Aubrey Capital acquires stake in New Oriental Education
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 05 2026
0mins
Should l Buy EDU?
Source: Fool
New Oriental Education & Technology Group Inc's stock fell 5.34% as it crossed below the 5-day SMA amid broader market gains. Aubrey Capital Management disclosed its acquisition of 174,600 shares valued at approximately $9.97 million, reflecting confidence in the recovery of the education sector. Despite a 20% year-over-year revenue growth and significant increases in operating and net income, New Oriental's stock has underperformed the S&P 500, making Aubrey Capital's investment a strategic bet on the company's fundamentals.
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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: 50.900
Low
60.00
Averages
68.00
High
76.00
Current: 50.900
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.
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.
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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
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
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
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
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
