Two Sigma Advisers LP Makes New Investment in Gaotu Techedu Inc. (NYSE:GOTU)

Two Sigma Advisers LP acquired a new stake in Gaotu Techedu Inc. (NYSE:GOTU) in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund acquired 18,800 shares of the company’s stock, valued at approximately $41,000.

A number of other hedge funds and other institutional investors have also made changes to their positions in GOTU. Catalyst Funds Management Pty Ltd acquired a new position in shares of Gaotu Techedu in the 4th quarter valued at $38,000. Two Sigma Securities LLC purchased a new position in shares of Gaotu Techedu in the 4th quarter worth $86,000. Lighthouse Investment Partners LLC acquired a new position in Gaotu Techedu in the fourth quarter valued at $103,000. Barclays PLC grew its position in Gaotu Techedu by 195.8% during 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 during the period. Finally, Point72 Asset Management L.P. purchased a new stake in Gaotu Techedu during the fourth quarter valued at about $343,000. Hedge funds and other institutional investors own 48.42% of the company’s stock.

Gaotu Techedu Price Performance

Gaotu Techedu stock opened at $4.00 on Monday. The company has a market cap of $1.01 billion, a price-to-earnings ratio of -7.02 and a beta of 0.42. Gaotu Techedu Inc. has a 12 month low of $1.87 and a 12 month high of $5.80. The stock’s 50-day moving average is $3.27 and its 200-day moving average is $2.88.

Gaotu Techedu (NYSE:GOTU) last posted its earnings results on Thursday, May 15th. The company reported $0.07 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.05) by $0.12. The firm had revenue of $28.53 million during the quarter, compared to the consensus estimate of $189.76 million. Gaotu Techedu had a negative net margin of 26.36% and a negative return on equity of 37.79%.

Gaotu Techedu declared that its board has authorized a stock buyback plan on Thursday, May 15th that allows the company to buyback $0.00 in outstanding shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.

Gaotu Techedu 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.