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

The stock price of Gaotu Techedu Inc ADR (NYSE: GOTU) has dropped by -3.54 compared to previous close of 3.25. Despite this, the company has seen a fall of -0.48% in its stock price over the last five trading days. prnewswire.com reported 2025-03-11 that BEIJING, March 11, 2025 /PRNewswire/ — Gaotu Techedu Inc. (NYSE: GOTU) (“Gaotu” or the “Company”), a technology-driven education company and online large-class tutoring service provider in China, today announced that it expects a meaningful reduction in its non-GAAP operating loss for 2025 compared to 2024. The Company’s 2025 financial projections reflect anticipated cost and expense trends, including, among others, the impact of lease commitments, ensuring a well-measured outlook for business growth across both online and offline operations.

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

The stock has a 36-month beta value of 0.17. Opinions on the stock are mixed, with 4 analysts rating it as a “buy,” 2 as “overweight,” 2 as “hold,” and 1 as “sell.”

The public float for GOTU is 144.29M, and at present, short sellers hold a 4.14% of that float. On April 01, 2025, the average trading volume of GOTU was 2.80M shares.

GOTU’s Market Performance

GOTU stock saw a decrease of -0.48% in the past week, with a monthly decline of -8.06% and a quarterly a decrease of 39.96%. The volatility ratio for the week is 5.12%, and the volatility levels for the last 30 days are 7.48% for Gaotu Techedu Inc ADR (GOTU). The simple moving average for the last 20 days is -10.17% for GOTU’s stock, with a simple moving average of -6.65% for the last 200 days.

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 previous year.

GOTU Trading at 7.08% 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 -62.83% of loss for the given period.

Volatility was left at 7.48%, however, over the last 30 days, the volatility rate increased by 5.12%, as shares sank -8.50% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +49.28% upper at present.

During the last 5 trading sessions, GOTU fell by -0.95%, which changed the moving average for the period of 200-days by -35.27% in comparison to the 20-day moving average, which settled at $3.49. In addition, Gaotu Techedu Inc ADR saw 43.15% 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:

  • -0.26 for the present operating margin
  • 0.68 for the gross margin

The net margin for Gaotu Techedu Inc ADR stands at -0.23. The total capital return value is set at -0.46. Equity return is now at value -41.45, with -18.65 for asset returns.

Currently, EBITDA for the company is -1.13 billion with net debt to EBITDA at 0.72. When we switch over and look at the enterprise to sales, we see a ratio of 1.73. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.12.

Conclusion

To sum up, Gaotu Techedu Inc ADR (GOTU) has seen a mixed performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others 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.

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