Youdao (NYSE:DAO) Shares Down 4.2% - Here's What Happened

Key Points

• Youdao's shares fell 4.2% during mid-day trading, with the stock last priced at $9.63 after hitting a low of $9.75.
• Wall Street Zen downgraded Youdao's rating from "buy" to "hold" in a recent report, impacting investor sentiment.
• In its latest earnings report, Youdao reported an earnings per share (EPS) of ($0.02) and significantly missed revenue expectations, reporting $197.82 million against projected earnings of $1.38 billion.

Youdao, Inc. Unsponsored ADR (NYSE:DAO - Get Free Report)'s stock price fell 4.2% during mid-day trading on Monday . The company traded as low as $9.75 and last traded at $9.63. 29,584 shares changed hands during mid-day trading, a decline of 76% from the average session volume of 122,856 shares. The stock had previously closed at $10.05.

Analyst Upgrades and Downgrades

Separately, Wall Street Zen cut Youdao from a "buy" rating to a "hold" rating in a research note on Sunday, August 17th. One investment analyst has rated the stock with a Hold rating, According to MarketBeat.com, the company has an average rating of "Hold".

Youdao Stock Performance

The company has a 50 day moving average of $8.83 and a two-hundred day moving average of $8.70. The stock has a market capitalization of $1.08 billion, a PE ratio of 32.39 and a beta of 0.24.

Youdao (NYSE:DAO - Get Free Report) last posted its quarterly earnings data on Thursday, August 14th. The company reported ($0.02) earnings per share (EPS) for the quarter. The company had revenue of $197.82 million for the quarter, compared to analyst estimates of $1.38 billion. Youdao had a net margin of 4.05% and a negative return on equity of 12.10%.

Institutional Trading of Youdao

Several large investors have recently added to or reduced their stakes in the company. Public Employees Retirement System of Ohio boosted its holdings in shares of Youdao by 754.1% in the 4th 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 during the last quarter. Walleye Trading LLC purchased a new position in shares of Youdao during the 1st quarter valued at about $115,000. Jane Street Group LLC acquired a new stake in Youdao during the fourth quarter worth about $119,000. Vident Advisory LLC increased its holdings in shares of Youdao by 35.6% during the 4th quarter. Vident Advisory LLC now owns 19,707 shares of the company's stock valued at $146,000 after purchasing an additional 5,170 shares in the last quarter. Finally, Bank of America Corp DE increased its holdings in 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 buying an additional 31,811 shares in the last quarter. Hedge funds and other institutional investors own 21.91% of the company's stock.

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.