Youdao (NYSE:DAO) Reaches New 52-Week High - Should You Buy?

Key Points

• Youdao shares reached a new 52-week high of $16.00 during Tuesday trading, closing near $15.89 and well above its 50-day and 200-day moving averages.
• Analyst sentiment remains mixed: one analyst rates the stock Buy and another Sell, resulting in a consensus Hold rating. The stock also trades at a high price-to-earnings ratio of 176.51.
• Youdao reported quarterly EPS of $0.05, matching estimates, but revenue of $195.52 million fell short of the $201.43 million consensus forecast. Institutional investors own 21.91% of the company, with one Ohio pension fund recently increasing its stake by 35.9%.

Youdao, Inc. Unsponsored ADR (NYSE:DAO - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $16.00 and last traded at $15.8860, with a volume of 34500 shares traded. The stock had previously closed at $15.36.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on DAO. Wall Street Zen lowered Youdao from a "buy" rating to a "hold" rating in a research report on Saturday, May 23rd. Weiss Ratings upgraded Youdao from a "sell (d)" rating to a "sell (d+)" rating in a report on Friday, July 17th. One investment analyst has rated the stock with a Buy rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold".

Youdao Stock Performance

The company has a market cap of $1.91 billion, a price-to-earnings ratio of 176.51 and a beta of 0.56. The company's 50 day moving average price is $12.65 and its 200 day moving average price is $11.33.

Youdao (NYSE:DAO - Get Free Report) last posted its earnings results on Thursday, May 21st. The company reported $0.05 EPS for the quarter, hitting the consensus estimate of $0.05. Youdao had a net margin of 1.19% and a negative return on equity of 4.51%. The firm had revenue of $195.52 million for the quarter, compared to the consensus estimate of $201.43 million.

Institutional Inflows and Outflows

An institutional investor recently raised its stake in Youdao stock. Public Employees Retirement System of Ohio lifted its stake in Youdao, Inc. Unsponsored ADR (NYSE:DAO - Free Report) by 35.9% during the third quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 29,286 shares of the company's stock after acquiring an additional 7,729 shares during the period. Public Employees Retirement System of Ohio's holdings in Youdao were worth $291,000 at the end of the most recent reporting period. 21.91% of the stock is currently owned by institutional investors and hedge funds.

About Youdao

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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