Youdao (NYSE:DAO) Trading Down 6.3% - Here's What Happened

Key Points

• Youdao shares fell 6.3% to about $15.36, with trading volume down 70% from the average session level.
• Analyst sentiment remains mixed: Citigroup raised its price target to $22 and rated the stock “buy,” while the overall MarketBeat consensus is “hold,” based on one Buy and one Sell rating.
• Youdao’s latest quarterly results beat earnings expectations, reporting $0.11 per share versus the $0.02 consensus, but revenue of $215.91 million fell short of the $229.02 million estimate.

Shares of Youdao, Inc. Unsponsored ADR (NYSE:DAO - Get Free Report) fell 6.3% during trading on Wednesday . The stock traded as low as $15.56 and last traded at $15.3570. 25,491 shares were traded during trading, a decline of 70% from the average session volume of 84,981 shares. The stock had previously closed at $16.39.

Wall Street Analyst Weigh In

A number of research firms recently commented on DAO. Wall Street Zen raised shares of Youdao from a "hold" rating to a "buy" rating in a research note on Saturday, August 22nd. Weiss Ratings raised shares of Youdao from a "sell (d)" rating to a "sell (d+)" rating in a research report on Friday, July 17th. Finally, Citigroup boosted their price target on Youdao from $14.90 to $22.00 and gave the stock a "buy" rating in a research report on Monday, August 24th. One equities research analyst has rated the stock with a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $22.00.

Youdao Stock Down 6.3%

The company has a market cap of $1.85 billion, a P/E ratio of 77.00 and a beta of 0.52. The firm has a fifty day moving average price of $15.32 and a 200 day moving average price of $12.42.

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

Hedge Funds Weigh In On Youdao

A hedge fund recently bought a new stake in Youdao stock. Public Employees Retirement System of Ohio purchased a new stake in shares of Youdao, Inc. Unsponsored ADR (NYSE:DAO - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the SEC. The firm purchased 28,104 shares of the company's stock, valued at approximately $346,000. Institutional investors and hedge funds own 21.91% of the company's stock.

Youdao Company Profile

Youdao, Inc NYSE: DAO, established in 2006 as a subsidiary of NetEase, is headquartered in Beijing, China. The company went public on the New York Stock Exchange in October 2019, marking a significant milestone in its development as an intelligent learning and knowledge service provider. Since its inception, Youdao has combined cloud computing, artificial intelligence and big data analytics to create an adaptive learning ecosystem designed to meet the needs of individual learners and organizations.

At the core of Youdao's offerings is its suite of digital dictionaries and translation tools, including the flagship Youdao Dictionary app and translation engine.

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