New Oriental Education & Technology Group Inc. (EDU) Stock: A Service Sector Stock That’s Seeing Strong Declines


New Oriental Education & Technology Group Inc. (EDU) is headed down in the market in today’s trading session. The stock, focused on the service space, is presently trading at $105.94 after falling -5.41% so far today. When it comes to service sector companies, there are a number of aspects that have the potential to generate price movement in the market. One of the most common is news. Here are the recent stories relating to EDU:

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Aug-29-19 07:17PM The Most-Bought Chinese Stocks of Investment Gurus
Aug-28-19 01:26PM Retail Leads Market Reversal, As IBD 50 Stock Breaks Out
05:45AM Hedge Funds Got Schooled by China Education Stocks
Aug-27-19 04:17PM New Oriental Education, IBD Stock Of The Day, Offers New Buy Point After Doubling In 2019
Aug-20-19 08:07AM New Oriental Education & Technology Group (NYSE:EDU) Has A Rock Solid Balance Sheet

However, any time investors are making a decision with regard to investing, investors should look into far more than just news, this is especially the case in the ever highly complex service sector. Here’s what’s happening with New Oriental Education & Technology Group Inc..

What We’ve Seen From EDU

Although a single session decline, like the move that we’re seeing from New Oriental Education & Technology Group Inc. may make some investors unhappy, that by itself shouldn’t be the basis of a decision to, or not to, buy a company’s stock. It’s generally important to dig into trends just a single trading session. As it relates to EDU, below are the returns on investment that we’ve seen:

  • Weekly – Throughout the last 7 days, EDU has generated a price change in the amount of -2.81%.
  • Past Month – The performance from New Oriental Education & Technology Group Inc. over the last 30 days comes to 2.02%.
  • Past Three Months – In the past quarter, the company has generated a ROI that comes to 15.97%
  • Past Six Months – In the previous 6 months, investors have seen a performance that amounts to 34.87% from the stock.
  • Year To Date – Since the the first trading session of this year EDU has generated a return on investment of 93.29%.
  • Annually – Lastly, throughout the last year, we have seen performance that works out to 46.45% out of EDU. Over this period of time, the stock has traded at a high of -8.58% and a low price of 110.62%.

Ratios That Are Notable

Looking at various key ratios having to do with a stock can give prospective investors an understanding of just how dangerous and/or rewarding a an investment option may be. Here are some of the most important ratios to think about when looking at EDU.

Short Ratio – The short ratio is a measure of short interest. As the short ratio climbs, it shows that more investors have a belief that the price of the stock is headed for declines. Across the sector, strong service sector stocks can carry a lower short ratio. On the other hand, we also tend to see a lot of short squeezes in the space. Nonetheless, in regard to New Oriental Education & Technology Group Inc., it’s short ratio clocks in at 3.77.

Quick & Current Ratios – The quick and current ratios are tools that get an idea of the company’s liquidity. Basically, they measure If a company is able to pay for its debts as they mature with only current assets or quick assets. do have positive current and quick ratios. As it relates to EDU, the quick and current ratios come to 1.60 and 1.60 respectively.  

Book To Share Value – The book to share value ratio compares the the price of shares to the current book value of assets that are owned by the company. when it comes to New Oriental Education & Technology Group Inc., that ratio is 13.12.

Cash To Share Value – The cash to share value ratio compares the amount of cash the company has on hand to the value of the company’s stock. In this case, the cash to share value ratio is 17.30.

Is Big Money Interested In New Oriental Education & Technology Group Inc.

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 EDU, here’s what we’re seeing:

Institutions own 85.70% of the company. Institutional interest has moved by 0.77% over the past three months. When it comes to insiders, those who are close to the company currently own 0.20% percent of EDU shares. Institutions have seen ownership changes of an accumulative 0.00% over the last three months.

How Analysts Feel About New Oriental Education & Technology Group Inc.

Although it’s never a good idea to blindly follow the opinions of analysts, it is a smart idea to consider their analysis in order to validate your own due diligence when it comes to making an investment decision in the service sector. Here are the recent moves that we have seen from analysts when it comes to EDU.

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Apr-24-19 Reiterated The Benchmark Company Buy $90 → $105
Apr-16-19 Upgrade Deutsche Bank Hold → Buy
Mar-25-19 Upgrade Morgan Stanley Equal-Weight → Overweight
Feb-11-19 Downgrade JP Morgan Overweight → Neutral
Jan-22-19 Upgrade CLSA Outperform → Buy

Financial Results And Expectations

What have ween seen from EDU in terms of financial results?Here’s what we’ve seen and what’s coming:

  • Analyst Expectations – At the moment, analysts have expectations that the company will generate earnings per diluted share coming to a total of 4.49, with 1.37 to be announced in the earnings announcement for the current quarter. Although this data is not based on earnings, since we’re chatting on the topic of analysts, the stock is currently graded as a 1.70 considering a scale that ranges from 1 to 5 where 1 is the poorest possible analyst grade and 5 is the best rating.
  • 5-Year Sales – Throughout the last half decade, New Oriental Education & Technology Group Inc. has reported a movement in sales volume in the amount of 20.60%. EPS in the past 5 years have seen movement in the amount of 16.80%.
  • Quarter Over Quarter – when it comes to quarter over quarter earnings data, or Q/Q data as it is generally referred to as in today’s society, New Oriental Education & Technology Group Inc. has created a change in earnings that amounts to 42.30%. New Oriental Education & Technology Group Inc. has also moved the needle in regard to sales that comes to a total of 28.90%.

A Look At Share Counts

Traders tend to be interested in the total numbers of shares both outstanding and available. When it comes to New Oriental Education & Technology Group Inc., there are currently 158.09M with a float of 119.24M. These data mean that of the total of 158.09M shares of EDU that are out there today, 119.24M are able to trade hands in the public space.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to EDU, the short percent of the float is 3.68%.

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