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Gaotu Techedu Inc. (GOTU) Shares Down Despite Recent Market Volatility

The stock price of Gaotu Techedu Inc. (NYSE: GOTU) has dropped by -5.90 compared to previous close of 2.88. Despite this, the company has seen a fall of -12.01% in its stock price over the last five trading days. The Wall Street Journal reported on 02/22/22 that Chinese Tutoring Companies Take Big Financial Hit Amid Crackdown

Is It Worth Investing in Gaotu Techedu Inc. (NYSE: GOTU) Right Now?

The price-to-earnings ratio for Gaotu Techedu Inc. (NYSE: GOTU) is 677.50x, which is above its average ratio. Moreover, the 36-month beta value for GOTU is -0.73. Analysts have varying opinions on the stock, with 1 analysts rating it as a “buy,” 1 as “overweight,” 0 as “hold,” and 0 as “sell.”

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The average price recommended by analysts for Gaotu Techedu Inc. (GOTU) is $30.82, which is $1.07 above the current market price. The public float for GOTU is 251.17M and currently, short sellers hold a 3.86% of that float. On May 25, 2023, GOTU’s average trading volume was 3.43M shares.

GOTU’s Market Performance

GOTU stock saw a decrease of -12.01% in the past week, with a monthly decline of -12.30% and a quarterly a decrease of -19.35%. The volatility ratio for the week is 6.37%, and the volatility levels for the last 30 days are 6.59% for Gaotu Techedu Inc. (GOTU). The simple moving average for the past 20 days is -10.18% for GOTU’s stock, with a 6.49% simple moving average for the past 200 days.

GOTU Trading at -23.37% from the 50-Day Moving Average

After a stumble in the market that brought GOTU to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -50.64% of loss for the given period.

Volatility was left at 6.59%, however, over the last 30 days, the volatility rate increased by 6.37%, as shares sank -12.86% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -37.56% lower at present.

During the last 5 trading sessions, GOTU fell by -12.01%, which changed the moving average for the period of 200-days by +68.32% in comparison to the 20-day moving average, which settled at $3.00. In addition, Gaotu Techedu Inc. saw 14.83% in overturn over a single year, with a tendency to cut further gains.

Stock Fundamentals for GOTU

Current profitability levels for the company are sitting at:

  • -4.73 for the present operating margin
  • +71.94 for the gross margin

The net margin for Gaotu Techedu Inc. stands at +0.53. The total capital return value is set at -3.63, while invested capital returns managed to touch 0.41. Equity return is now at value 0.40, with 0.30 for asset returns.

Based on Gaotu Techedu Inc. (GOTU), the company’s capital structure generated 2.67 points at debt to equity in total, while total debt to capital is 2.60. Total debt to assets is 1.69, with long-term debt to equity ratio resting at 1.43. Finally, the long-term debt to capital ratio is 1.39.

When we switch over and look at the enterprise to sales, we see a ratio of -0.26, with the company’s debt to enterprise value settled at 0.12. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.59.


To wrap up, the performance of Gaotu Techedu Inc. (GOTU) has been mixed in recent times. The stock has received a bullish of “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.