The stock of GSX Techedu Inc. (NYSE:GSX) is now priced at $88.01 and the shares are -1.19 points down or -1.33% lower compared to its previous closing price of $89.2. The stock had 3.965 million contracts set over the past session. GSX shares’ daily volume is compared to its average trading volume at 6.682 million shares. However, it has a float of 128 million and although its performance was -8.85% over the week, it’s one to watch. Analysts have given the GSX stock a yearly average price target of $73.61 per share. It means the stock’s downside potential is -16.36% with the GSX share price recently placing at $85.46 to $94.79. However, some brokerage firms have priced the stock below the average, including one that has called $¥276.32.
The shorts are running away from the GSX Techedu Inc. stock, with the latest data on short interest released on July 31, 2020, showing that short interest numbers in the GSX shares have declined. Short interest in the stock represents just 19.83% of its float, but the volume has dropped by 0.
In the last trading session, GSX Techedu Inc. (NYSE:GSX) dropped by -$8.55 over the week and gained $3.9 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $141.78. The stock recorded its established 52-week high on 08/07/20.
Since 09/06/19, the stock has traded to a low of $11.72 at 650.94%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge.
Looking at current readings, GSX Techedu Inc.’s two-week RSI is 48.8. This suggests that the stock is neutral at the moment and that GSX shares’ price movement remains stable. The stochastic readings are equally revealing at 18.09% meaning the GSX share price is currently in overbought territory.
The technical chart shows that the GSX stock will likely settle at between $93.38 and $98.75 per share. However, if the stock dips below $84.05, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $80.09.
Currently, the stock is trading in the red of MACD, with a reading of -10.13. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at Citigroup cut their recommendation for GSX from Buy to Sell in August 10 review while maintai their target price of $115. Deutsche Bank analysts downgraded their recommendation of the stock from Buy to Hold in a flash note released to investors on July 27. Barclays seeing the stock struggling downgraded it from Overweight to Equal Weight on July 16 placing it at $76.
The average rating for the GSX equity is 2.58 and is currently gathering a bullish momentum. Of 11 analysts tracking GSX Techedu Inc. polled by Reuters, 8 rated GSX as a hold. The remaining 3 analysts were split evenly. However, the split wasn’t equal as a majority (1) rated it as a buy or strong buy. 2 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the GSX stock price is 15.02X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands at 458.9 below the group’s average of 687.9. GSX Techedu Inc. has its P/E ratio at 84.6, which means that the stock is currently trading at a premium relative to the 6.3 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for GSX Techedu Inc. (NYSE:GSX) will decrease by about -99.88%, which will see them reach $229 million. The company’s full-year revenues are, however, expected to increase by about 234.23%, up from $302 million to $1010 million. GSX’s expected adjusted earnings should surge almost 500% to end up at $0.06 per share, while for the fiscal year, analysts project the company’s earnings to grow by about 147.06% to record $0.42/share.