Youdao (NYSE:DAO) Stock Jumps 6.1% - Should You Buy?

Key Points

• Youdao shares rose 6.1% to $16.075 during mid-day trading, though volume was about 99% below the average session volume.
• Analyst sentiment remains mixed: Citigroup raised its price target to $22 and issued a Buy rating, while the overall consensus remains Hold with a $22 average target.
• Youdao reported quarterly EPS of $0.11, beating estimates of $0.02, but revenue of $215.91 million fell short of the $229.02 million consensus estimate. NetEase also acquired 2.41% of the company, while institutions collectively own 21.91%.

Youdao, Inc. Unsponsored ADR (NYSE:DAO - Get Free Report)'s share price rose 6.1% during mid-day trading on Tuesday. The company traded as high as $15.81 and last traded at $16.0750. 771 shares traded hands during trading, a decline of 99% from the average session volume of 81,315 shares. The stock had previously closed at $15.15.

Analyst Ratings Changes

DAO has been the topic of a number of analyst reports. Citigroup lifted their price objective on Youdao from $14.90 to $22.00 and gave the company a "buy" rating in a report on Monday, August 24th. Weiss Ratings raised Youdao from a "sell (d)" rating to a "sell (d+)" rating in a research note on Friday, July 17th. Finally, Wall Street Zen upgraded Youdao from a "hold" rating to a "buy" rating in a research note on Saturday, August 22nd. One equities research analyst has rated the stock with a Buy rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $22.00.

Youdao Stock Up 2.3%

The company has a market cap of $1.93 billion, a price-to-earnings ratio of 79.88 and a beta of 0.52. The company has a fifty day simple moving average of $15.91 and a two-hundred day simple moving average of $13.23.

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

Institutional Trading of Youdao

A hedge fund recently bought a new position in Youdao stock. NetEase Inc. acquired a new position in shares of Youdao, Inc. Unsponsored ADR (NYSE:DAO - Free Report) in the 2nd quarter, according to its most recent 13F filing with the SEC. The fund acquired 2,898,293 shares of the company's stock, valued at approximately $35,649,004. Youdao comprises about 0.0% of NetEase Inc.'s investment portfolio, making the stock its 2nd largest holding. NetEase Inc. owned 2.41% of Youdao as of its most recent SEC filing. 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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