New Oriental Education & Technology Group Inc. (NYSE: EDU) stock fell -1.02% on Tuesday to $37.67 against a previous-day closing price of $38.06. With 1.08 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.86 million shares. During the session, the Education & Training Services company that operates in wider Consumer Defensive sector, reached to the highest price of $38.19 whereas the lowest price it dropped to was $37.48. The 52-week range on EDU shows that it touched its highest point at $46.74 and its lowest point at $10.71 during that stretch. It currently has a 1-year price target of $53.31. Beta for the stock currently stands at 0.62.
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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 EDU was down-trending over the past week, with a drop of -4.63%, but this was down by -12.82% over a month. Three-month performance dropped to -11.26% while six-month performance rose 29.54%. The stock gained 201.84% in the past year, while it has gained 8.18% so far this year. A look at the trailing 12-month EPS for EDU yields -0.20 with Next year EPS estimates of 2.21. For the next quarter, that number is 0.20. This implies an EPS growth rate of -445.90% for this year and 41.70% for next year. EPS is expected to grow by 14.81% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -19.20%.
Float and Shares Shorts:
At present, 169.70 million EDU shares are outstanding with a float of 166.44 million shares on hand for trading. On Apr 27, 2023, short shares totaled 4.56 million, which was 2.69% higher than short shares on Mar 30, 2023. In addition to Mr. Minhong Yu as the firm’s Founder & Exec. Chairman, Mr. Chenggang Zhou serves as its CEO & Director.
Through their ownership of 41.51% of EDU’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 7.56% of EDU, in contrast to 34.17% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in EDU with 3.19% of the stake, The Baupost Group LLC holds 5,418,784 shares worth 5,418,784. A second-largest stockholder of EDU, Keywise Capital Management, holds 3,972,640 shares, controlling over 2.34% of the firm’s shares. Yiheng Capital Management LP is the third largest shareholder in EDU, holding 3,942,372 shares or 2.32% stake. With a 0.75% stake in EDU, the R Valor is the largest stakeholder. A total of 1,267,896 shares are owned by the mutual fund manager. The Fidelity Inv. Trust – Emerging Ma, which owns about 0.73% of EDU stock, is the second-largest Mutual Fund holder. It holds 1,246,430 shares valued at 56.82 million. ACAP Strategic Fund holds 0.56% of the stake in EDU, owning 945,143 shares worth 43.09 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Feb 27, 2023, EDU reported revenue of $524.02M and operating income of -$105.65M. The EBITDA in the recently reported quarter was -$103.97M and diluted EPS was -$1.10.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for EDU since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With EDU analysts setting a high price target of $70.00 and a low target of $38.00, the average target price over the next 12 months is $55.10. Based on these targets, EDU could surge 85.82% to reach the target high and rise by 0.88% to reach the target low. Reaching the average price target will result in a growth of 46.27% 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.