Youdao (NYSE:DAO) Stock Price Down 8.1% - Here's What Happened

Key Points

• Youdao shares fell 8.1% to $16.86 in mid-day trading, with volume 39% below the stock’s average daily level.
• Analyst views remain mixed: Citigroup reiterated a “Buy” rating, while other firms issued upgrades, leaving Youdao with a consensus “Hold” rating.
• Youdao exceeded quarterly earnings expectations with EPS of $0.11 versus $0.02 estimated, but revenue of $215.91 million came in below the $229.02 million consensus forecast.

Youdao, Inc. Unsponsored ADR (NYSE:DAO - Get Free Report)'s stock price dropped 8.1% during mid-day trading on Monday . The company traded as low as $17.11 and last traded at $16.86. 51,388 shares changed hands during mid-day trading, a decline of 39% from the average daily volume of 84,313 shares. The stock had previously closed at $18.34.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the stock. Citigroup reiterated a "buy" rating on shares of Youdao in a research note on Monday. Weiss Ratings upgraded Youdao from a "sell (d)" rating to a "sell (d+)" rating in a research report on Friday, July 17th. Finally, Wall Street Zen upgraded shares of Youdao from a "hold" rating to a "buy" rating in a research note on Saturday. One equities research analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold".

Youdao Price Performance

The stock has a 50-day moving average of $14.65 and a 200 day moving average of $12.09. The stock has a market capitalization of $2.04 billion, a price-to-earnings ratio of 84.67 and a beta of 0.59.

Youdao (NYSE:DAO - Get Free Report) last posted its quarterly earnings results on Thursday, August 20th. The company reported $0.11 earnings per share for the quarter, beating analysts' consensus estimates of $0.02 by $0.09. Youdao had a negative return on equity of 8.46% and a net margin of 2.71%.The company had revenue of $215.91 million for the quarter, compared to the consensus estimate of $229.02 million.

Institutional Investors Weigh In On Youdao

An institutional investor recently bought a new position in Youdao stock. Public Employees Retirement System of Ohio purchased a new stake in Youdao, Inc. Unsponsored ADR (NYSE:DAO - Free Report) during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 28,104 shares of the company's stock, valued at approximately $346,000. Institutional investors own 21.91% of the company's stock.

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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