Cederberg Capital Reduces New Oriental Education Holdings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: NASDAQ.COM
- Share Reduction Details: Cederberg Capital sold 826,670 shares of New Oriental Education (NYSE:EDU) in Q1 2026, resulting in a decline of approximately $45 million in the value of its holdings, reflecting both market volatility and trading activities.
- Holding Proportion Analysis: After the sale, Cederberg retained 73,048 shares valued at $4.14 million, representing 2.2% of its AUM, indicating a concentrated investment strategy in Chinese internet and consumer sectors.
- Company Performance Highlights: New Oriental Education reported third-quarter revenue of $1.42 billion, up nearly 20% year-over-year, with operating income and net income both increasing by 45%, showcasing strong growth in overseas test preparation and adult education initiatives.
- Shareholder Return Strategy: New Oriental has approved another dividend payment and repurchased approximately $184 million of stock under its buyback program as of April 21, demonstrating its commitment to returning capital to shareholders, despite its stock performance lagging behind the broader market.
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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: 45.790
Low
60.00
Averages
68.00
High
76.00
Current: 45.790
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.
Cederberg Capital Reduces New Oriental Education Holdings
- Share Reduction Details: Cederberg Capital sold 826,670 shares of New Oriental Education (NYSE:EDU) in Q1 2026, resulting in a decline of approximately $45 million in the value of its holdings, reflecting both market volatility and trading activities.
- Holding Proportion Analysis: After the sale, Cederberg retained 73,048 shares valued at $4.14 million, representing 2.2% of its AUM, indicating a concentrated investment strategy in Chinese internet and consumer sectors.
- Company Performance Highlights: New Oriental Education reported third-quarter revenue of $1.42 billion, up nearly 20% year-over-year, with operating income and net income both increasing by 45%, showcasing strong growth in overseas test preparation and adult education initiatives.
- Shareholder Return Strategy: New Oriental has approved another dividend payment and repurchased approximately $184 million of stock under its buyback program as of April 21, demonstrating its commitment to returning capital to shareholders, despite its stock performance lagging behind the broader market.
See More
Cederberg Capital Sells 826,670 Shares of New Oriental Education
- Share Reduction Details: Cederberg Capital reduced its holdings in New Oriental Education by 826,670 shares in Q1 2026, resulting in a decrease of approximately $45 million in position value, reflecting both trading activities and stock price fluctuations.
- Financial Performance: New Oriental Education reported third-quarter revenue of $1.42 billion, marking a nearly 20% year-over-year increase, with operating income and net income both rising by 45%, indicating strong growth in overseas test preparation and adult education initiatives.
- Shareholder Return Strategy: The company has approved another dividend payment and repurchased approximately $184 million of stock under its buyback program as of April 21, demonstrating its commitment to returning capital to shareholders.
- Market Performance Discrepancy: Despite strong operational performance, New Oriental's stock has lagged behind the broader market; however, management raised full-year revenue guidance and ended the quarter with over $5.2 billion in cash and short-term investments, suggesting potential for future growth.
See More
Tiger Pacific Capital Exits New Oriental Education Stake
- Stake Sale Overview: According to an SEC filing dated May 15, 2026, Tiger Pacific Capital sold all 428,532 shares of New Oriental Education in Q1, with an estimated transaction value of approximately $24.48 million, indicating a strategic portfolio reshuffle within the education sector.
- Position Change Analysis: Following the sale, Tiger Pacific reported a net position change of $23.58 million in New Oriental, suggesting that while it exited this investment, the fund still favors the education sector, as evidenced by its significant holdings in TAL Education.
- Company Performance Highlights: New Oriental's Q3 revenue surged nearly 20% year-over-year to $1.42 billion, with operating income and net income both rising by 45%, reflecting strong growth in overseas test preparation and adult education initiatives.
- Shareholder Return Strategy: New Oriental has approved a $0.60 per ADS dividend and repurchased approximately $184 million of stock under its buyback program as of April, demonstrating its commitment to returning capital to shareholders while maintaining robust cash generation.
See More
Tiger Pacific Capital Exits New Oriental Education Stake
- Share Sale Overview: Tiger Pacific Capital sold 428,532 shares of New Oriental Education in Q1, with an estimated transaction value of $24.48 million, indicating a portfolio reshuffle within the education sector.
