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

Key Points

• Youdao has been upgraded from a "hold" to a "buy" rating by Wall Street Zen, reflecting increased analyst confidence in the company's prospects.
• The company's stock opened at $8.79 and has seen a 52-week range between $3.00 and $11.82, with a market capitalization of $1.05 billion.
• Youdao reported an earnings miss with $0.09 EPS for the last quarter, falling short of analysts' expectations of $0.21 EPS.

Youdao (NYSE:DAO - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "hold" rating to a "buy" rating in a note issued to investors on Saturday.

Youdao Stock Performance

Shares of Youdao stock traded down $0.02 during trading hours on Friday, hitting $8.77. The company's stock had a trading volume of 77,762 shares, compared to its average volume of 120,809. Youdao has a twelve month low of $3.00 and a twelve month high of $11.82. The firm has a fifty day moving average of $8.76 and a 200-day moving average of $8.61. The stock has a market cap of $1.05 billion, a price-to-earnings ratio of 48.69 and a beta of 0.24.

Youdao (NYSE:DAO - Get Free Report) last announced its quarterly earnings results on Thursday, May 15th. The company reported $0.09 EPS for the quarter, missing the consensus estimate of $0.21 by ($0.12). Youdao had a net margin of 2.67% and a negative return on equity of 6.87%. The business had revenue of $191.74 million during the quarter, compared to analyst estimates of $1.30 billion.

Hedge Funds Weigh In On Youdao

Several large investors have recently modified their holdings of the business. Public Employees Retirement System of Ohio lifted its stake in Youdao by 754.1% during the 4th quarter. Public Employees Retirement System of Ohio now owns 9,421 shares of the company's stock worth $70,000 after acquiring an additional 8,318 shares in the last quarter. Walleye Trading LLC acquired a new position in Youdao during the 1st quarter worth about $115,000. Jane Street Group LLC acquired a new position in Youdao during the 4th quarter worth about $119,000. Vident Advisory LLC lifted its stake in Youdao by 35.6% during the 4th quarter. Vident Advisory LLC now owns 19,707 shares of the company's stock worth $146,000 after acquiring an additional 5,170 shares in the last quarter. Finally, Bank of America Corp DE lifted its stake in Youdao by 13,310.0% during the 4th quarter. Bank of America Corp DE now owns 32,050 shares of the company's stock worth $237,000 after acquiring an additional 31,811 shares in the last quarter. Institutional investors and hedge funds own 21.91% of the company's stock.

About Youdao

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.