Why a Fund Dumped a $24 Million China Education Stock While Keeping a Big Position in TAL

1 hour ago 4

Jonathan Ponciano, The Motley Fool

Sun, May 31, 2026 astatine 2:09 PM CDT 4 min read

Tiger Pacific Capital sold retired its involvement successful New Oriental Education (NYSE:EDU), according to a May 15, 2026, SEC filing, with the estimated transaction worth astatine astir $24.48 cardinal based connected quarterly mean pricing.

What happened

According to an SEC filing dated May 15, 2026, Tiger Pacific Capital sold each 428,532 shares of New Oriental Education (NYSE:EDU) during the archetypal quarter. The estimated transaction worth was astir $24.48 million, calculated utilizing the mean closing terms for the period. The money reported nary remaining presumption successful the institution astatine quarter-end. The nett presumption change, which includes terms movement, was $23.58 million.

What other to cognize

Top holdings aft the filing:
- NYSE: TAL: $90.71 cardinal (42.3% of AUM)
- NYSE: CPNG: $35.97 cardinal (16.8% of AUM)
- NASDAQ: PDD: $27.74 cardinal (12.9% of AUM)
- NYSE: NOAH: $18.62 cardinal (8.7% of AUM)
- NASDAQ: QFIN: $12.33 cardinal (5.7% 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 backstage acquisition services including trial preparation, after-school tutoring, connection training, and online acquisition programs, with a absorption connected English and different overseas languages.
The steadfast generates gross done tuition fees from in-person and online courses, acquisition materials, and consulting services for overseas studies.
It targets students from K-12 to assemblage level, arsenic good arsenic individuals preparing for home and planetary exams successful China.

New Oriental Education is simply a starring supplier of backstage acquisition services successful China, serving a wide pupil basal done a web of schools, learning centers, and integer platforms. The institution leverages its standard and diversified offerings to code a wide scope of acquisition needs, from connection acquisition to trial preparation.

What this transaction means for investors

This merchantability yet looks little similar a verdict connected New Oriental's concern and much similar a portfolio reshuffle wrong China's acquisition sector. The biggest hint is what Tiger Pacific kept. Its largest presumption remains TAL Education, which accounts for much than 42% of assets (excluding immoderate enactment options successful an S&P-tracking ETF), suggesting the money whitethorn inactive similar the assemblage portion preferring a antithetic conveyance for that exposure.

That said, New Oriental's caller results hardly overgarment the representation of a struggling company. Third-quarter gross climbed astir 20% twelvemonth implicit twelvemonth to $1.42 billion, portion operating income jumped 45% to $180 cardinal and nett income roseate 45% to $127 million. Management highlighted maturation crossed overseas trial preparation, big education, and newer acquisition initiatives, portion continuing to integrate AI tools passim its platform. The institution is besides returning important superior to shareholders. It approved different $0.60 per ADS dividend and had already repurchased astir $184 cardinal of banal nether its buyback programme arsenic of April.

Ultimately, the stock's muted stock show whitethorn not bespeak the underlying business. New Oriental continues to turn revenue, grow margins, and make important cash, ending the 4th with much than $5.2 cardinal crossed cash, deposits, and short-term investments. A money exit tin beryllium worthy noting, but the company's operating momentum appears intact.

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