- Asset Management Changes: This transaction resulted in a $23.58 million decrease in the fund's position value at quarter-end, reflecting the impact of market volatility on its asset management scale.
- Company Performance Highlights: Despite the exit, New Oriental Education achieved nearly 20% revenue growth in Q3, reaching $1.42 billion, with operating income and net income both rising by 45%, showcasing its ongoing business growth potential.
- Shareholder Return Strategy: New Oriental Education has been proactive in capital returns, approving a $0.60 per ADS dividend and repurchasing approximately $184 million in stock under its buyback program, demonstrating strong cash flow and commitment to shareholder value creation.
See More
Green Court Capital Reduces New Oriental Holdings
- Share Reduction Impact: According to the SEC filing dated May 11, 2026, Green Court Capital Management Ltd reduced its holdings in New Oriental Education by 138,300 shares, leaving a remaining stake valued at $16.62 million, reflecting both market price fluctuations and share sales.
- Asset Allocation Shift: Following this reduction, New Oriental now represents 15.37% of Green Court's 13F assets, indicating a reallocation of investments that may influence future investment strategies.
- Financial Performance Highlights: In Q1 2026, New Oriental reported a 19.8% year-over-year revenue increase to $1.42 billion, with operating income rising 44.8% and operating margin improving from 10.5% to 12.7%, demonstrating enhanced profitability under its new business model.
- Future Growth Challenges: While the improved margins make New Oriental's recovery more appealing, investments in new learning centers, teachers, and marketing could dilute operating leverage, making the sustainability of future growth contingent on its ability to convert demand into higher operating income.
See More
First Beijing Investment Increases Stake in Full Truck Alliance
- Share Acquisition Details: On May 13, 2026, First Beijing Investment Ltd disclosed an acquisition of 13,384,327 shares of Full Truck Alliance (NYSE:YMM), valued at approximately $127.30 million, indicating ongoing confidence in the company despite market challenges.
- Stake Percentage Change: Following this purchase, First Beijing's stake in Full Truck Alliance rose to 32.22%, although the quarter-end position's value decreased by $75.09 million due to stock price fluctuations, reflecting a lack of market confidence in the stock.
- Market Performance Analysis: As of May 15, 2026, Full Truck Alliance shares were priced at $8.66, down 30.6% year-over-year and lagging the S&P 500 by 55.82 percentage points, highlighting significant competitive pressures in the market.
- Investor Considerations: While First Beijing's increased stake suggests confidence in Full Truck Alliance, investors should carefully assess whether their investment thesis aligns with this position, particularly given the stock's ongoing decline in the current market environment.
See More
Cederberg Capital Reduces New Oriental Education Holdings
- Share Reduction Details: Cederberg Capital sold 826,670 shares of New Oriental Education (NYSE:EDU) in Q1 2026, resulting in a decline of approximately $45 million in the value of its holdings, reflecting both market volatility and trading activities.
- Holding Proportion Analysis: After the sale, Cederberg retained 73,048 shares valued at $4.14 million, representing 2.2% of its AUM, indicating a concentrated investment strategy in Chinese internet and consumer sectors.
- Company Performance Highlights: New Oriental Education reported third-quarter revenue of $1.42 billion, up nearly 20% year-over-year, with operating income and net income both increasing by 45%, showcasing strong growth in overseas test preparation and adult education initiatives.
- Shareholder Return Strategy: New Oriental has approved another dividend payment and repurchased approximately $184 million of stock under its buyback program as of April 21, demonstrating its commitment to returning capital to shareholders, despite its stock performance lagging behind the broader market.
See More
Cederberg Capital Sells 826,670 Shares of New Oriental Education
- Share Reduction Details: Cederberg Capital reduced its holdings in New Oriental Education by 826,670 shares in Q1 2026, resulting in a decrease of approximately $45 million in position value, reflecting both trading activities and stock price fluctuations.
- Financial Performance: New Oriental Education reported third-quarter revenue of $1.42 billion, marking a nearly 20% year-over-year increase, with operating income and net income both rising by 45%, indicating strong growth in overseas test preparation and adult education initiatives.
