Aubrey Capital Acquires Stake in New Oriental Education
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy EDU?
Source: Fool
- New Investment Disclosure: On May 5, 2026, Aubrey Capital Management disclosed its stake in New Oriental Education & Technology Group, acquiring 174,600 shares valued at approximately $9.97 million, reflecting confidence in the recovery of the education sector.
- Asset Management Proportion: This new investment represents 5% of Aubrey Capital Management's reportable AUM as of March 31, 2026, indicating a strategic positioning in the education sector.
- Significant Performance Growth: New Oriental reported nearly 20% year-over-year revenue growth in the latest quarter, reaching $1.42 billion, with operating income and net income increasing by 44.8% and 45.3%, respectively, showcasing substantial operational efficiency improvements.
- Market Performance Analysis: Despite a 7.6% rise in New Oriental's stock price over the past year, it underperformed the S&P 500 by 18.5 percentage points, making Aubrey Capital's investment a measured bet on a recovery narrative, suggesting confidence in the company's fundamentals amidst market sentiment fluctuations.
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Analyst Views on EDU
Wall Street analysts forecast EDU stock price to rise
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 53.610
Low
60.00
Averages
68.00
High
76.00
Current: 53.610
Low
60.00
Averages
68.00
High
76.00
About EDU
New Oriental Education & Technology Group Inc is a holding company principally engaged in the provision of a variety of educational programs, services and products. The Company primarily operates four segments. Educational Services and Test Preparation Courses segment is mainly engaged in the provision of educational services and test preparation courses and online education services. Private Label Products and Livestreaming E-Commerce segment is mainly engaged in the sale of private label products and livestreaming e-commerce business through East Buy. Overseas Study Consulting Services segment mainly helps students through the application and admission process for overseas educational institutions, provides college, graduate and career counseling advice, and counsels and assists students with the immigration process for overseas studies, such as obtaining visas and arranging housing. Other segment is mainly engaged in educational materials and distribution and other businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Aubrey Capital Acquires Stake in New Oriental Education
- New Investment Disclosure: On May 5, 2026, Aubrey Capital Management disclosed its stake in New Oriental Education & Technology Group, acquiring 174,600 shares valued at approximately $9.97 million, reflecting confidence in the recovery of the education sector.
- Asset Management Proportion: This new investment represents 5% of Aubrey Capital Management's reportable AUM as of March 31, 2026, indicating a strategic positioning in the education sector.
- Significant Performance Growth: New Oriental reported nearly 20% year-over-year revenue growth in the latest quarter, reaching $1.42 billion, with operating income and net income increasing by 44.8% and 45.3%, respectively, showcasing substantial operational efficiency improvements.
- Market Performance Analysis: Despite a 7.6% rise in New Oriental's stock price over the past year, it underperformed the S&P 500 by 18.5 percentage points, making Aubrey Capital's investment a measured bet on a recovery narrative, suggesting confidence in the company's fundamentals amidst market sentiment fluctuations.
See More
New Oriental Education Reports Strong Q1 FY2026 Earnings
- Significant Revenue Growth: New Oriental Education reported total net revenue of $1.473 billion for Q1 FY2026, reflecting a 19.8% year-over-year increase, indicating strong demand and an increase in market share within the education sector.
- Substantial Operating Income Increase: Non-GAAP operating income rose to $202.9 million, a 42.8% year-over-year increase, demonstrating the company's significant progress in cost control and operational efficiency, thereby enhancing its future profitability foundation.
- Strong Performance of New Education Initiatives: Revenue from new educational initiatives grew by 23% year-over-year, which not only reflects the success in non-academic tutoring and intelligent learning systems but also lays the groundwork for sustainable growth in the future.
- Challenges in Overseas Consulting Business: Despite overall strong performance, the overseas study consulting segment experienced a 4% revenue decline, indicating market challenges that could impact the company's overall profitability.
