Youdao (NYSE:DAO) Hits New 52-Week High - Time to Buy?

Key Points

• Youdao shares reached a new 52-week high of $19.50, up from a prior close of $18.12, with the stock trading above both its 50-day and 200-day moving averages.
• Analyst sentiment improved, with Citigroup raising its price target to $22.00 and assigning a Buy rating; overall coverage stands at “Moderate Buy.”
• Youdao reported quarterly EPS of $0.11, beating the $0.02 consensus estimate, although revenue of $215.91 million fell short of expectations and the company continued to post negative return on equity.

Youdao, Inc. Unsponsored ADR (NYSE:DAO - Get Free Report) shares hit a new 52-week high on Thursday. The stock traded as high as $19.50 and last traded at $19.3350, with a volume of 66,798 shares trading hands. The stock had previously closed at $18.12.

Analysts Set New Price Targets

A number of analysts recently commented on DAO shares. Citigroup lifted their target price on shares of Youdao from $14.90 to $22.00 and gave the stock a "buy" rating in a research note on Monday, August 24th. Wall Street Zen upgraded shares of Youdao from a "hold" rating to a "buy" rating in a research report on Saturday, August 22nd. Finally, Weiss Ratings raised Youdao from a "sell (d+)" rating to a "hold (c-)" rating in a report on Thursday, October 8th. One equities research analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $22.00.

Youdao Stock Performance

The business has a 50-day simple moving average of $16.06 and a 200-day simple moving average of $13.58. The company has a market cap of $2.33 billion, a price-to-earnings ratio of 86.29 and a beta of 0.52.

Youdao (NYSE:DAO - Get Free Report) last issued its quarterly earnings data on Thursday, August 20th. The company reported $0.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.02 by $0.09. Youdao had a negative return on equity of 8.46% and a net margin of 2.71%. The company had revenue of $215.91 million for the quarter, compared to analyst estimates of $229.02 million.

Institutional Trading of Youdao

A hedge fund recently bought a new position in Youdao stock. NetEase Inc. purchased a new position in Youdao, Inc. Unsponsored ADR (NYSE:DAO - Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm purchased 2,898,293 shares of the company's stock, valued at approximately $35,649,004. Youdao comprises approximately 0.0% of NetEase Inc.'s holdings, making the stock its 2nd largest position. NetEase Inc. owned 2.41% of Youdao at the end of the most recent reporting period. Hedge funds and other institutional investors own 21.91% of the company's stock.

Youdao Company Profile

Youdao, Inc NYSE: DAO is a technology company focused on digital learning and knowledge services. It is a subsidiary of NetEase, Inc and develops internet-based tools that support language learning, education, translation and professional development.

The company offers online courses and learning applications covering subjects such as languages, academic preparation and professional skills. Its product portfolio has also included Youdao Dictionary, translation and writing tools, and smart learning hardware such as dictionary pens, scanning devices and other connected products designed to support students and educators.

Youdao primarily serves users in China through its online platforms, educational content and learning devices, while some of its language and translation products are available to users internationally.

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