Youdao (NYSE:DAO) Trading Down 6.3% – Should You Sell?

Youdao, Inc. Unsponsored ADR (NYSE:DAO) shares fell 6.3% during trading on Wednesday . The stock traded as low as $15.56 and last traded at $15.3570. Approximately 25,491 shares traded hands during mid-day trading, a decline of 70% from the average daily volume of 84,981 shares. The stock had previously closed at $16.39.

Analysts Set New Price Targets

Several brokerages have weighed in on DAO. Wall Street Zen raised Youdao from a “hold” rating to a “buy” rating in a research note on Saturday, August 22nd. Citigroup increased their price target on Youdao from $14.90 to $22.00 and gave the stock a “buy” rating in a research note on Monday, August 24th. Finally, Weiss Ratings raised Youdao from a “sell (d)” rating to a “sell (d+)” rating in a report on Friday, July 17th. One equities research analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $22.00.

Youdao Price Performance

The firm has a market cap of $1.87 billion, a price-to-earnings ratio of 77.70 and a beta of 0.52. The company has a fifty day moving average price of $15.49 and a two-hundred day moving average price of $12.50.

Youdao (NYSE:DAO) last released its earnings results on Thursday, August 20th. The company reported $0.11 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.02 by $0.09. Youdao had a negative return on equity of 8.46% and a net margin of 2.71%.The firm had revenue of $215.91 million for the quarter, compared to analyst estimates of $229.02 million.

Hedge Funds Weigh In On Youdao

An institutional investor recently bought a new position in Youdao stock. NetEase Inc. bought a new position in Youdao, Inc. Unsponsored ADR (NYSE:DAO) during the second quarter, according to its most recent filing with the Securities and Exchange Commission. The fund bought 2,898,293 shares of the company’s stock, valued at approximately $35,649,004. Youdao makes up about 0.0% of NetEase Inc.’s investment portfolio, making the stock its 2nd biggest position. NetEase Inc. owned 2.41% of Youdao at the end of the most recent quarter. Institutional investors own 21.91% of the company’s stock.

About Youdao

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.