China Online Education Group (COE) Stock: Is This Service Stock Worth Your Investment?


China Online Education Group (COE) is headed down in the market in today’s trading session. The company, focused on the service sector, is presently trading at $6.02 after tumbling -5.20% so far today. In terms of service stocks, there are quite a few aspects that have the potential to cause price movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent headlines associated with COE:

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May-16-19 07:14AM How Much Of China Online Education Group (NYSE:COE) Do Insiders Own?
03:30AM China Online Education Group to Participate in Upcoming Investor Conferences
Apr-23-19 08:35PM China Online Education Group Files 2018 Annual Report on Form 20-F
Apr-01-19 12:24PM Edited Transcript of COE earnings conference call or presentation 15-Mar-19 12:00pm GMT
Mar-15-19 05:15AM China Online Education Group Announces Fourth Quarter and Fiscal Year 2018 Results

Nonetheless, when making a decision to invest, investors should focus on far more than news, especially in the ever incredibly complex service industry. Here’s what’s happening with China Online Education Group.

Recent Moves From COE

Although a move down in a single session, like what we’re seeing from China Online Education Group may lead to fear in some investors, a single session fall alone should not be the basis of a decision to, or not to, invest in a stock. It’s always a good idea to look at trends experienced by the stock beyond a single trading session. As it relates to COE, here are the trends that investors have experienced:

  • Past 5 Trading Sessions – Throughout the past 5 trading sessions, COE has seen a change in value amounting to -0.17%.
  • Past 30 Days – The monthly ROI from China Online Education Group comes to 1.18%.
  • Past Quarter – Over the last three months, the company has produced a ROI that works out to -8.23%
  • Past Six Months – Throughout the past 6 months, investors have seen a performance that amounts to -31.36% from the company.
  • This Year So Far – Since the close of last year COE has generated a ROI of -16.62%.
  • Full Year – Lastly, over the past full year, we have seen a change of -44.26% out of COE. Throughout this period, the stock has sold at a high price of -51.61% and a low price of 20.16%.

Notable Ratios

Looking at a few key ratios having to do with a company generally gives prospective investors a look of just how dangerous and/or potentially profitable a an investment option might be. Below are a few of the important ratios to consider when looking at COE.

Short Ratio – The short ratio is a measure of short interest. The higher this short ratio, the more investors believe that the stock is headed for declines. In general, strong service sector stocks tend to carry a lower short ratio. On the other hand, we tend to see quite a few short squeezes in the space. Nonetheless, in relation to China Online Education Group, it’s short ratio amounts to 0.

Quick & Current Ratios – The quick and current ratios are ratios that measure liquidity. Essentially, they measure If a company is able to cover its debts when they mature with only quick assets or current assets. do have positive quick and current ratios. As far as COE, the quick and current ratios come to 0.50 and 0.50 respectively.  

Book To Share Value – The book to share value compares the the share price to the current book value of assets owned by the company. as it relates to China Online Education Group, the book to share value ratio is -6.86.

Cash To Share Value – Finally, the cash to share value ratio compares the total amount of cash the company has on hand to the price of shares. As it relates to COE, the cash to share value ratio is 4.81.

Show Me The Big Money

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in COE, here’s what we’re seeing:

Institutions own 98.70% of the company. Institutional interest has moved by -2.20% over the past three months. When it comes to insiders, those who are close to the company currently own 6.24% percent of COE shares. Institutions have seen ownership changes of an accumulative 0.00% over the last three months.

What Analysts Say About China Online Education Group

While it’s never a smart idea to unknowingly follow the opinions of analysts, it is a smart idea to consider their thoughts to validate your own due diligence before making investment decisions in the service space. Here are the most recent moves that we’ve seen from analysts as it relates to COE.

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What We’ve Seen In earnings results

What have ween seen from COE in terms of financial results?Here’s what you need to know:

  • Analyst Expectations – As it stands at the moment, Wall St. analysts expect that COE will come up with EPS coming to a total of 0, with 0 to be reported in the earnings report for the current quarter. Although this is not based on earnings, since we’re chatting on the topic of analysts, COE is currently rated a 2.00 when rated on a scale from 1 to 5 on which 1 is the poorest possible Wall Street analyst grade and 5 is the best possible.
  • 5-Year Sales – Over the last 5 years, China Online Education Group has reported a movement in sales that adds up to 121.10%. Earnings per diluted share through the last 5 years have seen movement in the amount of 0.
  • Quarter Over Quarter – when it comes to quarter over quarter earnings performance, or Q/Q data as it is generally referred to as in today’s society, COE has generated a change in earnings that comes to a total of 13.30%. COE has also experienced a change in terms of revenue that comes to a total of 14.40%.

Looking At Share Counts

Traders and investors seem to be interested in the amounts of shares both outstanding and available. In regard to China Online Education Group, there are currently 21.50M and there is a float of 0.01M. This means that out of the total of 21.50M shares of COE that are out there today, 0.01M are able to trade hands in the public realm.

I also find it important to look at the short percentage of the float. Think about it, if a high portion of the float is shorted, the overall opinion among traders is that the stock is headed for a dive. With regard to COE, the percentage of the float that is shorted is 0. Most traders believe that a concerning short percent of the float would be any percentage over 40%. However, I have seen that a short ratio over 26% is usually a a play that could prove to be very risky.

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