Gaotu Techedu (NYSE:GOTU) Shares Gap Up Following Better-Than-Expected Earnings

Gaotu Techedu Inc. (NYSE:GOTU)’s share price gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $2.53, but opened at $2.80. Gaotu Techedu shares last traded at $3.17, with a volume of 4,975,926 shares trading hands.

The company reported ($0.07) EPS for the quarter, beating the consensus estimate of ($0.08) by $0.01. Gaotu Techedu had a negative return on equity of 37.79% and a negative net margin of 26.36%.

Institutional Investors Weigh In On Gaotu Techedu

Several institutional investors have recently added to or reduced their stakes in the business. Norges Bank acquired a new stake in Gaotu Techedu during the fourth quarter worth approximately $3,583,000. Marshall Wace LLP acquired a new stake in Gaotu Techedu during the 4th quarter worth $781,000. Point72 Asset Management L.P. purchased a new stake in Gaotu Techedu in the fourth quarter valued at $343,000. Barclays PLC boosted its stake in Gaotu Techedu by 195.8% in the fourth quarter. Barclays PLC now owns 215,982 shares of the company’s stock valued at $473,000 after acquiring an additional 142,974 shares in the last quarter. Finally, JPMorgan Chase & Co. grew its holdings in shares of Gaotu Techedu by 14.9% during the third quarter. JPMorgan Chase & Co. now owns 832,996 shares of the company’s stock worth $3,265,000 after purchasing an additional 108,224 shares during the last quarter. Hedge funds and other institutional investors own 48.42% of the company’s stock.

Gaotu Techedu Price Performance

The firm has a market cap of $811.68 million, a price-to-earnings ratio of -5.52 and a beta of 0.06. The stock has a 50-day moving average price of $2.28 and a 200 day moving average price of $2.85.

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.