Gaotu Techedu (NYSE:GOTU) Shares Gap Down – Should You Sell?

Gaotu Techedu Inc. (NYSE:GOTU)’s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $3.53, but opened at $3.40. Gaotu Techedu shares last traded at $3.37, with a volume of 425,375 shares.

Analysts Set New Price Targets

Separately, Citigroup cut Gaotu Techedu from a “buy” rating to a “sell” rating in a report on Tuesday, August 27th.

Gaotu Techedu Stock Performance

The firm has a market capitalization of $837.30 million, a price-to-earnings ratio of -40.50 and a beta of -0.01. The company has a fifty day moving average of $3.53 and a two-hundred day moving average of $5.05.

Gaotu Techedu (NYSE:GOTU) last announced its quarterly earnings data on Tuesday, August 27th. The company reported ($0.23) earnings per share for the quarter. The company had revenue of $138.95 million during the quarter. Gaotu Techedu had a negative net margin of 17.63% and a negative return on equity of 20.26%.

Hedge Funds Weigh In On Gaotu Techedu

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Goldman Sachs Group Inc. raised its holdings in shares of Gaotu Techedu by 2,548.9% during the 4th quarter. Goldman Sachs Group Inc. now owns 6,998,033 shares of the company’s stock worth $25,333,000 after buying an additional 6,733,849 shares in the last quarter. Healthcare of Ontario Pension Plan Trust Fund lifted its position in shares of Gaotu Techedu by 97.8% during the 1st quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 2,365,100 shares of the company’s stock worth $15,491,000 after buying an additional 1,169,300 shares during the last quarter. BNP Paribas Financial Markets bought a new stake in shares of Gaotu Techedu during the 1st quarter worth $6,360,000. Millennium Management LLC lifted its position in shares of Gaotu Techedu by 1,233.8% during the 2nd quarter. Millennium Management LLC now owns 579,011 shares of the company’s stock worth $2,837,000 after buying an additional 535,601 shares during the last quarter. Finally, BRIGHT VALLEY CAPITAL Ltd bought a new stake in shares of Gaotu Techedu during the 2nd quarter worth $2,450,000. 48.42% of the stock is owned by institutional investors and hedge funds.

Gaotu Techedu Company Profile

Gaotu Techedu Inc, a technology-driven education company, provides learning services, educational content, and digitalized learning products in the People's Republic of China. The company offers traditional online academic subject tutoring services that covers academic subjects, such as mathematics, English, Chinese, physics, chemistry, biology, history, geography, and political science for students; non-academic tutoring services; personal interest courses comprising chess learning, family relationships and education, humanities, and science courses; and professional courses primarily for college students and adults preparing for professional qualification exams, such as teacher's qualification, Chartered Financial Analyst designation, Certified Public Accountant designation, and other exams.