New Oriental Education & Technology Group Inc. ADR (NYSE: EDU) has seen a decline in its stock price by -3.32 in relation to its previous close of 82.31. However, the company has experienced a -11.17% decline in its stock price over the last five trading sessions. Zacks Investment Research reported 2024-04-24 that New Oriental (EDU) could be a solid choice for shorter-term investors looking to capitalize on the recent price trend in fundamentally sound stocks. It is one of the many stocks that passed through our shorter-term trading strategy-based screen.
Is It Worth Investing in New Oriental Education & Technology Group Inc. ADR (NYSE: EDU) Right Now?
New Oriental Education & Technology Group Inc. ADR (NYSE: EDU) has a price-to-earnings ratio of 42.60x that is above its average ratio. Additionally, the 36-month beta value for EDU is 0.50. There are mixed opinions on the stock, with 15 analysts rating it as a “buy,” 8 rating it as “overweight,” 0 rating it as “hold,” and 2 rating it as “sell.”
The public float for EDU is 165.46M and currently, short sellers hold a 2.77% ratio of that float. The average trading volume of EDU on April 30, 2024 was 1.76M shares.
EDU’s Market Performance
The stock of New Oriental Education & Technology Group Inc. ADR (EDU) has seen a -11.17% decrease in the past week, with a -9.06% drop in the past month, and a 3.93% gain in the past quarter. The volatility ratio for the week is 6.21%, and the volatility levels for the past 30 days are at 3.59% for EDU. The simple moving average for the last 20 days is -6.60% for EDU stock, with a simple moving average of 11.30% for the last 200 days.
Analysts’ Opinion of EDU
Morgan Stanley, on the other hand, stated in their research note that they expect to see EDU reach a price target of $81. The rating they have provided for EDU stocks is “Overweight” according to the report published on November 07th, 2023.
EDU Trading at -10.60% from the 50-Day Moving Average
After a stumble in the market that brought EDU to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -18.96% of loss for the given period.
Volatility was left at 3.59%, however, over the last 30 days, the volatility rate increased by 6.21%, as shares sank -7.53% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -11.38% lower at present.
During the last 5 trading sessions, EDU fell by -11.05%, which changed the moving average for the period of 200-days by +74.57% in comparison to the 20-day moving average, which settled at $84.88. In addition, New Oriental Education & Technology Group Inc. ADR saw 8.60% in overturn over a single year, with a tendency to cut further gains.
Stock Fundamentals for EDU
Current profitability levels for the company are sitting at:
- 0.1 for the present operating margin
- 0.53 for the gross margin
The net margin for New Oriental Education & Technology Group Inc. ADR stands at 0.08. The total capital return value is set at 0.09. Equity return is now at value 8.20, with 4.67 for asset returns.
Based on New Oriental Education & Technology Group Inc. ADR (EDU), the company’s capital structure generated 0.05 points at debt to capital in total, while cash flow to debt ratio is standing at 6.06.
Currently, EBITDA for the company is 190.91 million with net debt to EBITDA at -4.13. When we switch over and look at the enterprise to sales, we see a ratio of 2.85. The receivables turnover for the company is 100.86for trailing twelve months and the total asset turnover is 0.56. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.95.
Conclusion
In conclusion, New Oriental Education & Technology Group Inc. ADR (EDU) has seen mixed performance in recent times. Analysts have a bearish opinion on the stock, with some rating it as a “sell” and others rating it as a “hold”. 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.
