New Oriental Education & Technology Group Inc. (NYSE: EDU) stock fell -0.19% on Monday to $57.17 against a previous-day closing price of $57.28. With 1.31 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.61 million shares. During the session, the Education & Training Services company that operates in wider Consumer Defensive sector, reached to the highest price of $57.56 whereas the lowest price it dropped to was $56.38. The 52-week range on EDU shows that it touched its highest point at $60.19 and its lowest point at $17.01 during that stretch. It currently has a 1-year price target of $62.96. Beta for the stock currently stands at 0.68.
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 -0.83%, but this was up by 10.20% over a month. Three-month performance surged to 35.15% while six-month performance rose 61.18%. The stock gained 122.45% in the past year, while it has gained 64.19% so far this year. A look at the trailing 12-month EPS for EDU yields 1.10 with Next year EPS estimates of 3.08. For the next quarter, that number is 0.80. This implies an EPS growth rate of 114.30% for this year and 33.90% for next year. EPS is expected to grow by 0.29% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -11.90%.
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 Aug 30, 2023, short shares totaled 2.87 million, which was 1.69% higher than short shares on Jul 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 45.10% of EDU’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 30.60% of EDU, in contrast to 10.56% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in EDU with 2.56% of the stake, Greenwoods Investments SG Pte Ltd holds 4,351,294 shares worth 4,351,294. A second-largest stockholder of EDU, Alkeon Capital Management LLC, holds 4,300,581 shares, controlling over 2.53% of the firm’s shares. The Baupost Group LLC is the third largest shareholder in EDU, holding 4,118,784 shares or 2.42% stake. With a 1.22% stake in EDU, the ACAP Strategic Fund is the largest stakeholder. A total of 2,075,589 shares are owned by the mutual fund manager. The Fidelity Inv. Trust – Emerging Ma, which owns about 1.05% of EDU stock, is the second-largest Mutual Fund holder. It holds 1,780,308 shares valued at 96.56 million. R Valor Fund holds 0.75% of the stake in EDU, owning 1,267,896 shares worth 68.77 million.
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 $85.00 and a low target of $42.00, the average target price over the next 12 months is $63.00. Based on these targets, EDU could surge 48.68% to reach the target high and fall by -26.53% to reach the target low. Reaching the average price target will result in a growth of 10.2% 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.