New Oriental Education & Technology Group Inc. ADR (EDU) Shares Plummet Below 1-Year High

The stock of New Oriental Education & Technology Group Inc. ADR (NYSE: EDU) has decreased by -2.00 when compared to last closing price of 68.00.Despite this, the company has seen a loss of -4.25% in its stock price over the last five trading days. gurufocus.com reported 2024-10-09 that New Oriental (EDU, Financial) shares dropped by 1.87% in pre-market trading, priced at $74.36. Macquarie has revised its forecast for New Oriental’s non-GAAP net profit for fiscal years 2025 to 2027, reducing it by 11.6% to 13.3%.

Is It Worth Investing in New Oriental Education & Technology Group Inc. ADR (NYSE: EDU) Right Now?

The price-to-earnings ratio for New Oriental Education & Technology Group Inc. ADR (NYSE: EDU) is above average at 35.91x, Company’s 36-month beta value is 0.46.Analysts have differing opinions on the stock, with 15 analysts rating it as a “buy,” 8 as “overweight,” 0 as “hold,” and 2 as “sell.”

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The public float for EDU is 160.26M, and currently, short sellers hold a 3.83% ratio of that floaft. The average trading volume of EDU on October 22, 2024 was 2.29M shares.

EDU’s Market Performance

The stock of New Oriental Education & Technology Group Inc. ADR (EDU) has seen a -4.25% decrease in the past week, with a 10.61% rise in the past month, and a -9.53% fall in the past quarter. The volatility ratio for the week is 2.98%, and the volatility levels for the past 30 days are at 4.92% for EDU. The simple moving average for the last 20 days is -9.01% for EDU’s stock, with a simple moving average of -13.72% for the last 200 days.

Analysts’ Opinion of EDU

Many brokerage firms have already submitted their reports for EDU stocks, with HSBC Securities repeating the rating for EDU by listing it as a “Buy.” The predicted price for EDU in the upcoming period, according to HSBC Securities is $110 based on the research report published on May 29, 2024 of the current year 2024.

Morgan Stanley gave a rating of “Overweight” to EDU, setting the target price at $81 in the report published on November 07th of the previous year.

EDU Trading at -1.01% 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 -31.46% of loss for the given period.

Volatility was left at 4.92%, however, over the last 30 days, the volatility rate increased by 2.98%, as shares surge +2.46% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -4.68% lower at present.

During the last 5 trading sessions, EDU fell by -4.31%, which changed the moving average for the period of 200-days by -13.19% in comparison to the 20-day moving average, which settled at $73.23. In addition, New Oriental Education & Technology Group Inc. ADR saw -8.15% in overturn over a single year, with a tendency to cut further losses.

Stock Fundamentals for EDU

Current profitability levels for the company are sitting at:

  • 0.08 for the present operating margin
  • 0.52 for the gross margin

The net margin for New Oriental Education & Technology Group Inc. ADR stands at 0.07. The total capital return value is set at 0.08. Equity return is now at value 8.39, with 4.45 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 5.24.

Currently, EBITDA for the company is 611.76 million with net debt to EBITDA at -1.79. When we switch over and look at the enterprise to sales, we see a ratio of 2.32. The receivables turnover for the company is 126.53for trailing twelve months and the total asset turnover is 0.57. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.80.

Conclusion

In a nutshell, New Oriental Education & Technology Group Inc. ADR (EDU) has experienced a mixed performance in recent times. The stock has received mixed “sell” 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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