Youdao (NYSE:DAO) Trading Up 1.2% - Here's What Happened

Key Points

• Youdao (NYSE:DAO) shares experienced a 1.2% increase in price, closing at $8.82 after trading as high as $8.88, with a trading volume up by 33% compared to the average.
• Wall Street analysts have downgraded Youdao from a "buy" rating to a "hold" rating, following disappointing earnings results that showed an earnings per share of $0.09, missing expectations of $0.21.
• Institutional investors hold 21.91% of Youdao's shares, with several hedge funds significantly increasing their positions during the first quarter.

Youdao, Inc. Unsponsored ADR (NYSE:DAO - Get Free Report) shares shot up 1.2% during trading on Tuesday . The stock traded as high as $8.88 and last traded at $8.82. 56,194 shares changed hands during mid-day trading, an increase of 33% from the average session volume of 42,284 shares. The stock had previously closed at $8.71.

Analyst Upgrades and Downgrades

Separately, Wall Street Zen lowered Youdao from a "buy" rating to a "hold" rating in a report on Thursday, May 22nd.

Youdao Price Performance

The company has a market capitalization of $1.04 billion, a PE ratio of 48.33 and a beta of 0.24. The company has a 50-day moving average of $8.79 and a two-hundred day moving average of $8.52.

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

Hedge Funds Weigh In On Youdao

Large investors have recently made changes to their positions in the business. Bank of America Corp DE lifted its position in shares of Youdao by 13,310.0% in the fourth quarter. Bank of America Corp DE now owns 32,050 shares of the company's stock valued at $237,000 after acquiring an additional 31,811 shares in the last quarter. Jane Street Group LLC purchased a new position in shares of Youdao in the fourth quarter valued at about $119,000. Public Employees Retirement System of Ohio lifted its position in shares of Youdao by 754.1% in the fourth quarter. Public Employees Retirement System of Ohio now owns 9,421 shares of the company's stock valued at $70,000 after acquiring an additional 8,318 shares in the last quarter. Norges Bank purchased a new position in shares of Youdao in the fourth quarter valued at about $715,000. Finally, Walleye Capital LLC purchased a new position in shares of Youdao in the fourth quarter valued at about $401,000. 21.91% of the stock is currently owned by hedge funds and other institutional investors.

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.