Youdao (NYSE:DAO) Trading Down 7.5% - Should You Sell?

Key Points

• Youdao shares fell 7.5% to about $16.60, with trading volume down 93% from the average session volume.
• Analyst sentiment is mixed: one analyst rates the stock Buy and another Sell, resulting in a consensus Hold rating. Recent reports included a downgrade from Buy to Hold and a slight upgrade within the Sell category.
• Youdao met quarterly earnings expectations at $0.05 per share, but revenue of $195.52 million fell short of estimates. The company has a $2.05 billion market capitalization, a high P/E ratio of 189.24, and institutional investors own 21.91% of its shares.

Youdao, Inc. Unsponsored ADR (NYSE:DAO - Get Free Report) shares traded down 7.5% during trading on Monday . The stock traded as low as $16.41 and last traded at $16.5960. 5,923 shares were traded during trading, a decline of 93% from the average session volume of 83,617 shares. The stock had previously closed at $17.95.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on DAO shares. Weiss Ratings upgraded shares of Youdao from a "sell (d)" rating to a "sell (d+)" rating in a research report on Friday, July 17th. Wall Street Zen downgraded shares of Youdao from a "buy" rating to a "hold" rating in a research report on Saturday, May 23rd. One investment analyst has rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to MarketBeat, Youdao currently has a consensus rating of "Hold".

Youdao Price Performance

The firm has a market capitalization of $2.05 billion, a price-to-earnings ratio of 189.24 and a beta of 0.59. The business's 50 day moving average price is $14.13 and its 200-day moving average price is $11.86.

Youdao (NYSE:DAO - Get Free Report) last announced its quarterly earnings data on Thursday, May 21st. The company reported $0.05 earnings per share for the quarter, meeting analysts' consensus estimates of $0.05. The company had revenue of $195.52 million for the quarter, compared to analyst estimates of $201.43 million. Youdao had a negative return on equity of 4.51% and a net margin of 1.19%.

Institutional Investors Weigh In On Youdao

An institutional investor recently bought a new stake in Youdao stock. NetEase Inc. purchased a new stake in Youdao, Inc. Unsponsored ADR (NYSE:DAO - Free Report) in the second quarter, according to the company in its most recent filing with the SEC. The firm purchased 2,898,293 shares of the company's stock, valued at approximately $35,649,004,000. Youdao makes up about 4.7% of NetEase Inc.'s investment portfolio, making the stock its 2nd biggest holding. NetEase Inc. owned 2.41% of Youdao at the end of the most recent quarter. Hedge funds and other 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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