Youdao (NYSE:DAO) Stock Jumps 5.7% - What's Next?

Key Points

• Youdao shares rose 5.7% to approximately $19.15, though trading volume was 74% below the average session volume.
• Analyst sentiment improved, with upgrades to Buy and Hold ratings; the stock has a consensus rating of Moderate Buy and a $22.00 target price.
• Youdao reported quarterly EPS of $0.11, beating the $0.02 estimate, but revenue of $215.91 million fell short of the $229.02 million consensus forecast.

Youdao, Inc. Unsponsored ADR (NYSE:DAO - Get Free Report) was up 5.7% on Wednesday. The company traded as high as $18.88 and last traded at $19.1540. 20,990 shares changed hands during trading, a decline of 74% from the average session volume of 79,306 shares. The stock had previously closed at $18.12.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the stock. Weiss Ratings upgraded shares of Youdao from a "sell (d+)" rating to a "hold (c-)" rating in a report on Thursday, October 8th. Wall Street Zen upgraded Youdao from a "hold" rating to a "buy" rating in a research note on Saturday, August 22nd. Finally, Citigroup lifted 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 equities research analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, Youdao presently has an average rating of "Moderate Buy" and a consensus target price of $22.00.

Youdao Stock Performance

The company's 50-day moving average is $16.02 and its 200 day moving average is $13.52. The company has a market capitalization of $2.28 billion, a PE ratio of 94.75 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, topping the consensus estimate of $0.02 by $0.09. The business had revenue of $215.91 million during the quarter, compared to analysts' expectations of $229.02 million. Youdao had a net margin of 2.71% and a negative return on equity of 8.46%.

Hedge Funds Weigh In On Youdao

An institutional investor recently bought a new stake 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 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm bought 28,104 shares of the company's stock, valued at approximately $346,000. 21.91% of the stock is owned by institutional investors and hedge funds.

About Youdao

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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