Gaotu Techedu (NYSE:GOTU) Shares Up 5.4% on Strong Earnings

Gaotu Techedu Inc. (NYSE:GOTU) shot up 5.4% during trading on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $3.74 and last traded at $3.84. 294,434 shares changed hands during mid-day trading, a decline of 83% from the average session volume of 1,723,471 shares. The stock had previously closed at $3.64.

The company reported ($0.12) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.16) by $0.04. Gaotu Techedu had a negative net margin of 12.97% and a negative return on equity of 35.90%. The company had revenue of $27.09 million during the quarter, compared to the consensus estimate of $182.85 million. Gaotu Techedu has set its Q3 2025 guidance at EPS.

Gaotu Techedu announced that its board has authorized a share repurchase plan on Thursday, May 15th that allows the company to repurchase $0.00 in shares. This repurchase authorization allows the company to purchase shares of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s management believes its shares are undervalued.

Institutional Investors Weigh In On Gaotu Techedu

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. PFG Investments LLC acquired a new position in Gaotu Techedu during the first quarter valued at approximately $76,000. Harvest Fund Management Co. Ltd raised its position in Gaotu Techedu by 116.1% during the first quarter. Harvest Fund Management Co. Ltd now owns 1,023,915 shares of the company’s stock valued at $3,317,000 after purchasing an additional 550,000 shares in the last quarter. Two Sigma Securities LLC acquired a new position in Gaotu Techedu during the fourth quarter valued at approximately $86,000. Virtu Financial LLC acquired a new position in Gaotu Techedu during the first quarter valued at approximately $137,000. Finally, National Bank of Canada FI acquired a new position in Gaotu Techedu during the first quarter valued at approximately $1,788,000. 48.42% of the stock is currently owned by institutional investors and hedge funds.

Gaotu Techedu Price Performance

The firm has a market capitalization of $955.79 million, a price-to-earnings ratio of -9.93 and a beta of 0.20. The firm’s 50-day simple moving average is $3.68 and its 200 day simple moving average is $3.43.

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.