- Shareholder Return Strategy: The company has approved another dividend payment and repurchased approximately $184 million of stock under its buyback program as of April 21, demonstrating its commitment to returning capital to shareholders.
- Market Performance Discrepancy: Despite strong operational performance, New Oriental's stock has lagged behind the broader market; however, management raised full-year revenue guidance and ended the quarter with over $5.2 billion in cash and short-term investments, suggesting potential for future growth.
See More
Tiger Pacific Capital Exits New Oriental Education Stake
- Stake Sale Overview: According to an SEC filing dated May 15, 2026, Tiger Pacific Capital sold all 428,532 shares of New Oriental Education in Q1, with an estimated transaction value of approximately $24.48 million, indicating a strategic portfolio reshuffle within the education sector.
- Position Change Analysis: Following the sale, Tiger Pacific reported a net position change of $23.58 million in New Oriental, suggesting that while it exited this investment, the fund still favors the education sector, as evidenced by its significant holdings in TAL Education.
- Company Performance Highlights: New Oriental's Q3 revenue surged nearly 20% year-over-year to $1.42 billion, with operating income and net income both rising by 45%, reflecting strong growth in overseas test preparation and adult education initiatives.
- Shareholder Return Strategy: New Oriental has approved a $0.60 per ADS dividend and repurchased approximately $184 million of stock under its buyback program as of April, demonstrating its commitment to returning capital to shareholders while maintaining robust cash generation.
See More
Tiger Pacific Capital Exits New Oriental Education Stake
- Share Sale Overview: Tiger Pacific Capital sold 428,532 shares of New Oriental Education in Q1, with an estimated transaction value of $24.48 million, indicating a portfolio reshuffle within the education sector.
- Asset Management Changes: This transaction resulted in a $23.58 million decrease in the fund's position value at quarter-end, reflecting the impact of market volatility on its asset management scale.
- Company Performance Highlights: Despite the exit, New Oriental Education achieved nearly 20% revenue growth in Q3, reaching $1.42 billion, with operating income and net income both rising by 45%, showcasing its ongoing business growth potential.
- Shareholder Return Strategy: New Oriental Education has been proactive in capital returns, approving a $0.60 per ADS dividend and repurchasing approximately $184 million in stock under its buyback program, demonstrating strong cash flow and commitment to shareholder value creation.
See More
Green Court Capital Reduces New Oriental Holdings
- Share Reduction Impact: According to the SEC filing dated May 11, 2026, Green Court Capital Management Ltd reduced its holdings in New Oriental Education by 138,300 shares, leaving a remaining stake valued at $16.62 million, reflecting both market price fluctuations and share sales.
- Asset Allocation Shift: Following this reduction, New Oriental now represents 15.37% of Green Court's 13F assets, indicating a reallocation of investments that may influence future investment strategies.
- Financial Performance Highlights: In Q1 2026, New Oriental reported a 19.8% year-over-year revenue increase to $1.42 billion, with operating income rising 44.8% and operating margin improving from 10.5% to 12.7%, demonstrating enhanced profitability under its new business model.
- Future Growth Challenges: While the improved margins make New Oriental's recovery more appealing, investments in new learning centers, teachers, and marketing could dilute operating leverage, making the sustainability of future growth contingent on its ability to convert demand into higher operating income.
See More
First Beijing Investment Increases Stake in Full Truck Alliance
- Share Acquisition Details: On May 13, 2026, First Beijing Investment Ltd disclosed an acquisition of 13,384,327 shares of Full Truck Alliance (NYSE:YMM), valued at approximately $127.30 million, indicating ongoing confidence in the company despite market challenges.
- Stake Percentage Change: Following this purchase, First Beijing's stake in Full Truck Alliance rose to 32.22%, although the quarter-end position's value decreased by $75.09 million due to stock price fluctuations, reflecting a lack of market confidence in the stock.
- Market Performance Analysis: As of May 15, 2026, Full Truck Alliance shares were priced at $8.66, down 30.6% year-over-year and lagging the S&P 500 by 55.82 percentage points, highlighting significant competitive pressures in the market.
- Investor Considerations: While First Beijing's increased stake suggests confidence in Full Truck Alliance, investors should carefully assess whether their investment thesis aligns with this position, particularly given the stock's ongoing decline in the current market environment.
See More
