Youdao (NYSE:DAO) Trading Down 4.2% - What's Next?

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) shares dropped 4.2% during mid-day trading on Monday . The company traded as low as $9.75 and last traded at $9.63. Approximately 29,584 shares were traded during mid-day trading, a decline of 76% from the average daily 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 report on Sunday.

Youdao Stock Performance

The company has a 50 day simple moving average of $8.79 and a 200 day simple moving average of $8.67. The company has a market capitalization of $1.15 billion, a PE ratio of 34.13 and a beta of 0.24.

Youdao (NYSE:DAO - Get Free Report) last announced its quarterly earnings data on Thursday, August 14th. The company reported ($0.02) earnings per share (EPS) for the quarter. The firm had revenue of $197.82 million during the quarter, compared to analysts' expectations of $1.38 billion. Youdao had a net margin of 4.05% and a negative return on equity of 11.98%.

Institutional Investors Weigh In On Youdao

A number of hedge funds and other institutional investors have recently modified their holdings of DAO. Public Employees Retirement System of Ohio raised its holdings in 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 buying an additional 8,318 shares during the period. Walleye Trading LLC purchased a new stake in shares of Youdao during the first quarter worth $115,000. Jane Street Group LLC purchased a new position in Youdao in the fourth quarter valued at about $119,000. Vident Advisory LLC increased its position in Youdao by 35.6% in the 4th quarter. Vident Advisory LLC now owns 19,707 shares of the company's stock worth $146,000 after purchasing an additional 5,170 shares during the last quarter. Finally, Bank of America Corp DE raised its stake in shares of Youdao by 13,310.0% during the 4th quarter. Bank of America Corp DE now owns 32,050 shares of the company's stock worth $237,000 after purchasing an additional 31,811 shares in the last quarter. 21.91% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.