Beijing based tech powered education company Gaotu Techedu Inc (NYSE: GOTU) was trading in a range on Friday and it was perhaps not surprising considering the fact that there has been no news about the company at all for a long time.
Market Reaction
On Friday, GOTU stock gained 5% at $1.52 with more than 4.32 million shares, compared to its average volume of 5.18 million shares. The stock moved within a range of $1.4900 – 1.6000 after opening trade at $1.49.
Recent Earnings
The last time the company was in the news was back on March 8 when it made an announcement with regards to the unaudited financial results for the fourth fiscal quarter and the fiscal year, both of which had ended on December 31, 2021. The company announced that it had generated net revenues to the tune of RMB1274.3 million in the fourth quarter and that was far lower than the RMB2211 million that it had generated in the prior year period.
On the other hand, the gross billings for the period stood at RMB1006.5 million and that was again lower than the gross billing that had touched RMB38146.5 million in the fourth quarter of 2020. However, the company did manage to generate net income of RMB285.9 million in the quarter and that was a significant turnaround from the RMB627 million worth of losses in the prior year period that ended on December 31, 2020.
Traders Review
GOTU stock is trading below 20-Day and 50-Day Moving averages of $1.68 and $1.84 respectively. However, the stock is trading above the 200-Day moving average of $2.89. The stock is down 34% over the past month.
