TAL Education Group (NYSE:TAL) Stock Suddenly Jumps 9%: Here is Why
In recent times, the fear of tougher regulations had resulted in difficult days for Chinese private education company stocks. However, the current strength that is being seen in the Chinese stock market has resulted in a rally in some of those stocks and one of the beneficiaries is the TAL Education Group (NYSE:TAL) stock.
Market Stats
On Thursday, TAL stock soared 8.65% at $4.27 with more than 24.35 million shares, compared to its average volume of 17.50 million shares. The stock has moved within a range of $4.0702 – 4.3900 after opening the trade at $4.08.
Recent Development
Yesterday, the TAL stock was in the middle of a strong rally and ended the day with gains of as much as 8% as investors piled on to the stock in a big way. The change in outlook about the education sector has been triggered by reports from earlier on this week which stated that the Chinese authorities could issue licenses for companies like TAL, which are involved in the after school tutoring space.
In recent weeks, TAL and other stocks in the Chinese private education sector have experienced considerable volatility due to the regulatory uncertainties. If fact, in recent months it had also emerged that the Chinese authorities might bring in a law to turn these companies into not for profit entities and that had proven to be another major factor behind the volatility in the sector. At this point, investors could keep the TAL stock in their watch lists.
Key Quote
“On behalf of TAL Education Group, I would like to express my sincere gratitude to Rong for his dedication and valuable contribution to the Company during his 7-year tenure as CFO. Rong’s professional expertise, leadership, integrity and fairness will be missed. We wish him the best in his future endeavors,” said Mr. Bangxin Zhang, Founder and Chief Executive Officer of TAL. “We are confident that there will be a smooth transition as Alex will serve as the Company’s CFO with his valuable expertise and experiences and that the Company will be able to drive its business growth under the continued leadership of Alex.”
Traders Corner
TAL stock is trading below the 20-Day and 50-Day Moving averages of $4.29 and $4.61 respectively. Moreover, the stock is trading above the 200-Day moving average of $33.58. The stock is down 12% in the past month.
