Does This $10 Million Bet on New Oriental Education Stock Signal a Potential Turnaround Ahead?
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EDU
Does This $10 Million Bet on New Oriental Education Stock Signal a Potential Turnaround Ahead?
May 05, 2026 — 06:29 pm EDT
Written by
Jonathan Ponciano for
The Motley Fool->
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Key Points
- Aubrey Capital bought 174,600 shares of EDU in the first quarter; the estimated trade size was $9.97 million.
- Meanwhile, the quarter-end position value rose by $9.89 million, reflecting valuation shift including price moves.
- The transaction represented a roughly 5% increase in 13F AUM.
- 10 stocks we like better than New Oriental Education & Technology Group ›
On May 5, 2026, Aubrey Capital Management Ltd disclosed a new position in New Oriental Education & Technology Group (NYSE:EDU), acquiring an estimated $9.97 million stake based on quarterly average pricing.
What happened
According to an SEC filing dated May 5, 2026, Aubrey Capital Management Ltd initiated a new position in New Oriental Education & Technology Group, purchasing 174,600 shares. The estimated value of this trade is $9.97 million, based on the quarterly average price between January 1 and March 31, 2026. The quarter-end position’s value rose by $9.89 million, reflecting both the share purchase and stock price movement.
What else to know
- This new position represents 5% of Aubrey Capital Management Ltd’s reportable AUM as of March 31, 2026.
- Top five holdings after the filing:- NYSE:EMBJ: $15.46 million (8.6% of AUM)
- NYSE:BABA: $14.75 million (8.2% of AUM)
- NYSE:LTM: $14.45 million (8.0% of AUM)
- NASDAQ:HTHT: $13.94 million (7.7% of AUM)
- NYSE:NU: $11.76 million (6.5% of AUM)
- As of May 4, 2026, EDU shares were priced at $53.14, up 7.6% over the past year, underperforming the S&P 500 by 18.5 percentage points.
Company overview
MetricValueMarket Capitalization$8.46 billionRevenue (TTM)$4.90 billionNet Income (TTM)$372.44 millionPrice (as of market close May 4, 2026)$53.14Company snapshot
- New Oriental Education & Technology offers private educational services, including test preparation, after-school tutoring, language training, and online education programs.
- The firm generates revenue primarily through tuition fees for in-person and online courses, as well as sales of educational materials and consulting services.
- It serves students in the People’s Republic of China seeking academic advancement, language acquisition, and overseas study opportunities.
New Oriental Education & Technology Group is a leading provider of private educational services in China, operating a broad network of schools, learning centers, and online platforms. The company’s diversified offerings span K-12 after-school tutoring, test preparation for domestic and international exams, and comprehensive language training. Its scale, brand recognition, and integrated approach to both offline and online education underpin its competitive position in the market.
What this transaction means for investors
New Oriental is quietly putting up solid growth again after a very volatile few years for this sector in China. In its latest quarter, revenue rose nearly 20% to $1.42 billion, while operating income jumped 44.8% and net income climbed 45.3% year over year. That kind of margin expansion suggests the company is getting more efficient, as it’s also getting bigger. For the first nine months of the fiscal year, revenue reached $4.13 billion, up 13%, with operating income up 27.6%.
What’s interesting is that growth is coming from newer business lines and a more diversified model, including adult education and e-commerce initiatives, as opposed to just traditional tutoring. With all that said, this buy ultimately looks like a measured bet on a recovery story rather than a chase for momentum. When a stock is lagging the broader market but still delivering steady operational improvement, stepping in can signal a view that sentiment has overshot fundamentals, and that’s seemingly what Aubrey Capital is hoping for here.
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