New Oriental Education & Technology Group Inc. (NYSE:EDU) finished Thursday with an addition of $0.77 to close at $54.32, an upside of 1.44 percent. An average of 1,866,920 shares of common stock have been traded in the last five days. There was a fall of -$2.21 in the past week, and it reached a new high 28 times over the past 12 months. The last 20 days have seen an average of 2,049,965 shares traded, while the 50-day average volume stands at 1,687,448.
EDU stock has increased by 17.73% in the last month. The company shares reached their 1-month lowest point of $43.65 on 07/18/23. With the stock rallying to its 52-week high on 08/04/23, shares of the company touched a low of $17.01 and a high of $57.94 in 52 weeks. It has reached a new high 18 times so far this year and achieved 56.00% or $19.50 in price. In spite of this, the price is down -6.25% from the 52-week high.
Valuation Metrics
New Oriental Education & Technology Group Inc. (EDU) has a trailing price-to-earnings (P/E) ratio of 49.20. The stock’s beta is 0.69. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 3.03, the price-to-book (PB) ratio at 2.18, and the price-to-cash flow ratio at 9.34.
Financial Health
The quick ratio of New Oriental Education & Technology Group Inc. for the three months ended May 30 was 1.90, and the current ratio was 2.00, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.00 and a total debt to equity ratio of 0.00 for the quarter ending May 30. Its gross profit as reported stood at $1.35 billion compared to revenue of $3.11 billion.
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 2.90%.
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. In the quarter under review, the net income was up than the previous quarter. 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 $0.51 per share, but it turned out to be $0.37, a -27.50% surprise. For the quarter, EBITDA amounted to $66.49 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 10 August was 58.73%, suggesting the stock is Neutral, with historical volatility in this time frame at 47.76%.
As of today, EDU’s price is $54.73 -3.91% or -$2.21 from its 5-day moving average. EDU is currently trading +17.27% higher than its 20-day SMA and +53.14% higher than its 100-day SMA. However, the stock’s current price level is +44.81% above the SMA50 and +138.35% above the SMA200.
The stochastic %K and %D were 61.19% and 69.22%, respectively, and the average true range (ATR) was 2.47. With the 14-day stochastic at 65.19% and the average true range at 2.33, the RSI (14) stands at 61.95%. The stock has reached -1.70 on the 9-day MACD Oscillator while the 14-day reading was at -0.50.
Analyst Ratings
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 1 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 15 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 $50.00 and $85.00, with a median target of $64.00. Taking a look at these predictions, the average price target given by analysts for New Oriental Education & Technology Group Inc. (EDU) stock is $63.30.
