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EDU Holdings Soars as Delisting Abandoned

Jack KelloggAvatar
Written by Jack Kellogg Reviewed by Tim Sykes Fact-checked by Ellis Hobbs
Updated 6/24/2025, 11:32 am ET 6/24/2025, 11:32 am ET | 4 min 4 min read
EDU Holdings Soars as Delisting Abandoned Thumbnail

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

Candlestick Chart

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.

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.

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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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Jack Kellogg

He teaches webinars on Tim Sykes’ Trading Challenge He became Tim’s youngest millionaire student in 2020. Now he’s second on the Trading Challenge leaderboard with $12.9 million in career earnings. He’s a master of the 7-Step Pennystocking Framework. Jack is one of a rare breed of traders to profitably trade the entire penny stock framework.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”