Wall Street Zen Upgrades Youdao (NYSE:DAO) to Buy

Key Points

• Wall Street Zen upgraded Youdao (NYSE:DAO) from a "hold" to a "buy"; Citigroup also recently upgraded the stock, though MarketBeat's consensus rating remains "Hold."
• Youdao beat fourth-quarter estimates on Feb. 12 with $0.07 EPS vs. $0.04 expected and $223.6M revenue vs. $211.5M expected, while reporting a negative return on equity (-6.41%) and a slim net margin (1.81%).
• Shares opened at $10.64 with a market cap of $1.27 billion and a PE of 81.88, a 52‑week range of $7.42–$12.95, and roughly 21.9% of the stock held by institutional investors.

Youdao (NYSE:DAO - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued on Saturday.

A number of other equities analysts also recently issued reports on DAO. Citigroup raised Youdao from a "hold" rating to a "buy" rating in a research report on Thursday, February 12th. Weiss Ratings reissued a "sell (d+)" rating on shares of Youdao in a research report on Monday, December 22nd. One analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold".

Youdao Stock Down 0.2%

Shares of Youdao stock opened at $10.64 on Friday. The stock's fifty day moving average is $9.97 and its two-hundred day moving average is $10.19. The company has a market capitalization of $1.27 billion, a PE ratio of 81.88 and a beta of 0.48. Youdao has a 52 week low of $7.42 and a 52 week high of $12.95.

Youdao (NYSE:DAO - Get Free Report) last announced its quarterly earnings data on Thursday, February 12th. The company reported $0.07 EPS for the quarter, beating the consensus estimate of $0.04 by $0.03. The company had revenue of $223.64 million for the quarter, compared to the consensus estimate of $211.46 million. Youdao had a negative return on equity of 6.41% and a net margin of 1.81%.

Hedge Funds Weigh In On Youdao

A hedge fund recently raised its stake in Youdao stock. Public Employees Retirement System of Ohio lifted its position in shares of Youdao, Inc. Unsponsored ADR (NYSE:DAO - Free Report) by 35.9% during the third quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 29,286 shares of the company's stock after buying an additional 7,729 shares during the quarter. Public Employees Retirement System of Ohio's holdings in Youdao were worth $291,000 at the end of the most recent quarter. 21.91% of the stock is currently owned by hedge funds and other institutional investors.

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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