Gaotu Techedu (NYSE:GOTU) Trading Down 5.1% – Should You Sell?

Gaotu Techedu Inc. (NYSE:GOTU)’s stock price fell 5.1% during mid-day trading on Wednesday . The stock traded as low as $2.99 and last traded at $3.00. 660,689 shares traded hands during trading, a decline of 81% from the average session volume of 3,570,167 shares. The stock had previously closed at $3.16.

Analyst Upgrades and Downgrades

Separately, Citigroup cut Gaotu Techedu from a “buy” rating to a “sell” rating in a research note on Tuesday, August 27th.

Gaotu Techedu Price Performance

The firm has a market capitalization of $771.40 million, a P/E ratio of -37.31 and a beta of -0.01. The firm has a 50-day moving average price of $3.36 and a two-hundred day moving average price of $4.91.

Gaotu Techedu (NYSE:GOTU) last announced its quarterly earnings data on Tuesday, August 27th. The company reported ($0.23) earnings per share for the quarter. The company had revenue of $138.95 million for the quarter. Gaotu Techedu had a negative net margin of 17.63% and a negative return on equity of 20.26%.

Institutional Trading of Gaotu Techedu

A number of large investors have recently modified their holdings of GOTU. Healthcare of Ontario Pension Plan Trust Fund raised its position in Gaotu Techedu by 97.8% during the 1st quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 2,365,100 shares of the company’s stock valued at $15,491,000 after purchasing an additional 1,169,300 shares in the last quarter. BNP Paribas Financial Markets purchased a new stake in Gaotu Techedu in the first quarter worth about $6,360,000. Millennium Management LLC grew its holdings in Gaotu Techedu by 1,233.8% during the 2nd quarter. Millennium Management LLC now owns 579,011 shares of the company’s stock worth $2,837,000 after acquiring an additional 535,601 shares in the last quarter. BRIGHT VALLEY CAPITAL Ltd bought a new stake in shares of Gaotu Techedu in the 2nd quarter valued at about $2,450,000. Finally, National Bank of Canada FI purchased a new stake in shares of Gaotu Techedu in the 2nd quarter worth approximately $2,135,000. Hedge funds and other institutional investors own 48.42% of the company’s stock.

About Gaotu Techedu

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.