New Oriental Education & Technology Group (NYSE: EDU) received an upgrade from Zacks Research, moving from a “strong sell” rating to a “hold” rating, as detailed in a report released on Monday. This change indicates a shift in analysts’ confidence regarding the company’s stock outlook, which has been under scrutiny in recent months.
Analyst Ratings and Price Targets
Following the upgrade, various financial institutions have issued their assessments of New Oriental Education. On September 9, 2023, Citigroup reduced its price target for the company from $77.00 to $75.00, maintaining a “buy” rating. In a report dated September 29, Bank of America raised its target price from $56.20 to $58.20 while also assigning a “buy” rating.
Additionally, JPMorgan Chase & Co. increased its price objective from $60.00 to $68.00 on October 29, granting the company an “overweight” rating. On the same day, Goldman Sachs reiterated a “neutral” rating with a price objective of $60.00.
The overall sentiment from analysts reflects a mixed outlook. According to data from MarketBeat, three analysts have assigned a “buy” rating, while seven have opted for a “hold” rating, and one has recommended a “sell.” The consensus rating for the stock stands at “hold,” with an average price target of $59.53.
Recent Institutional Trading Activity
Institutional investors have been actively adjusting their stakes in New Oriental Education. For instance, Alkeon Capital Management LLC increased its holdings by an impressive 101.3% during the second quarter, now owning 2,193,486 shares valued at approximately $118.34 million. This increase followed the purchase of an additional 1,104,000 shares.
Similarly, Yiheng Capital Management L.P. raised its position by 15.4% in the first quarter, acquiring 79,766 shares worth $28.59 million. Jump Financial LLC also bolstered its stake by 64.5%, now holding 171,108 shares valued at about $9.23 million.
Other notable investors include Campbell & CO Investment Adviser LLC, which purchased a new position valued at around $621,000, and MY.Alpha Management HK Advisors Ltd, which acquired shares worth approximately $6.43 million.
Overview of New Oriental Education
Founded in 1993 by Michael Yu Minhong in Beijing, New Oriental Education & Technology Group has grown to become one of China’s leading private educational service providers. The company specializes in language training, test preparation, and consulting for students seeking overseas study opportunities. Its diverse offerings include English instruction, preparatory courses for standardized tests such as the TOEFL, GRE, and GMAT, as well as K-12 after-school tutoring.
New Oriental employs a hybrid model to deliver its curriculum, utilizing both physical learning centers and digital platforms to reach students across various regions. This approach has allowed the company to adapt to changing educational demands and maintain its competitive edge in the market.
As the landscape of education continues to evolve, the performance and strategic decisions made by New Oriental Education will undoubtedly be closely monitored by investors and analysts alike.
