The stock of Gaotu Techedu Inc. (NYSE:GOTU) increased by $0.25 on Monday to $3.37, up 7.85 percent. The last five days have seen an average of 1,859,643 shares of common stock traded. 10 times new highs were reached in the current year, with a gain of $0.96. The average number of shares traded over the last 20 days was 2,137,966, while the average volume over the last 50 days totaled 2,065,280.
GOTU stock dropped -23.87% since last month. On 08/18/23, the company’s shares reached a one-month low of $2.81. The stock touched a high of $5.49 on 03/07/23, after rallying from a low of $0.64 in 52 weeks. The price of GOTU stock has risen by 42.58% or $0.96 this year, reaching a new high 10 times. Still, the stock price is down -38.71% from the 52-week high.
Valuation Metrics
Gaotu Techedu Inc. (GOTU) has a trailing price-to-earnings (P/E) ratio of 101.97. Beta for the stock is -0.48. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 2.55, the price-to-book (PB) ratio of 1.97.
Financial Health
For the three months ended December 30, Gaotu Techedu Inc.’s quick ratio was 3.00, while its current ratio was 3.10, indicating its ability to pay off its debt. As far as profitability goes, gross margin for the trailing twelve months is 73.90% percent. Gaotu Techedu Inc.’s EBITDA margin for the year ended December 30 was -1.93%, whereas its operating margin stood at -1.90% for the same period. Based on annual data, it had gross profit of $260.56 million and revenue of $362.21 million.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. GOTU’s return on assets (ROA) during the last 12 months has been 1.60%. There was a -3.30% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 2.40%.
Earnings Surprise
According to Gaotu Techedu Inc.’s quarterly financial report for the quarter that ended December 30. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $362.21 million, while revenues fell by -184.28% to $0.0. It was predicted that Gaotu Techedu Inc.’s quarterly earnings would be $0.18, but it ended up being $0.24, beating the consensus by -25.00%. EBITDA was $13.85 million for the quarter. At the end of Gaotu Techedu Inc.’s most recent quarter ended December 30, its liabilities totaled 229.88 million, while its total debt was $117.3 million.
Technical Picture
Here’s a quick look at Gaotu Techedu Inc.’s (GOTU) price momentum from a technical perspective. As of 25 August, the RSI 9-day stood at 55.37%, suggesting the stock is Neutral, with a 65.74% historical volatility rate.
The stochastic %K and %D were 42.55% and 32.84% respectively, while the average true range (ATR) was 0.21. Based on the 14-day stochastic reading of 61.45%, the RSI (14) reading is 51.52%. On the 9-day MACD Oscillator, the stock is at 0.11, and the 14-day reading is at 0.03.
Analyst Ratings
In its most recent analyst report, CLSA raised its rating on Gaotu Techedu Inc. (NYSE: GOTU) to an Outperform. Prior to this, analysts firm rated the stock as an Underperform. Analysts have assigned Gaotu Techedu Inc. (GOTU) an Overweight rating. GOTU is a stock that is recommended for selling by 1 brokerage firm, while 0 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 1 rate it overweight and 2 others recommend it as a buy.
What is GOTU’s price target for the next 12 months?
The current consensus forecast for the stock is between $9.41 and $46.69, with a median target price of $29.69. In analyzing these forecasts, the average price target given by analysts for Gaotu Techedu Inc. (GOTU) is $28.87.
