First Beijing Investment Increases New Oriental Education Stake by 2.23 Million Shares, Valued at $496 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Share Increase: First Beijing Investment added 2.23 million shares of New Oriental Education during the quarter ending September 30, investing $112.15 million, which brings its total holdings to 9.35 million shares valued at $496.02 million, indicating sustained confidence in the education sector.
- Portfolio Adjustment: New Oriental now comprises 19.15% of the fund's U.S. equity portfolio, highlighting its significance as a key asset and reflecting a reassessment of the education market after recent industry challenges.
- Financial Performance: In the first fiscal quarter, New Oriental's revenue rose 6.1% year-over-year to $1.52 billion, with operating income reaching $310.8 million; despite a slight 2% decline in net income, non-GAAP operating income grew 11.3%, showcasing effective cost management.
- Market Positioning: New Oriental maintains its competitive position in the Chinese education market through a diversified portfolio of educational services and strong brand presence, demonstrating potential for sustained growth despite regulatory pressures and market changes.
Analyst Views on EDU
Wall Street analysts forecast EDU stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EDU is 67.44 USD with a low forecast of 58.20 USD and a high forecast of 76.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
4 Buy
1 Hold
0 Sell
Strong Buy
Current: 55.600
Low
58.20
Averages
67.44
High
76.00
Current: 55.600
Low
58.20
Averages
67.44
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.
