Chen Xiangdong entity adds 200K Gaotu (NYSE: GOTU) ADS
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Gaotu Techedu Inc. disclosed that 200,000 ADS were acquired in an open-market purchase at $2.235 per ADS. The transaction was carried out through Ebetter International Group Limited, an entity associated with CEO Chen Xiangdong, and is reported as indirect ownership.
Following this purchase, indirect holdings reported for this entity increased to 7,714,529 ADS. Each ADS represents an interest in Gaotu Techedu’s Class A ordinary shares, with every three ADSs corresponding to two Class A ordinary shares.
Positive
- None.
Negative
- None.
Insider Trade Summary
Net Buyer: 200,000 shares ($447,000)
Net Buy
1 txn
Insider
Chen Xiangdong
Role
CEO
Bought
200,000 shs ($447K)
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Purchase | ADS | 200,000 | $2.235 | $447K |
Holdings After Transaction:
ADS — 7,714,529 shares (Indirect, Ebetter International Group Limited)
Footnotes (1)
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Key Figures
ADS purchased: 200,000 ADS
Purchase price: $2.235 per ADS
Indirect ADS holdings after trade: 7,714,529 ADS
+1 more
4 metrics
ADS purchased
200,000 ADS
Open-market purchase on 2026-06-11
Purchase price
$2.235 per ADS
Open-market transaction
Indirect ADS holdings after trade
7,714,529 ADS
Total indirect position following transaction
ADS-to-share ratio
3 ADS : 2 Class A shares
Footnote conversion ratio
Key Terms
ADS, open-market purchase, indirect ownership, Class A ordinary shares, +1 more
5 terms
ADS financial
"Every three ADSs represent two Class A ordinary shares."
Ads are paid promotional messages a company places across media — online, on TV, in print, or on social platforms — to attract customers, explain products, or shape public perception. For investors, ads matter because they drive sales growth, affect how much a company must spend to win customers, and influence brand strength and long-term value. Ads can also create regulatory or reputational risk if claims are misleading, which can affect profits and stock price.
open-market purchase financial
"transaction_action: "open-market purchase""
An open-market purchase is when an investor or a company buys shares on a public stock exchange at the going market price, rather than through a private deal. It matters to investors because these purchases change how many shares are available, can push the stock price up or signal confidence from large buyers, and often affect per-share metrics like earnings—think of it like someone buying lots of apples off a grocery shelf, reducing supply and potentially raising the price.
indirect ownership financial
"ownership_type: "indirect" and nature_of_ownership: "Ebetter International Group Limited""
Form 4 regulatory
"INSIDER FILING DATA (Form 4):"
Form 4 is a official document that company insiders, such as executives or major shareholders, file with regulators whenever they buy or sell company shares. It provides transparency about how those with inside knowledge are trading, helping investors see if insiders are confident in the company's prospects or may be selling for personal reasons. This information can influence investor decisions by revealing insiders' perspectives on the company's value.
FAQ
What insider transaction did Gaotu Techedu (GOTU) report for Chen Xiangdong?
Gaotu Techedu reported an entity associated with CEO Chen Xiangdong bought 200,000 ADS in an open-market purchase. The filing shows the transaction as indirect ownership through Ebetter International Group Limited at a price of $2.235 per ADS.
At what price were the 200,000 Gaotu Techedu (GOTU) ADS purchased?
The 200,000 Gaotu Techedu ADS were purchased at $2.235 per ADS. This price comes from an open-market transaction disclosed in the Form 4 and applies to all ADS in the reported trade.
How many Gaotu Techedu (GOTU) ADS are held after this insider transaction?
After the transaction, indirect holdings reported in the filing total 7,714,529 ADS. This figure reflects the position attributed to Ebetter International Group Limited following the 200,000 ADS open-market purchase.
Who actually holds the Gaotu Techedu (GOTU) ADS from this Form 4 transaction?
The ADS are held by Ebetter International Group Limited, an entity associated with CEO Chen Xiangdong. The filing classifies the position as indirect ownership, meaning the shares are not registered in his personal name.