At the last check on Thursday, Gaotu Techedu Inc.’s (NYSE:GOTU) stock was down -$0.04, moving down -1.41 percent to $2.44. The average number of shares traded per day over the past five days has been 1,104,348 shares. 2 times new highs have been achieved over the past 5 days, with a -$0.14 fall in that time frame. In the last twenty days, the average volume was 2,937,112, while in the previous 50 days, it was 2,580,605.
Since last month, GOTU stock retreated -17.68%. Shares of the company fell to $2.39 on 09/21/23, the lowest level in the past month. A 52-week high of $5.49 was reached on 03/07/23 after having rallying from a 52-week low of $0.64. Since the beginning of this year, GOTU’s stock price has risen by 3.60% or $0.11, and marked a new high 10 times. However, the stock has declined by -55.46% since its 52-week high.
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Valuation Metrics
Right now, Gaotu Techedu Inc. (GOTU) has a P/E ratio of about 74.09. The stock’s beta is -0.47. Besides these, the trailing price-to-sales (P/S) ratio of 1.89, the price-to-book (PB) ratio of 1.43.
Financial Health
In the three months ended December 30, Gaotu Techedu Inc.’s quick ratio stood at 3.00, while its current ratio was 3.10, showing that the company is able to pay off its debt. On the profitability front, the trailing twelve-month gross margin is 73.90% percent. In the year ended December 30, EBITDA margin amounted to -1.93%, whereas operating margins totaled -1.90%. Based on annual data, GOTU earned $260.56 million in gross profit and brought in $362.21 million in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -3.30%. Return on equity (ROE) for the past 12 months was 2.40%.
According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. GOTU’s revenue fell -184.28% during the quarter, while net income inched up to $362.21 million. While analysts expected Gaotu Techedu Inc. to report $0.24 quarterly earnings, the actual figure was $0.18 per share, beating the consensus estimate by -25.00%. During the quarter, the company generated $5.97 million in EBITDA. The liabilities of Gaotu Techedu Inc. were 230.51 million at the end of its most recent quarter ended December 30, and its total debt was $85.47 million.
Technical Picture
This quick technical analysis looks at Gaotu Techedu Inc.’s (GOTU) price momentum. With a historical volatility rate of 33.88%, the RSI 9-day stood at 29.19% on 20 September.
With respect to its five-day moving average, the current Gaotu Techedu Inc. price is down by -5.56% percent or -$0.14. At present, GOTU shares trade -21.50% below its 20-day simple moving average and -24.85% percent below its 100-day simple moving average. However, the stock is currently trading approximately -27.29% below its SMA50 and +76.07% above its SMA200.
Stochastic coefficient K was 7.05% and Stochastic coefficient D was 7.63%, while ATR was 0.14. Given the Stochastic reading of 10.07% for the 14-day period, the RSI (14) reading has been calculated as 33.99%. As of today, the MACD Oscillator reading stands at -0.05, while the 14-day reading stands at -0.13.
Analyst Ratings
Gaotu Techedu Inc. downgraded its rating on Gaotu Techedu Inc. (NYSE: GOTU) to an Underperform in a note to investors on August 31, 2023. The analysts firm previously had an Outperform rating on the stock.Gaotu Techedu Inc. (GOTU) has been rated Hold by analysts. According to 1 brokerage firm, GOTU is a sell, and 0 firms recommend it is a Hold. There are 1 analyst who say the stock is underweight. A total of 0 analysts rate Gaotu Techedu Inc. stock as buy, with 2 recommending it as overweight.
With a median target price of $29.10, the current consensus forecast for the stock is $9.41 – $45.21. Based on these forecasts, analysts predict Gaotu Techedu Inc. (GOTU) will achieve an average price target of $28.20.
