Youdao (NYSE:DAO) Stock Jumps 5.7% – What’s Next?

Youdao, Inc. Unsponsored ADR (NYSE:DAO)’s share price was up 5.7% during trading on Wednesday. The stock traded as high as $18.88 and last traded at $19.1540. Approximately 20,990 shares traded hands during trading, a decline of 74% from the average daily volume of 79,306 shares. The stock had previously closed at $18.12.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on DAO. Wall Street Zen raised Youdao from a “hold” rating to a “buy” rating in a research report on Saturday, August 22nd. Weiss Ratings raised shares of Youdao from a “sell (d+)” rating to a “hold (c-)” rating in a report on Thursday, October 8th. Finally, Citigroup lifted their price target on shares of Youdao from $14.90 to $22.00 and gave the stock a “buy” rating in a research note on Monday, August 24th. One research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $22.00.

Youdao Price Performance

The company has a market capitalization of $2.28 billion, a PE ratio of 94.75 and a beta of 0.52. The company has a 50-day moving average of $16.02 and a two-hundred day moving average of $13.52.

Youdao (NYSE:DAO) last announced its quarterly earnings data on Thursday, August 20th. The company reported $0.11 EPS for the quarter, beating the consensus estimate of $0.02 by $0.09. Youdao had a net margin of 2.71% and a negative return on equity of 8.46%. The firm had revenue of $215.91 million for the quarter, compared to the consensus estimate of $229.02 million.

Institutional Inflows and Outflows

A hedge fund recently bought a new stake in Youdao stock. NetEase Inc. acquired a new position in shares of Youdao, Inc. Unsponsored ADR (NYSE:DAO) during the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund acquired 2,898,293 shares of the company’s stock, valued at approximately $35,649,004. Youdao comprises about 0.0% of NetEase Inc.’s portfolio, making the stock its 2nd biggest position. NetEase Inc. owned about 2.41% of Youdao as of its most recent SEC filing. Hedge funds and other institutional investors own 21.91% of the company’s stock.

About Youdao

Youdao, Inc (NYSE: DAO) is a technology company focused on digital learning and knowledge services. It is a subsidiary of NetEase, Inc and develops internet-based tools that support language learning, education, translation and professional development.

The company offers online courses and learning applications covering subjects such as languages, academic preparation and professional skills. Its product portfolio has also included Youdao Dictionary, translation and writing tools, and smart learning hardware such as dictionary pens, scanning devices and other connected products designed to support students and educators.

Youdao primarily serves users in China through its online platforms, educational content and learning devices, while some of its language and translation products are available to users internationally.