Tarena International, Inc. (TEDU) Stock: Why It’s Headed For The Bottom – iWatch Markets

Tarena International, Inc. (TEDU) is headed down in the market in today’s trading session. The company, one that is focused in the service industry, is presently priced at $3.92 after a move down of -7.55% so far in today’s session. As it relates to service sector companies, there are a number of factors that have the ability to lead to price movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent trending headlines surrounding TEDU:

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Nonetheless, any time investors are making an investing decision, prospective investors should take a look at much more than just news, especially in the ever highly complex service industry. Here’s what’s happening in regard to Tarena International, Inc..

The Performance That TEDU Investors Have Experienced

While a decline in a single session, like the fall that we’re seeing from Tarena International, Inc. may cause fear in some investors, that by itself should not be the reason for a decision to, or not to, invest in a stock. It is always important to dig into trends experienced by the stock further out than a single session. When it comes to TEDU, below are the returns that investors have experienced:

  • Weekly – Over the last five trading sessions, TEDU has produced a change in price amounting to -10.71%.
  • Past Month – The monthly returns from Tarena International, Inc. works out to -25.90%.
  • Quarterly – Throughout the last three months, the company has generated a return on investment that works out to -38.65%
  • Past Six Months – Throughout the last six months, we have seen a change that equates to -56.30% from the company.
  • YTD – Since the the first trading session of this year TEDU has resulted in a ROI of -37.78%.
  • Full Year – Finally, throughout the last year, investors have seen movement that comes to -60.64% from TEDU. In this period of time, the stock has sold at a high of -61.11% and a low of -6.44%.

Ratios Worth Paying Attention To

Digging into various ratios associated with a company generally gives traders an understanding of how dangerous and/or potentially profitable a an investment option may be. Here are some of the key ratios to think about when digging into TEDU.

Short Ratio – The short ratio is a measure of short interest. As the ratio climbs, it means that more investors are expecting that the price of the stock is headed for declines. In general, strong service stocks can have a lower short ratio. On the other hand, we also tend to see quite a few short squeezes in the sector. Nonetheless, in relation to Tarena International, Inc., the stock’s short ratio comes to 7.84.

Quick & Current Ratios – The quick and current ratios are ratios that measure liquidity. Essentially, they measure whether or not a company can pay its debts as they mature based on quick assets or current assets. do have positive current and quick ratios. When it comes to TEDU, the quick and current ratios add up to 0.90 and 0.90 respectively.  

Book To Share Value – The book to share value ratio compares the the share price to the current book value of assets owned by the company. when it comes to Tarena International, Inc., that ratio equates to 2.58.

Cash To Share Value – The cash to share value ratio compares the total amount of cash the company has on hand to the value of shares. When it comes to TEDU, the cash to share value is 1.82.

Investors Tend To Follow The Big Money

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in TEDU, here’s what we’re seeing:

  • Institutions – Currently, institutional investors hold 42.80% of Tarena International, Inc.. On the other hand, it is worth mentioning that institutional ownership has changed in the amount of -0.27% in the past quarter.
  • Insiders – When it comes to insiders, members of the management team and others close to TEDU currently hold 34.04% of Tarena International, Inc.. Their ownership of the company has seen a move of 0.00% throughout the last quarter.

What Analysts Say About Tarena International, Inc.

While it’s rarely a good idea to blindly follow the thoughts of analysts, it is a good idea to consider their thoughts when validating your own opinions when it comes to making investment decisions in the service industry. Here are the most recent moves that we have seen from analysts as it relates to TEDU.

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Nov-21-18DowngradeJefferiesHold → Underperform
Jun-07-18DowngradeCredit SuisseOutperform → Neutral
Apr-04-18UpgradeCLSAOutperform → Buy
Aug-22-17DowngradeNomuraBuy → Neutral
May-16-17DowngradeGoldmanBuy → Neutral

Earnings

What have ween seen from TEDU in terms of financial results?Here’s what you’re looking for:

  • Analyst Expectations – At the moment, Wall Street analysts are expecting that Tarena International, Inc. will create earnings per diluted share in the amount of -0.33, with -0.60 to be announced in the earnings announcement for the current quarter. Although this information is not tide to earnings, because we are talking about Wall St. analysts, the stock is currently rated a 3.90 when rated on a scale from 1 to 5 where 1 is the worst possible analyst rating and 5 is the best possible.
  • 5-Year Sales – Over the last 5 years, Tarena International, Inc. has created a change in sales that comes to a total of 89.00%. Earnings per diluted share through the last half decade have generated movement in the amount of 52.69%.
  • Quarter Over Quarter – In terms of quarter over quarter earnings data, or Q/Q data as it is often referred to as in the world of humans, the company has experienced a change in earnings in the amount of -343.00%. Tarena International, Inc. has also experienced movement when it comes to revenue that comes to a total of -0.30%.

What’s Going On With Share Counts?

Investors seem to like to know the total numbers of shares both outstanding and available. When it comes to Tarena International, Inc., currently there are 52.71M with a float of 15.30M. This means that of the total of 52.71M shares of TEDU that are out there today, 15.30M are able to trade hands by the public.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to TEDU, the short percent of the float is 2.81%.

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read original article at https://iwatchmarkets.com/2019/05/18/tarena-international-inc-tedu-stock-why-its-headed-for-the-bottom/