Youdao (NYSE:DAO) Shares Gap Up – Here’s What Happened

Youdao, Inc. Unsponsored ADR (NYSE:DAO)’s stock price gapped up prior to trading on Thursday. The stock had previously closed at $19.40, but opened at $20.00. Youdao shares last traded at $19.5650, with a volume of 2,636 shares trading hands.

Wall Street Analyst Weigh In

DAO has been the subject of several recent analyst reports. Wall Street Zen raised shares of Youdao from a “hold” rating to a “buy” rating in a report on Saturday, August 22nd. Weiss Ratings upgraded shares of Youdao from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Thursday, October 8th. Finally, Citigroup lifted their target price on shares of Youdao from $14.90 to $22.00 and gave the stock a “buy” rating in a report on Monday, August 24th. One equities research analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $22.00.

Youdao Trading Down 0.7%

The firm has a 50-day moving average of $16.98 and a two-hundred day moving average of $13.44. The firm has a market cap of $2.32 billion, a price-to-earnings ratio of 96.34 and a beta of 0.48.

Youdao (NYSE:DAO) last released its earnings results on Thursday, August 20th. The company reported $0.11 earnings per share (EPS) for the quarter, beating 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.

Institutional Investors Weigh In On Youdao

Several hedge funds and other institutional investors have recently modified their holdings of DAO. State Street Corp bought a new position in Youdao during the third quarter worth $176,000. Public Employees Retirement System of Ohio bought a new stake in Youdao in the 2nd quarter valued at $346,000. Finally, NetEase Inc. bought a new stake in Youdao in the 2nd quarter valued at $35,649,004. Institutional investors and hedge funds own 21.91% of the company’s stock.

Youdao Company Profile

Youdao, Inc. is a China-based technology company focused on learning products and services. It offers digital learning content and services, including online courses, language-learning tools and educational resources. The company’s products include Youdao Dictionary and translation tools, as well as smart learning devices such as translation pens. Youdao also provides online marketing services. Youdao originated as an internet service developed by NetEase, with its dictionary product introduced in 2007.