Youdao (NYSE:DAO) Upgraded by Wall Street Zen to "Buy" Rating

Key Points

• Wall Street Zen upgraded Youdao from “hold” to “buy,” while Weiss Ratings made a smaller improvement from “sell (d)” to “sell (d+).” Overall, analysts tracked by MarketBeat still give the stock an average “Hold” rating.
• Youdao reported quarterly earnings of $0.11 per share, exceeding the $0.02 consensus estimate, but revenue of $215.91 million fell short of the $229.02 million forecast.
• Youdao shares were trading at $18.30, up 8.5%, near their 12-month high of $18.94. Institutional investors and hedge funds own 21.91% of the company, with the Ohio public employees’ retirement fund recently increasing its stake by 35.9%.

Youdao (NYSE:DAO - Get Free Report) was upgraded by analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a note issued to investors on Saturday.

Separately, Weiss Ratings upgraded shares of Youdao from a "sell (d)" rating to a "sell (d+)" rating in a report on Friday, July 17th. One analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Youdao currently has an average rating of "Hold".

Youdao Trading Up 8.5%

DAO opened at $18.30 on Friday. The company has a market capitalization of $2.20 billion, a price-to-earnings ratio of 91.50 and a beta of 0.59. Youdao has a 12-month low of $8.30 and a 12-month high of $18.94. The business's fifty day simple moving average is $14.65 and its 200-day simple moving average is $12.07.

Youdao (NYSE:DAO - Get Free Report) last released its quarterly earnings data on Thursday, August 20th. The company reported $0.11 earnings per share for the quarter, beating the consensus estimate of $0.02 by $0.09. Youdao had a negative return on equity of 8.38% and a net margin of 2.71%.The firm had revenue of $215.91 million during the quarter, compared to the consensus estimate of $229.02 million.

Hedge Funds Weigh In On Youdao

A hedge fund recently raised its stake in Youdao stock. Public Employees Retirement System of Ohio raised its position in shares of Youdao, Inc. Unsponsored ADR (NYSE:DAO - Free Report) by 35.9% in the 3rd quarter, according to the company in its most recent disclosure with the SEC. The fund owned 29,286 shares of the company's stock after buying 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. 21.91% of the stock is owned by institutional investors and hedge funds.

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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