EDU Holdings Soars as Delisting Abandoned

Updated 6/24/2025, 11:32 am ET 4 min read

New Oriental Education & Technology Group Inc.’s stock has been trading up by 12.25 percent on positive growth forecasts.

Key takeaways

EDU Holdings has opted not to proceed with its delisting and off-market buy-back plan after gathering opinions from shareholders. This change led to a rise in share prices.
The company may now conduct an on-market buy-back of up to 16.5 million shares, further stabilizing its current standing.
Despite a surge in student enrollments, EDU’s shares saw a slight decline due to other factors impacting market sentiment.

Live Update At 11:32:15 EST: On Tuesday, June 24, 2025 New Oriental Education & Technology Group Inc. Sponsored ADR representing 10 (Cayman Islands) stock [NYSE: EDU] is trending up by 12.25%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial overview

In recent reports, EDU Holdings has shown a significant uptick in student enrollments, with a 118% rise in total enrollments for the second trimester and a 33% increase in new student numbers year-on-year. However, the market has been slow to embrace this growth, with shares dipping by about 4%.

Financially speaking, EDU operates with a pretax profit margin of -0.8% and a revenue stream reaching approximately $4.31B. The price-to-earnings ratio stands at a towering 272.5, illustrating potential overvaluation, especially when coupled with a volatile price-to-sales ratio of 1.86. Besides, total assets checked in at roughly $7.53B as of the last balance sheet review.

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One critical aspect involves their debt management; EDU maintained a leverage ratio of 2, with long-term debt positioned at about $14.4M, modest in relation to their overall financial stance. The return on assets was marked slightly negative, alongside an underwhelming return on equity, signaling profitability challenges.

Market Reactions

After declaring they will not delist, EDU experienced a significant rally. The stock jumped 40% by market close, rejuvenated by confidence in the company’s decision to retain its presence on the Australian Securities Exchange. This unexpected surge speaks volumes about the robust influence shareholders’ opinions hold within corporate governance.

From a broader perspective, the market viewed the decision favorably as investors drew comfort from EDU’s continuing engagement on the stock market, paving the way for future on-market share buy-backs. The move also demonstrates trust in EDU’s growth strategies, perhaps calming some of the concerns over previous volatile financial metrics.

Meanwhile, the dominant rise in student enrollments could set a steady ground for anticipated revenue increases in the educational sector, suggesting a growth-centric trajectory that might attract more long-term investors once profit margins improve. However, until profitability stabilizes, speculative market movements might limit the overshadowing effects of positive enrollment trends.

Conclusion

EDU Holdings’ resilience shines through as it adjusts to shareholder sentiments, shunning the delisting path that had previously loomed. This strategic decision represents a unified corporate response to external feedback, showing the effectiveness of shareholder engagement. As millionaire penny stock trader and teacher Tim Sykes says, “Preparation plus patience leads to big profits.” This mantra can serve as guidance for traders watching EDU Holdings’ trajectory closely. While showroom-stopping enrollment figures may not yet have erased current reservations reflected in stock dips, they herald potential upward shifts in company valuation pending more favorable financial performance. As the company navigates these evolving dynamics, its stock trajectory awaits further insights layered atop burgeoning enrollment statistics and responsive market sentiment.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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