Youdao (NYSE:DAO) Trading 7.8% Higher - What's Next?

Key Points

• Youdao's share price rose 7.8% to $10.52 during trading, despite a 74% decline in trading volume.
• Analysts at Wall Street Zen upgraded Youdao from a “hold” to a “buy” rating on August 9th.
• The company reported a loss of ($0.02) earnings per share for the last quarter, with revenue significantly below expectations at $197.82 million.

Youdao, Inc. Unsponsored ADR (NYSE:DAO - Get Free Report)'s stock price rose 7.8% during trading on Friday . The stock traded as high as $9.94 and last traded at $10.52. Approximately 31,633 shares traded hands during mid-day trading, a decline of 74% from the average daily volume of 122,636 shares. The stock had previously closed at $9.76.

Analysts Set New Price Targets

Separately, Wall Street Zen cut Youdao from a "buy" rating to a "hold" rating in a report on Sunday.

Youdao Stock Performance

The company's 50-day moving average price is $8.80 and its 200 day moving average price is $8.68. The stock has a market cap of $1.12 billion, a PE ratio of 33.68 and a beta of 0.24.

Youdao (NYSE:DAO - Get Free Report) last released its quarterly earnings results on Thursday, August 14th. The company reported ($0.02) EPS for the quarter. The firm 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 11.98%.

Institutional Investors Weigh In On Youdao

Institutional investors have recently added to or reduced their stakes in the company. Walleye Capital LLC raised its stake in shares of Youdao by 226.1% in the 1st quarter. Walleye Capital LLC now owns 176,599 shares of the company's stock valued at $1,347,000 after buying an additional 122,450 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. lifted its stake in Youdao by 83.5% in the 1st quarter. Connor Clark & Lunn Investment Management Ltd. now owns 137,456 shares of the company's stock valued at $1,049,000 after purchasing an additional 62,568 shares during the last quarter. Marshall Wace LLP bought a new position in Youdao during the 4th quarter worth approximately $479,000. Vident Advisory LLC increased its position in shares of Youdao by 190.2% during the first quarter. Vident Advisory LLC now owns 57,192 shares of the company's stock worth $436,000 after acquiring an additional 37,485 shares in the last quarter. Finally, Renaissance Technologies LLC raised its stake in shares of Youdao by 3.3% during the 4th quarter. Renaissance Technologies LLC now owns 57,100 shares of the company's stock worth $423,000 after purchasing an additional 1,800 shares during the period. 21.91% of the stock is currently owned by institutional investors and hedge funds.

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.