The stock price of Gaotu Techedu Inc ADR (NYSE: GOTU) has plunged by -0.26 when compared to previous closing price of 3.81, seekingalpha.com reported 2025-05-20 that I’m upgrading Gaotu Techedu to a Buy following an assessment of its results and prospects. GOTU outperformed peers with 58% YoY revenue growth in 1Q, driven by K-12 segment strength and effective cost controls; its quarterly earnings also came in above consensus forecasts. Management expects operating cash flow to triple in FY25, supporting both reinvestments and a new $100M buyback plan.
Is It Worth Investing in Gaotu Techedu Inc ADR (NYSE: GOTU) Right Now?
The 36-month beta value for GOTU is at 0.42. Analysts have varying views on the stock, with 4 analysts rating it as a “buy,” 2 rating it as “overweight,” 2 as “hold,” and 1 as “sell.”
The public float for GOTU is 132.92M, and currently, shorts hold a 4.93% of that float. The average trading volume for GOTU on May 22, 2025 was 2.51M shares.
GOTU’s Market Performance
GOTU’s stock has seen a 0.00% decrease for the week, with a 41.26% rise in the past month and a 47.86% gain in the past quarter. The volatility ratio for the week is 7.30%, and the volatility levels for the past 30 days are at 5.36% for Gaotu Techedu Inc ADR The simple moving average for the past 20 days is 10.61% for GOTU’s stock, with a 25.24% simple moving average for the past 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 17.43% 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 -48.99% of loss for the given period.
Volatility was left at 5.36%, however, over the last 30 days, the volatility rate increased by 7.30%, as shares surge +32.40% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +6.15% upper at present.
During the last 5 trading sessions, GOTU remain unchanged, which changed the moving average for the period of 200-days by -5.00% in comparison to the 20-day moving average, which settled at $3.44. In addition, Gaotu Techedu Inc ADR saw 73.52% 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 -36.29, with -17.47 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 2.05. The receivables turnover for the company is 30.67for trailing twelve months and the total asset turnover is 0.78. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.11.
Conclusion
In conclusion, Gaotu Techedu Inc ADR (GOTU) has had a better performance lately. Opinion on the stock among analysts is bullish, with some giving it a “buy” rating and others 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.
