The Chinese private education sector may have been in doldrums not too long ago but investors would not realise that if they look into the price action in the China Online Education Group (NYSE:COE) stock in the past week. Last Friday, the stock saw heavy action and ended up with gains of 25% for the day.
On Friday, COE stock rose 23.26% to $1.59 with more than 2.29 million shares, compared to its average volume of 288k shares. The stock moved within a range of $1.1900 – 1.6300 after opening trade at $1.19.
That took the gains made by the stock over the course of the past week to as much as 80%. The important thing for investors to remember in this regard is that there was no news about the company on Friday and hence, the whole situation can seem a bit confounding.
The last time any news emerged about the company was back on December 21 last year. At that time, it had emerged that China Online Education Group had got a notification from the New York Stock Exchange with regards to the fact that it was no longer compliant with the exchange’s rules. The non-compliance was with regards to stockholders’ equity and the company’s market capitalisation at the time. The company had been given 90 days within which it had to come up with a response with regards to its plans for regaining compliance.
COE stock is trading above the 20-Day and 50-Day Moving averages of $1.06 and $1.14 respectively. However, the stock is trading below the 200-Day moving average of $4.79.