How New Oriental Education & Technology Group Inc. (EDU) Works From A Technical Perspective

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New Oriental Education & Technology Group Inc. (NYSE:EDU) finished Wednesday with a subtraction of -$1.25 to close at $22.05, a downside of -5.36 percent. An average of 1,942,440 shares of common stock have been traded in the last five days. There was a fall of -$2.74 in the past week, and it reached a new high 16 times over the past 12 months. The last 20 days have seen an average of 1,792,935 shares traded, while the 50-day average volume stands at 2,319,666.

EDU stock has decreased by -9.26% in the last month. The company shares reached their 1-month lowest point of $22.00 on 09/21/22. With the stock rallying to its 52-week high on 08/31/22, shares of the company touched a low of $8.40 and a high of $29.80 in 52 weeks. It has reached a new high 8 times so far this year and achieved 5.00% or $1.05 in price. In spite of this, the price is down -26.01% from the 52-week high.


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Valuation Metrics

New Oriental Education & Technology Group Inc. (EDU) stock’s beta is 0.53. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.27, the price-to-book (PB) ratio at 1.02.

Financial Health

The quick ratio of New Oriental Education & Technology Group Inc. for the three months ended May 30 was 2.60, and the current ratio was 2.60, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.02 and a total debt to equity ratio of 0.02 for the quarter ending May 30. Its gross profit as reported stood at $276.2 million compared to revenue of $524.02 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, New Oriental Education & Technology Group Inc.’s return on assets was -15.60%.

Earnings Surprise

For the three-month period that ended May 30, New Oriental Education & Technology Group Inc. had $4.65 billion in cash and short-term investments compared to $297.63 million in total debt. The company posted a net income of $334.41 million in the quarter, while revenues were shrunk -23.6%. The analyst consensus anticipated New Oriental Education & Technology Group Inc.’s latest quarter earnings to come in at -$0.44 per share, but it turned out to be -$0.94, a -113.60% surprise. For the quarter, EBITDA amounted to -$141.19 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at New Oriental Education & Technology Group Inc. (EDU) price momentum. RSI 9-day as of the close on 21 September was 24.22%, suggesting the stock is oversold, with historical volatility in this time frame at 54.16%.

As of today, EDU’s price is $23.88 -11.05% or -$2.74 from its 5-day moving average. EDU is currently trading -14.57% lower than its 20-day SMA and +96.00% higher than its 100-day SMA. However, the stock’s current price level is +2.85% above the SMA50 and +17.91% above the SMA200.

The stochastic %K and %D were 5.39% and 7.89%, respectively, and the average true range (ATR) was 1.36. With the 14-day stochastic at 0.76% and the average true range at 1.42, the RSI (14) stands at 32.84%. The stock has reached -1.84 on the 9-day MACD Oscillator while the 14-day reading was at -2.45.

Analyst Ratings

BofA Securities upgraded New Oriental Education & Technology Group Inc. (NYSE: EDU) to a a Buy rating in its most recent analyst report. Previously, the stock was rated as a Neutral. The consensus rating for New Oriental Education & Technology Group Inc. (EDU) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell EDU, while 2 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 14 others rate it as a “buy”.

What is EDU’s price target for the next 12 months?

Analysts predict a range of price targets between $24.00 and $54.00, with a median target of $33.48. Taking a look at these predictions, the average price target given by analysts for New Oriental Education & Technology Group Inc. (EDU) stock is $34.09.

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