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

Youdao, Inc. Unsponsored ADR (NYSE:DAO)’s share 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 traded.

Analysts Set New Price Targets

DAO has been the topic of several analyst reports. Wall Street Zen raised shares of Youdao from a “hold” rating to a “buy” rating in a research report on Saturday, April 18th. Citigroup raised shares of Youdao from a “hold” rating to a “buy” rating in a research report on Thursday, February 12th. One equities research analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Hold”.

Youdao Price Performance

The stock’s fifty day simple moving average is $10.74 and its 200-day simple moving average is $10.33. The company has a market capitalization of $1.48 billion, a P/E ratio of 94.65 and a beta of 0.57.

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

Institutional Investors Weigh In On Youdao

An institutional investor recently raised its position in Youdao stock. Public Employees Retirement System of Ohio raised its position in shares of Youdao, Inc. Unsponsored ADR (NYSE:DAO) by 35.9% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 29,286 shares of the company’s stock after acquiring an additional 7,729 shares during the period. Public Employees Retirement System of Ohio’s holdings in Youdao were worth $291,000 as of its most recent SEC filing. 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.