Youdao (NYSE:DAO) Stock Price Up 8.5% - Here's Why

Key Points

• Shares jumped 8.5% to about $11.66 in mid-day trading, but volume was light — just 10,645 shares, an 88% decline from the stock's average session volume.
• Two firms, including Citigroup and Wall Street Zen, recently upgraded Youdao from "hold" to "buy", though the stock's consensus rating remains "Hold" with one Buy and one Sell on file.
• Quarterly results beat expectations (EPS $0.07 vs. $0.04 est.; revenue $223.6M vs. $211.5M est.), while the company carries a $1.36B market cap and a high PE of 86.75 despite a slim net margin of 1.81% and negative ROE.

Shares of Youdao, Inc. Unsponsored ADR (NYSE:DAO - Get Free Report) traded up 8.5% during mid-day trading on Monday . The stock traded as high as $11.60 and last traded at $11.66. 10,645 shares were traded during trading, a decline of 88% from the average session volume of 88,111 shares. The stock had previously closed at $10.75.

Analyst Ratings Changes

Several equities analysts have recently commented on DAO shares. Citigroup raised Youdao from a "hold" rating to a "buy" rating in a research note on Thursday, February 12th. Wall Street Zen raised Youdao from a "hold" rating to a "buy" rating in a research report on Saturday, April 18th. One analyst has rated the stock with a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Hold".

Youdao Stock Performance

The stock has a market cap of $1.36 billion, a PE ratio of 86.75 and a beta of 0.57. The stock's 50-day moving average is $10.27 and its two-hundred day moving average is $10.23.

Youdao (NYSE:DAO - Get Free Report) last announced its earnings results on Thursday, February 12th. The company reported $0.07 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.04 by $0.03. Youdao had a negative return on equity of 6.41% and a net margin of 1.81%.The company had revenue of $223.64 million for the quarter, compared to analyst estimates of $211.46 million.

Hedge Funds Weigh In On Youdao

An institutional investor recently raised its position in Youdao stock. Public Employees Retirement System of Ohio boosted its position in shares of Youdao, Inc. Unsponsored ADR (NYSE:DAO - Free Report) by 35.9% in the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 29,286 shares of the company's stock after acquiring an additional 7,729 shares during the quarter. Public Employees Retirement System of Ohio's holdings in Youdao were worth $291,000 at the end of the most recent quarter. 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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