Youdao (NYSE:DAO) Sets New 12-Month High - What's Next?

Key Points

• Youdao shares reached a new 52-week high, trading as high as $20.54 and closing around $20.38, up from the prior close of $19.30.
• Analyst sentiment has improved, with upgrades from Wall Street Zen and Weiss Ratings and Citigroup raising its price target to $22.00. The stock carries a “Moderate Buy” consensus rating.
• Youdao exceeded quarterly EPS expectations, reporting $0.11 versus the $0.02 consensus, though revenue of $215.91 million fell short of estimates and profitability metrics remained mixed.

Youdao, Inc. Unsponsored ADR (NYSE:DAO - Get Free Report)'s stock price reached a new 52-week high during trading on Friday. The stock traded as high as $20.54 and last traded at $20.38, with a volume of 22,254 shares trading hands. The stock had previously closed at $19.30.

Wall Street Analysts Forecast Growth

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

Youdao Stock Up 4.0%

The firm has a 50 day moving average of $16.42 and a 200 day moving average of $13.09. The firm has a market cap of $2.42 billion, a PE ratio of 100.33 and a beta of 0.52.

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

Institutional Trading of Youdao

A hedge fund recently bought a new position in Youdao stock. Public Employees Retirement System of Ohio bought a new stake in shares of Youdao, Inc. Unsponsored ADR (NYSE:DAO - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 28,104 shares of the company's stock, valued at approximately $346,000. Hedge funds and other institutional investors own 21.91% of the company's stock.

About Youdao

Youdao, Inc NYSE: DAO is an education technology company and a subsidiary of NetEase, Inc The company develops digital learning products and services designed to support students, educators and other users in China and selected international markets.

Youdao's offerings include online learning content, educational applications, translation and dictionary tools, and smart learning devices. Its product portfolio has included Youdao Dictionary, digital courses, learning platforms, intelligent tutoring tools, electronic dictionaries, learning tablets and other hardware that uses technologies such as artificial intelligence and language processing to support personalized study.

Founded in 2006, Youdao has expanded from online dictionary and translation services into a broader education technology platform.

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