New Oriental Education & Technology Group Inc. (NYSE: EDU): To Buy Or Not To Buy, That Is The Question

GLBE Stock
GLBE Stock

Fidelity Management & Research Co.. has recently announced that it has increased stake in New Oriental Education & Technology Group Inc. (NYSE:EDU) by 19.00%. After grabbing 4.62 million shares, the institutional investor is now in possession of 0.74 million shares of the Consumer Defensive Company. The new investment brought the stake of investor firm to 2.91% having worth around $647.52 million. Moreover, UBS Asset Management Switzerland.. increased its share by 0.64 million to have a control over 4.53 million shares. And SSgA Funds Management, Inc. raised its holdings to 85433.0 shares by acquiring 3.13 million shares or 1.97% of the stake.

New Oriental Education & Technology Group Inc. (EDU) concluded trading on 08/27/20 at a closing price of $146.12, with 1.09 million shares of worth about $159.72 million changed hands on the day. Weekly performance of the stock remained positive as price took a surge of 7.24% during that period and on Thursday the price saw a gain of about 5.98%. Currently the company’s common shares owned by public are about 158.29M shares, out of which, 137.52M shares are available for trading.

A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 29 analysts are covering the EDU stock and their offered price forecasts bring an average price target of $163.35. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $182.67 and could fall to a lowest price of $145.50. Analysts also issued an outlook of 1.70 for the New Oriental Education & Technology Group Inc. stock for next 12 months. The stock’s current price level is 10.42% above of average price target set by the analysts, while a rise to estimated low would result in loss of -0.43 for the stock. However, touching the estimated high of $182.67 would mean a gain of 20.01% for the stock.

Davis New York Venture Fund, Government Pension Fund – Global, and Vanguard Total International Stoc are the top 3 mutual funds which are holding stakes in New Oriental Education & Technology Group Inc. Davis New York Venture Fund is currently holding 2.86 million shares of worth totaling $400.44 million. The company recently came selling -1.01 million shares which brought its stake up to 1.80% of the company’s outstanding shares. Government Pension Fund – Global bought 0.36 million shares, after which its hold over company’s outstanding shares expand to 1.52%, leaving 2.4 million shares with the mutual fund that have a worth of about $336.76 million. Vanguard Total International Stoc, after selling 2.33 million shares, have now control over 1.47% of the stake in the company. It holds 38524.0 shares of worth $326.12 million.

New Oriental Education & Technology Group Inc. (NYSE: EDU) started trading at $139.68, above $1.8 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $146.12, or with a gain of 5.98%. Stock saw a price change of 7.24% in past 5 days and over the past one month there was a price change of 8.04%. Year-to-date (YTD), EDU shares are showing a performance of 20.51% which increased to 31.57% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $102.01 but also hit the highest price of $153.02 during that period. While comparing its average daily trading volume of 1.08 million shares, we see that about 1.09 million changed hands on the day. The stock is currently trading 4.03% above its 20-day simple moving average (SMA20), while that difference is up 4.93% for SMA50 and it goes to 14.38% higher than SMA200.

Fidelity Management & Research Co.. acquired 4.62 million shares of New Oriental Education & Technology Group Inc. having value of about $647.52 million. Data submitted at the U.S SEC by Fidelity Management & Research Co.. revealed that the firm now holds 0.74 million shares in the company valued at close to $107742020.36, or have control over 19.00% stake in the company. New Oriental Education & Technology Group Inc. (NYSE: EDU) currently have 158.29M outstanding shares and institutions hold larger chunk of about 87.80% of that. Holding of mutual funds in the company is about 40.32% while other institutional holders and individual stake holders have control over 46.26% and — of the stake respectively.

The stock has a current market capitalization of $22.77B and its 3Y-monthly beta is at 1.24. PE ratio of stock for trailing 12 months is 56.44, while it has posted earnings per share of $2.59 in the same period. Its PEG reads 1.78 and has Quick Ratio of 1.50 while making debt-to-equity ratio of 0.04. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for EDU, volatility over the week remained 3.03% while standing at 2.80% over the month.

Analysts are in expectations that New Oriental Education & Technology Group Inc. (EDU) stock would likely to be making an EPS of $1.04 in the current quarter, while forecast for next quarter ESPS is $0.44 and it is $5.26 for next year. For the current quarter EPS, analysts have given the company a lowest target $0.79 which is $1.1 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $1.44 in the same quarter a year ago. Stock’s fiscal year EPS is expected to drop by -20.40% while it is estimated to increase by 41.46% in next year. EPS is likely to grow at an annualized rate of 31.76% for next 5-years, compared to annual growth of 1.80% made by the stock over the past 5-years.

Analysts at 29 brokerage firms have issued recommendations for the New Oriental Education & Technology Group Inc. (EDU)’s stock and average of those rates the stock at a “Strong Buy” and assign it a score of 1.70. Out of those 29 Wall Street analysts, 27 recommended a “Buy” rating, while 0 were in favor recommending the stock as a “Hold” and 0 analyst recommended the stock as “Sell”.

Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by CLSA on April 22, 2020 offering a Buy rating for the stock and assigned a target price of to it. Coverage by Deutsche Bank stated New Oriental Education & Technology Group Inc. (EDU) stock as a Buy in their note to investors on February 28, 2020, suggesting a price target of $150 for the stock. On January 21, 2020, CLSA Downgrade their recommendations, while on October 17, 2019, JP Morgan Resumed their ratings for the stock with a price target of $143. Stock get a Buy rating from The Benchmark Company on April 24, 2019.


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