Youdao (NYSE:DAO) Stock Price Down 4.4% - Time to Sell?

Key Points

• Youdao shares fell 4.4% to about $16.06 in mid-day trading, while trading volume was roughly 94% below the average session volume.
• Analyst sentiment is mixed: Wall Street Zen downgraded the stock from “Buy” to “Hold,” while the overall consensus rating is “Hold,” split between one Buy and one Sell rating.
• Youdao reported quarterly EPS of $0.05, in line with estimates, but revenue of $195.52 million fell short of the $201.43 million consensus. The stock trades at a high price-to-earnings ratio of 179.60, despite a 1.19% net margin and negative 4.51% return on equity.

Youdao, Inc. Unsponsored ADR (NYSE:DAO - Get Free Report) shares were down 4.4% during mid-day trading on Monday . The company traded as low as $16.16 and last traded at $16.0560. Approximately 5,410 shares were traded during mid-day trading, a decline of 94% from the average session volume of 85,939 shares. The stock had previously closed at $16.80.

Analyst Upgrades and Downgrades

A number of research firms recently 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 raised Youdao from a "sell (d)" rating to a "sell (d+)" rating in a research report on Friday, July 17th. One equities research analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Hold".

Youdao Price Performance

The firm has a 50-day simple moving average of $12.97 and a 200-day simple moving average of $11.45. The firm has a market capitalization of $1.95 billion, a PE ratio of 179.60 and a beta of 0.56.

Youdao (NYSE:DAO - Get Free Report) last released its quarterly earnings results on Thursday, May 21st. The company reported $0.05 EPS for the quarter, meeting 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 during the quarter, compared to analyst estimates of $201.43 million.

Institutional Trading of Youdao

An institutional investor recently raised its position in Youdao stock. Public Employees Retirement System of Ohio grew its holdings in Youdao, Inc. Unsponsored ADR (NYSE:DAO - Free Report) by 35.9% during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm 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 as of its most recent SEC filing. 21.91% of the stock is owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.