Gaotu Techedu Inc. (NYSE:GOTU) Sees Significant Growth in Short Interest

Gaotu Techedu Inc. (NYSE:GOTU) was the recipient of a large growth in short interest in September. As of September 30th, there was short interest totalling 9,660,000 shares, a growth of 7.6% from the September 15th total of 8,980,000 shares. Currently, 6.5% of the shares of the stock are short sold. Based on an average trading volume of 2,570,000 shares, the days-to-cover ratio is currently 3.8 days.

Institutional Investors Weigh In On Gaotu Techedu

Several hedge funds have recently modified their holdings of the stock. Headlands Technologies LLC acquired a new position in Gaotu Techedu during the first quarter valued at approximately $63,000. Mirae Asset Global Investments Co. Ltd. acquired a new position in Gaotu Techedu during the first quarter valued at approximately $99,000. SG Americas Securities LLC acquired a new position in Gaotu Techedu during the second quarter valued at approximately $75,000. Virtu Financial LLC acquired a new position in Gaotu Techedu during the first quarter valued at approximately $133,000. Finally, Marshall Wace LLP lifted its position in Gaotu Techedu by 158.2% during the second quarter. Marshall Wace LLP now owns 77,562 shares of the company’s stock valued at $380,000 after buying an additional 47,522 shares in the last quarter. 48.42% of the stock is owned by institutional investors and hedge funds.

Gaotu Techedu Price Performance

Shares of NYSE GOTU remained flat at $3.24 during midday trading on Wednesday. 1,248,282 shares of the stock were exchanged, compared to its average volume of 3,613,406. The stock has a market capitalization of $837.30 million, a P/E ratio of -40.50 and a beta of -0.01. Gaotu Techedu has a 1-year low of $2.22 and a 1-year high of $8.44. The stock’s 50-day simple moving average is $3.55 and its 200 day simple moving average is $5.07.

Gaotu Techedu (NYSE:GOTU) last issued its quarterly 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 firm had revenue of $138.95 million for the quarter.

Analysts Set New Price Targets

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

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.