Youdao (NYSE:DAO) Trading Up 6% - Still a Buy?

Key Points

• Youdao shares jumped about 6% to $9.97 on Monday (from a $9.41 close), but trading was light at roughly 24,678 shares—down 74% from average volume.
• Analyst sentiment is mixed: Citigroup upgraded DAO to a "Buy," yet MarketBeat's consensus remains "Hold" with one Buy and one Sell rating.
• Quarterly results beat estimates: Youdao reported $0.07 EPS vs. $0.04 expected and $223.6M revenue vs. $211.5M, while the company has a market cap of about $1.18B and a P/E near 76.

Shares of Youdao, Inc. Unsponsored ADR (NYSE:DAO - Get Free Report) were up 6% on Monday . The company traded as high as $9.99 and last traded at $9.97. Approximately 24,678 shares were traded during trading, a decline of 74% from the average daily volume of 95,933 shares. The stock had previously closed at $9.41.

Analysts Set New Price Targets

Several equities research analysts have recently commented on DAO shares. Citigroup upgraded Youdao from a "hold" rating to a "buy" rating in a report on Thursday, February 12th. Weiss Ratings reissued a "sell (d+)" rating on shares of Youdao in a research report on Monday, December 22nd. One research analyst has rated the stock with a Buy rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Hold".

Youdao Trading Up 5.4%

The firm has a market cap of $1.18 billion, a P/E ratio of 76.31 and a beta of 0.48. The company's 50-day moving average is $10.04 and its two-hundred day moving average is $10.15.

Youdao (NYSE:DAO - Get Free Report) last issued its quarterly earnings data on Thursday, February 12th. The company reported $0.07 EPS for the quarter, topping the consensus estimate of $0.04 by $0.03. The firm had revenue of $223.64 million during the quarter, compared to the consensus estimate of $211.46 million. Youdao had a negative return on equity of 6.41% and a net margin of 1.81%.

Hedge Funds Weigh In On Youdao

An institutional investor recently raised its position in Youdao stock. Public Employees Retirement System of Ohio grew its holdings in shares of Youdao, Inc. Unsponsored ADR (NYSE:DAO - Free Report) by 35.9% in the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 29,286 shares of the company's stock after purchasing an additional 7,729 shares during the quarter. Public Employees Retirement System of Ohio's holdings in Youdao were worth $291,000 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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