Gaotu Techedu (NYSE:GOTU) Stock Price Down 6% – Should You Sell?

Shares of Gaotu Techedu Inc. (NYSE:GOTU) were down 6% during mid-day trading on Monday . The company traded as low as $2.81 and last traded at $2.82. Approximately 1,983,928 shares were traded during mid-day trading, a decline of 42% from the average daily volume of 3,448,509 shares. The stock had previously closed at $3.00.

Analyst Upgrades and Downgrades

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

Gaotu Techedu Price Performance

The company has a market cap of $734.58 million, a PE ratio of -8.82 and a beta of 0.02. The stock has a fifty day moving average price of $3.21 and a 200-day moving average price of $4.64.

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

Institutional Investors Weigh In On Gaotu Techedu

Several institutional investors and hedge funds have recently modified their holdings of GOTU. Healthcare of Ontario Pension Plan Trust Fund boosted its holdings in shares of Gaotu Techedu by 97.8% in the first 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. Millennium Management LLC lifted its stake in Gaotu Techedu by 1,233.8% in the second quarter. Millennium Management LLC now owns 579,011 shares of the company’s stock worth $2,837,000 after acquiring an additional 535,601 shares during the period. BRIGHT VALLEY CAPITAL Ltd purchased a new stake in Gaotu Techedu in the second quarter worth about $2,450,000. National Bank of Canada FI purchased a new stake in shares of Gaotu Techedu during the second quarter valued at about $2,135,000. Finally, Seven Eight Capital LP acquired a new position in shares of Gaotu Techedu in the 1st quarter valued at $957,000. 48.42% of the stock is owned by hedge funds and other institutional investors.

About Gaotu Techedu

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.