This Chinese Education Company Generated $1.4 Billion in Revenue. Why Did a Fund Sell 826,670 Shares?

1 hour ago 2

Jonathan Ponciano, The Motley Fool

Sun, May 31, 2026 astatine 2:17 PM CDT 4 min read

On May 15, 2026, Cederberg Capital disclosed successful an SEC filing that it sold 826,670 shares of New Oriental Education (NYSE:EDU) past quarter.

What happened

According to a recent SEC filing, Cederberg Capital Ltd reduced its holding successful New Oriental Education by 826,670 shares during the archetypal 4th of 2026. The quarter-end worth of the EDU presumption decreased by astir $45 million, a fig that reflects some trading and banal terms changes.

What other to cognize

Top 5 holdings aft the quarter:
- NASDAQ: NTES: $40.26 cardinal (21.6% of AUM)
- NASDAQ: PDD: $39.15 cardinal (21.0% of AUM)
- NASDAQ: ATAT: $33.15 cardinal (17.8% of AUM)
- NYSEMKT: SVM: $23.83 cardinal (12.8% of AUM)
- NASDAQ: ACMR: $23.58 cardinal (12.7% of AUM)
As of Friday, EDU shares were priced astatine $45.79, down astir 3% implicit the past twelvemonth and good underperforming the S&P 500, which is alternatively up astir 28%.

Company overview

Metric

Value

Revenue (TTM)	$5.4 billion
Net income (TTM)	$420.1 million
Dividend yield	2.5%
Price (as of Friday)	$45.79

Company snapshot

New Oriental Education & Technology Group offers trial preparation, after-school tutoring, connection training, and online acquisition services, with a absorption connected K-12 and connection exam preparation.
The steadfast generates gross chiefly done tuition fees for in-person and online courses, arsenic good arsenic acquisition materials and consulting services.
It serves students successful China preparing for home and planetary exams, with further offerings for children, precocious schoolhouse students, and big learners.

New Oriental Education is 1 of China's largest backstage acquisition providers, operating a wide web of schools and learning centers. The institution leverages its established marque and diversified work portfolio to code a wide scope of acquisition needs, from trial mentation to connection training. Its standard and integrated online-offline transportation exemplary presumption it arsenic a starring subordinate successful China's competitory acquisition sector.

What this transaction means for investors

It’s important to enactment present that Cederberg remains heavy concentrated successful Chinese net and user names, and the simplification comes contempt a 4th that showed accelerating maturation and improving profitability. New Oriental delivered third-quarter gross of $1.42 billion, up astir 20% twelvemonth implicit year, portion operating income climbed 45% to $180 cardinal and nett income roseate 45% to $127 million. Management pointed to maturation crossed overseas trial preparation, big education, and newer acquisition initiatives, which expanded 23% from a twelvemonth ago. The institution besides continues to integrate AI passim its acquisition ecosystem to amended some teaching outcomes and operating efficiency.

Importantly, New Oriental is besides returning superior to shareholders. The institution approved different dividend outgo and had repurchased astir $184 cardinal of banal nether its buyback programme arsenic of April 21.

For semipermanent investors, the much absorbing communicative whitethorn beryllium the disconnect betwixt operating show and banal performance. While the shares person lagged the broader market, New Oriental raised full-year gross guidance and finished the 4th with much than $5.2 cardinal successful cash, deposits, and short-term investments. That should bode good erstwhile sentiment improves.

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