average price of $2.42 per share, for a total transaction of $143,138.16.
• On Tuesday, June 16th, Xiangdong Chen acquired 73,801 shares of Gaotu Techedu stock. The shares were acquired at an average cost of $2.28 per share, with a total value of $168,266.28.
• On Thursday, June 11th, Xiangdong Chen bought 200,000 shares of Gaotu Techedu stock. The shares were bought at an average cost of $2.23 per share, with a total value of $446,000.00.

Gaotu Techedu Price Performance

Gaotu Techedu stock opened at $1.65 on Monday. The company has a market capitalization of $394.55 million, a price-to-earnings ratio of -6.85 and a beta of 0.60. The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.89 and a current ratio of 0.91. Gaotu Techedu Inc. has a 1 year low of $1.40 and a 1 year high of $4.12. The company’s 50 day simple moving average is $1.81 and its 200-day simple moving average is $2.08.

Gaotu Techedu (NYSE:GOTU) last released its quarterly earnings results on Tuesday, June 2nd. The company reported $0.02 EPS for the quarter. The business had revenue of $245.04 million during the quarter, compared to analyst estimates of $233.35 million. Gaotu Techedu had a negative return on equity of 29.69% and a negative net margin of 6.42%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in GOTU. SmartHarvest Portfolios LLC purchased a new stake in Gaotu Techedu in the first quarter valued at approximately $29,000. HRT Financial LP increased its holdings in shares of 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 acquiring an additional 10,221 shares during the period. Walleye Trading LLC raised its position 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 purchasing an additional 11,383 shares during the last quarter. Quadrature Capital Ltd acquired a new stake in Gaotu Techedu during the 4th quarter worth $92,000. Finally, Federation des caisses Desjardins du Quebec purchased a new position in Gaotu Techedu during the 4th quarter worth $104,000. Hedge funds and other institutional investors own 48.42% of the company’s stock.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings downgraded Gaotu Techedu from a “sell (d-)” rating to a “sell (e+)” rating in a report on Thursday, June 11th. One equities research analyst has rated the stock with a Sell rating, According to MarketBeat, the stock currently has a consensus rating of “Sell”.

About Gaotu Techedu

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.