Gaotu Techedu Inc. (NYSE: GOTU) stock jumped 9.50% on Monday to $4.15 against a previous-day closing price of $3.79. With 9.23 million shares changed hands, the volume of the stock remained heavier than its average volume of 6.44 million shares. During the session, the Education & Training Services company that operates in wider Consumer Defensive sector, reached to the highest price of $4.3800 whereas the lowest price it dropped to was $3.7703. The 52-week range on GOTU shows that it touched its highest point at $4.23 and its lowest point at $0.64 during that stretch. It currently has a 1-year price target of $2.43. Beta for the stock currently stands at -1.06.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of GOTU was up-trending over the past week, with a rise of 8.92%, but this was up by 34.74% over a month. Three-month performance surged to 361.11% while six-month performance rose 126.78%. The stock gained 93.02% in the past year, while it has gained 75.85% so far this year. A look at the trailing 12-month EPS for GOTU yields 0.13 with Next year EPS estimates of 0.10.
Float and Shares Shorts:
At present, 258.77 million GOTU shares are outstanding with a float of 254.53 million shares on hand for trading. On Oct 13, 2022, short shares totaled 9.8 million, which was 3.79% higher than short shares on Sep 14, 2022. In addition to Mr. Xiangdong Chen as the firm’s Founder, Chairman & CEO, Ms. Nan Shen serves as its Chief Financial Officer.
Through their ownership of 15.08% of GOTU’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 3.60% of GOTU, in contrast to 17.61% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in GOTU with 4.86% of the stake, Goldman Sachs & Co. LLC holds 7,243,939 shares worth 7,243,939. A second-largest stockholder of GOTU, The Vanguard Group, Inc., holds 4,652,087 shares, controlling over 3.12% of the firm’s shares. Renaissance Technologies LLC is the third largest shareholder in GOTU, holding 4,579,689 shares or 3.07% stake. With a 1.35% stake in GOTU, the Vanguard Emerging Markets Stock I is the largest stakeholder. A total of 2,011,059 shares are owned by the mutual fund manager. The Vanguard Total International Stoc, which owns about 1.19% of GOTU stock, is the second-largest Mutual Fund holder. It holds 1,770,757 shares valued at 4.18 million. Vanguard FTSE All World holds 0.42% of the stake in GOTU, owning 629,192 shares worth 1.48 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for GOTU since 1 analysts follow the stock currently. There are 0 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With GOTU analysts setting a high price target of $9.06 and a low target of $9.06, the average target price over the next 12 months is $9.06. Based on these targets, GOTU could surge 118.31% to reach the target high and rise by 118.31% to reach the target low. Reaching the average price target will result in a growth of 118.31% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. GOTU will report FY 2022 earnings on 03/05/2024. Analysts have provided yearly estimates in a range of -$1.26 being high and -$1.26 being low. For GOTU, this leads to a yearly average estimate of -$1.26. Based on analyst estimates, the high estimate for the next quarter is -$2.14 and the low estimate is -$2.14. The average estimate for the next quarter is thus -$2.14.