Gaotu Techedu Inc ADR (GOTU) Shares Up Despite Recent Market Volatility

Gaotu Techedu Inc ADR (NYSE: GOTU) has seen a rise in its stock price by 1.59 in relation to its previous close of 5.03. However, the company has experienced a 4.71% gain in its stock price over the last five trading sessions. seekingalpha.com reported 2024-05-21 that Gaotu Techedu Inc. (NYSE:GOTU ) Q1 2024 Earnings Conference Call May 21, 2024 8:00 AM ET Company Participants Catherine Chen – Head of IR Larry Chen – Founder, Chairman and CEO Shannon Shen – CFO Conference Call Participants Alice Cai – Citi Research Jeffrey Chan – CLSA Operator Ladies and gentlemen, thank you for standing by and welcome to the Gaotu Techedu [Fourth Quarter and Fiscal Year 2023] (ph) Earnings Conference Call. All participants will be in listen-only mode.

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

Moreover, the 36-month beta value for GOTU is -0.00. Analysts have varying opinions on the stock, with 0 analysts rating it as a “buy,” 0 as “overweight,” 0 as “hold,” and 0 as “sell.”

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The public float for GOTU is 147.84M and currently, short sellers hold a 6.20% of that float. On June 18, 2024, GOTU’s average trading volume was 2.52M shares.

GOTU’s Market Performance

GOTU stock saw a decrease of 4.71% in the past week, with a monthly decline of -38.80% and a quarterly a decrease of -30.48%. The volatility ratio for the week is 5.93%, and the volatility levels for the last 30 days are 5.74% for Gaotu Techedu Inc ADR (GOTU). The simple moving average for the last 20 days is -11.58% for GOTU stock, with a simple moving average of 12.07% for the last 200 days.

Analysts’ Opinion of GOTU

Citigroup, on the other hand, stated in their research note that they expect to see GOTU reach a price target of $4.50. The rating they have provided for GOTU stocks is “Buy” according to the report published on January 03rd, 2024.

GOTU Trading at -20.61% 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 -39.42% of loss for the given period.

Volatility was left at 5.74%, however, over the last 30 days, the volatility rate increased by 5.93%, as shares sank -36.98% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -20.32% lower at present.

During the last 5 trading sessions, GOTU rose by +5.64%, which changed the moving average for the period of 200-days by +78.99% in comparison to the 20-day moving average, which settled at $5.63. In addition, Gaotu Techedu Inc ADR saw 41.16% 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:

  • -0.1 for the present operating margin
  • 0.72 for the gross margin

The net margin for Gaotu Techedu Inc ADR stands at -0.04. The total capital return value is set at -0.09. Equity return is now at value -4.04, with -2.54 for asset returns.

Based on Gaotu Techedu Inc ADR (GOTU), the company’s capital structure generated 0.08 points at debt to capital in total, while cash flow to debt ratio is standing at -4.84.

Currently, EBITDA for the company is -125.99 million with net debt to EBITDA at 2.68. When we switch over and look at the enterprise to sales, we see a ratio of 2.69. The receivables turnover for the company is 94.38for trailing twelve months and the total asset turnover is 0.6. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.94.

Conclusion

To wrap up, the performance of Gaotu Techedu Inc ADR (GOTU) has been mixed in recent times. The stock has received a mixed 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.

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