Youdao (NYSE:DAO) Trading Up 5.8% - Should You Buy?

Key Points

• Youdao shares rose 5.8% to $17.23 in mid-day trading, although volume was 82% below the stock’s average daily volume.
• Analyst sentiment remains mixed: one analyst rates the stock Buy and another Sell, resulting in a consensus rating of Hold.
• Youdao matched quarterly EPS expectations at $0.05 but missed revenue estimates, reporting $195.52 million versus $201.43 million expected. NetEase recently purchased 2.9 million shares, while Youdao trades at a high P/E ratio of 194.5.

Youdao, Inc. Unsponsored ADR (NYSE:DAO - Get Free Report) rose 5.8% on Tuesday . The stock traded as high as $17.42 and last traded at $17.23. 14,845 shares were traded during mid-day trading, a decline of 82% from the average daily volume of 83,936 shares. The stock had previously closed at $16.29.

Analyst Ratings Changes

A number of research firms recently issued reports on DAO. Weiss Ratings raised Youdao from a "sell (d)" rating to a "sell (d+)" rating in a research report on Friday, July 17th. Wall Street Zen cut Youdao from a "buy" rating to a "hold" rating in a research report on Saturday, May 23rd. One equities research analyst has rated the stock with a Buy rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, Youdao has an average rating of "Hold".

Youdao Price Performance

The company's 50-day simple moving average is $14.21 and its 200-day simple moving average is $11.90. The stock has a market capitalization of $2.11 billion, a P/E ratio of 194.50 and a beta of 0.59.

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

Institutional Investors Weigh In On Youdao

An institutional investor recently bought a new stake in Youdao stock. NetEase Inc. purchased a new position in shares of Youdao, Inc. Unsponsored ADR (NYSE:DAO - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 2,898,293 shares of the company's stock, valued at approximately $35,649,004,000. Youdao comprises 4.7% of NetEase Inc.'s holdings, making the stock its 2nd biggest holding. NetEase Inc. owned approximately 2.41% of Youdao at the end of the most recent reporting period. 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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