Youdao (NYSE:DAO) Shares Up 1.2% - Time to Buy?

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)'s stock price rose 1.2% during mid-day trading on Tuesday . The company traded as high as $8.88 and last traded at $8.82. Approximately 56,194 shares traded hands during trading, an increase of 33% from the average daily volume of 42,284 shares. The stock had previously closed at $8.71.

Analysts Set New Price Targets

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

Youdao Price Performance

The firm has a market capitalization of $1.03 billion, a price-to-earnings ratio of 48.03 and a beta of 0.28. The business has a fifty day moving average price of $8.83 and a two-hundred day moving average price of $8.49.

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

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DAO. Norges Bank acquired a new stake in shares of Youdao during the 4th quarter valued at $715,000. Renaissance Technologies LLC lifted its holdings in Youdao by 3.3% during the fourth quarter. Renaissance Technologies LLC now owns 57,100 shares of the company's stock worth $423,000 after acquiring an additional 1,800 shares during the period. Walleye Capital LLC bought a new stake in shares of Youdao in the 4th quarter worth approximately $401,000. Marshall Wace LLP purchased a new stake in shares of Youdao during the 4th quarter valued at approximately $479,000. Finally, Jane Street Group LLC purchased a new stake in shares of Youdao in the fourth quarter worth about $119,000. 21.91% of the stock is currently owned by institutional investors.

Youdao Company Profile

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.