Weiss Ratings Reiterates Sell (D+) Rating for Youdao (NYSE:DAO)

Key Points

• Weiss Ratings has reiterated a "Sell (D+)" rating for Youdao (NYSE:DAO), highlighting ongoing concerns about the company's stock performance.
• In addition, Wall Street Zen downgraded Youdao from a "Buy" to a "Hold" rating, indicating a cautious outlook among analysts.
• Despite a recent stock increase of 2.9%, Youdao reported a negative earnings per share of ($0.02) and fell short of revenue estimates, raising red flags for investors.

Youdao (NYSE:DAO - Get Free Report)'s stock had its "sell (d+)" rating reiterated by equities researchers at Weiss Ratings in a research report issued on Friday,Weiss Ratings reports.

Separately, Wall Street Zen cut Youdao from a "buy" rating to a "hold" rating in a research note on Sunday, August 17th. One research analyst has rated the stock with a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Youdao has a consensus rating of "Reduce".

Youdao Stock Up 2.9%

NYSE DAO traded up $0.31 during trading hours on Friday, hitting $10.95. 144,779 shares of the company were exchanged, compared to its average volume of 116,860. The stock has a 50-day moving average price of $9.60 and a 200 day moving average price of $8.97. Youdao has a 52 week low of $4.54 and a 52 week high of $11.82. The stock has a market cap of $1.31 billion, a PE ratio of 39.10 and a beta of 0.36.

Youdao (NYSE:DAO - Get Free Report) last issued its quarterly earnings data on Thursday, August 14th. The company reported ($0.02) earnings per share for the quarter. Youdao had a negative return on equity of 12.10% and a net margin of 4.05%.The company had revenue of $197.82 million for the quarter, compared to the consensus estimate of $1.38 billion.

Institutional Trading of Youdao

A number of large investors have recently modified their holdings of the company. Public Employees Retirement System of Ohio boosted its holdings in shares of Youdao by 34.8% in the second quarter. Public Employees Retirement System of Ohio now owns 21,557 shares of the company's stock valued at $185,000 after purchasing an additional 5,565 shares during the period. Walleye Trading LLC purchased a new stake in shares of Youdao in the first quarter valued at approximately $115,000. Vident Advisory LLC boosted its holdings in shares of Youdao by 190.2% in the first quarter. Vident Advisory LLC now owns 57,192 shares of the company's stock valued at $436,000 after purchasing an additional 37,485 shares during the period. Connor Clark & Lunn Investment Management Ltd. boosted its holdings in shares of Youdao by 83.5% in the first quarter. Connor Clark & Lunn Investment Management Ltd. now owns 137,456 shares of the company's stock valued at $1,049,000 after purchasing an additional 62,568 shares during the period. Finally, Walleye Capital LLC boosted its holdings in shares of Youdao by 226.1% in the first quarter. Walleye Capital LLC now owns 176,599 shares of the company's stock valued at $1,347,000 after purchasing an additional 122,450 shares during the period. Hedge funds and other institutional investors own 21.91% of the company's stock.

Youdao Company Profile

Youdao, Inc, an internet technology company, provides online services in the field of content, community, communication, and commerce in China. It operates through three segments: Learning Services, Smart Devices, and Online Marketing Services. The company provides various learning content, applications, and solutions, which cover topics and target people from various age groups for their learning needs through its websites and mobile applications.

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