See More
New Oriental (EDU) Q4 2025 Earnings Transcript
See More
New Oriental (EDU) Q1 2025 Earnings Transcript
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New Oriental (EDU) Q3 2026 Earnings Transcript
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New Oriental Reports Higher Earnings in Q3 Driven by Growth
- Significant Earnings Growth: New Oriental reported a net income of $126.82 million for Q3 FY2026, a 45.4% increase from $87.26 million last year, indicating strong growth in core and new education businesses, which enhances the company's overall financial health.
- Increased Earnings Per Share: The earnings per share rose to $0.08 from $0.05 year-over-year, reflecting the company's success in improving operational efficiency and user growth, thereby boosting investor confidence.
- Dividend Payment Plan: The board approved a second installment dividend of $0.06 per common share, expected to be paid on June 2, demonstrating the company's commitment to shareholder returns and reflecting its robust cash flow position.
- Optimistic Future Outlook: New Oriental anticipates Q4 net revenues between $1.43 billion and $1.47 billion, representing a year-over-year increase of 15% to 18%, and raised its full-year FY2026 total net revenue guidance to $5.56 billion to $5.60 billion, indicating strong confidence in future growth.
See More
Aubrey Capital Acquires Stake in New Oriental Education
- New Investment Disclosure: On May 5, 2026, Aubrey Capital Management disclosed its stake in New Oriental Education & Technology Group, acquiring 174,600 shares valued at approximately $9.97 million, reflecting confidence in the recovery of the education sector.
- Asset Management Proportion: This new investment represents 5% of Aubrey Capital Management's reportable AUM as of March 31, 2026, indicating a strategic positioning in the education sector.
- Significant Performance Growth: New Oriental reported nearly 20% year-over-year revenue growth in the latest quarter, reaching $1.42 billion, with operating income and net income increasing by 44.8% and 45.3%, respectively, showcasing substantial operational efficiency improvements.
- Market Performance Analysis: Despite a 7.6% rise in New Oriental's stock price over the past year, it underperformed the S&P 500 by 18.5 percentage points, making Aubrey Capital's investment a measured bet on a recovery narrative, suggesting confidence in the company's fundamentals amidst market sentiment fluctuations.
See More
New Oriental Education Reports Strong Q1 FY2026 Earnings
- Significant Revenue Growth: New Oriental Education reported total net revenue of $1.473 billion for Q1 FY2026, reflecting a 19.8% year-over-year increase, indicating strong demand and an increase in market share within the education sector.
- Substantial Operating Income Increase: Non-GAAP operating income rose to $202.9 million, a 42.8% year-over-year increase, demonstrating the company's significant progress in cost control and operational efficiency, thereby enhancing its future profitability foundation.
- Strong Performance of New Education Initiatives: Revenue from new educational initiatives grew by 23% year-over-year, which not only reflects the success in non-academic tutoring and intelligent learning systems but also lays the groundwork for sustainable growth in the future.
- Challenges in Overseas Consulting Business: Despite overall strong performance, the overseas study consulting segment experienced a 4% revenue decline, indicating market challenges that could impact the company's overall profitability.
See More
New Oriental (EDU) Q4 2025 Earnings Transcript
See More
New Oriental (EDU) Q1 2025 Earnings Transcript
See More
New Oriental (EDU) Q3 2026 Earnings Transcript
See More
New Oriental Reports Higher Earnings in Q3 Driven by Growth
- Significant Earnings Growth: New Oriental reported a net income of $126.82 million for Q3 FY2026, a 45.4% increase from $87.26 million last year, indicating strong growth in core and new education businesses, which enhances the company's overall financial health.
- Increased Earnings Per Share: The earnings per share rose to $0.08 from $0.05 year-over-year, reflecting the company's success in improving operational efficiency and user growth, thereby boosting investor confidence.
- Dividend Payment Plan: The board approved a second installment dividend of $0.06 per common share, expected to be paid on June 2, demonstrating the company's commitment to shareholder returns and reflecting its robust cash flow position.
- Optimistic Future Outlook: New Oriental anticipates Q4 net revenues between $1.43 billion and $1.47 billion, representing a year-over-year increase of 15% to 18%, and raised its full-year FY2026 total net revenue guidance to $5.56 billion to $5.60 billion, indicating strong confidence in future growth.
See More
