Youdao (NYSE:DAO) Shares Gap Down – Should You Sell?

Youdao, Inc. Unsponsored ADR (NYSE:DAO)’s stock price gapped down before the market opened on Friday . The stock had previously closed at $11.54, but opened at $10.76. Youdao shares last traded at $11.7130, with a volume of 41,870 shares changing hands.

Analyst Ratings Changes

A number of brokerages have recently commented on DAO. Wall Street Zen upgraded Youdao from a “hold” rating to a “buy” rating in a research report on Saturday, April 18th. Citigroup upgraded Youdao from a “hold” rating to a “buy” rating in a report on Thursday, February 12th. One analyst has rated the stock with a Buy rating and one has issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold”.

Youdao Price Performance

The stock has a fifty day moving average price of $10.74 and a 200-day moving average price of $10.33. The company has a market cap of $1.48 billion, a PE ratio of 94.65 and a beta of 0.57.

Youdao (NYSE:DAO) last posted its quarterly earnings results on Thursday, May 21st. The company reported $0.05 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.05. Youdao had a net margin of 1.81% and a negative return on equity of 6.41%. The business had revenue of $195.52 million for the quarter, compared to the consensus estimate of $201.43 million.

Hedge Funds Weigh In On Youdao

A hedge fund recently raised its stake in Youdao stock. Public Employees Retirement System of Ohio boosted its holdings in shares of Youdao, Inc. Unsponsored ADR (NYSE:DAO) by 35.9% during the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (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 quarter. 21.91% of the stock is currently owned by institutional investors.

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.