New Oriental Education Receives Mixed Ratings from Analysts

New Oriental Education & Technology Group, Inc. (NYSE:EDU) has garnered an average recommendation of “Hold” from eleven brokerages currently monitoring the company. According to MarketBeat, this consensus reflects a mix of opinions, with two analysts advising to sell the stock, six recommending to hold, and three suggesting a buy.

The average price target for New Oriental shares among these analysts stands at approximately $59.53. Recent assessments from significant financial institutions have contributed to this outlook. For instance, on October 29, 2023, JPMorgan Chase & Co. increased their target price for New Oriental from $60.00 to $68.00, while assigning an “overweight” rating.

Conversely, Zacks Research downgraded the company from a “hold” to a “strong sell” on November 3, 2023. The Goldman Sachs Group maintained a “neutral” rating and set a price objective of $60.00 for New Oriental shares, also on October 29, 2023. Citigroup adjusted its target price downward from $77.00 to $75.00, issuing a “buy” rating on September 9, 2023. Meanwhile, Bank of America lifted their price target from $56.20 to $58.20, also giving a “buy” rating on September 29, 2023.

Recent Stock Performance and Dividend Announcement

New Oriental Education’s stock saw a modest increase of 0.2% recently, reflecting some investor optimism. The firm also declared a special dividend, which was paid on December 5, 2023. Shareholders on record as of November 18, 2023 received a dividend of $0.60 per share. The ex-dividend date was the same day, with the company currently maintaining a payout ratio of 25.55%.

Investor Activity and Institutional Holdings

Recent changes in institutional holdings indicate growing interest in New Oriental Education. First Beijing Investment Ltd increased its stake by 31.4% during the third quarter, now owning over 9.34 million shares worth approximately $496 million. Aspex Management HK Ltd also raised its holdings by 18.8% in the second quarter, accumulating 6.98 million shares valued at around $376.6 million.

Alkeon Capital Management LLC made a notable increase, boosting its ownership by 101.3% during the same period, now holding 2.19 million shares valued at about $118.3 million. Additionally, Discerene Group LP acquired a new stake valued at approximately $75.6 million, while Greenwoods Asset Management Hong Kong Ltd increased its stake by 13.7% in the first quarter, now owning 1.39 million shares worth around $66.7 million.

New Oriental Education & Technology Group is recognized as one of China’s leading providers of private educational services. Founded in 1993 by Michael Yu Minhong in Beijing, the company specializes in language training, test preparation, and consulting for overseas study. Its diverse offerings include English language instruction and preparatory courses for various assessments such as the TOEFL, GRE, and GMAT, delivered through in-person learning centers and digital platforms. This combination allows a wide range of students to access New Oriental’s educational resources effectively.