An In-Depth Look at Gaotu Techedu Inc ADR’s (GOTU) Stock Performance

The stock of Gaotu Techedu Inc ADR (GOTU) has seen a -6.74% decrease in the past week, with a -16.01% drop in the past month, and a -2.36% decrease in the past quarter. The volatility ratio for the week is 6.61%, and the volatility levels for the past 30 days are at 5.44% for GOTU. The simple moving average for the past 20 days is 1.47% for GOTU’s stock, with a -45.00% simple moving average for the past 200 days.

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

Moreover, the 36-month beta value for GOTU is -0.03. Analysts have varying opinions on the stock, with 5 analysts rating it as a “buy,” 1 as “overweight,” 2 as “hold,” and 1 as “sell.”

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The public float for GOTU is 144.29M and currently, short sellers hold a 5.98% of that float. On December 09, 2024, GOTU’s average trading volume was 2.56M shares.

GOTU) stock’s latest price update

Gaotu Techedu Inc ADR (NYSE: GOTU)’s stock price has plunge by 11.30relation to previous closing price of 2.43. Nevertheless, the company has seen a -6.74% plunge in its stock price over the last five trading sessions. seekingalpha.com reported 2024-12-05 that Gaotu’s Q3 2024 revenue growth was robust at 53.1% YoY, but profitability declined due to heavy investments in workforce and marketing. Despite the stock’s 11% drop post-earnings, I maintain a “buy” rating due to Gaotu’s strong balance sheet and significant undervaluation. Management expects Q4 revenue growth of 69.2%-71.9% YoY, driven by aggressive offline expansion and diversified revenue streams.

Analysts’ Opinion of GOTU

Citigroup gave a rating of “Buy” to GOTU, setting the target price at $4.50 in the report published on January 03rd of the current year.

GOTU Trading at -12.66% 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 -67.94% of loss for the given period.

Volatility was left at 5.44%, however, over the last 30 days, the volatility rate increased by 6.61%, as shares sank -9.50% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -26.62% lower at present.

During the last 5 trading sessions, GOTU fell by -6.38%, which changed the moving average for the period of 200-days by -50.64% in comparison to the 20-day moving average, which settled at $2.67. In addition, Gaotu Techedu Inc ADR saw -25.29% in overturn over a single year, with a tendency to cut further losses.

Stock Fundamentals for GOTU

Current profitability levels for the company are sitting at:

  • -0.31 for the present operating margin
  • 0.68 for the gross margin

The net margin for Gaotu Techedu Inc ADR stands at -0.26. The total capital return value is set at -0.44. Equity return is now at value -38.48, with -20.31 for asset returns.

Currently, EBITDA for the company is -94.76 million with net debt to EBITDA at 0.25. When we switch over and look at the enterprise to sales, we see a ratio of 1.22. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.20.

Conclusion

To wrap up, the performance of Gaotu Techedu Inc ADR (GOTU) has been bad 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.

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