Youdao (NYSE:DAO) Shares Gap Up – Should You Buy?

Youdao, Inc. Unsponsored ADR (NYSE:DAO) shares gapped up before the market opened on Thursday. The stock had previously closed at $14.65, but opened at $16.00. Youdao shares last traded at $15.27, with a volume of 630 shares.

Wall Street Analysts Forecast Growth

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

Youdao Stock Performance

The stock has a market cap of $1.80 billion, a P/E ratio of 74.63 and a beta of 0.52. The company has a 50-day simple moving average of $15.92 and a 200-day simple moving average of $13.12.

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

Institutional Trading of Youdao

A hedge fund recently bought a new position in Youdao stock. NetEase Inc. bought a new position in shares of Youdao, Inc. Unsponsored ADR (NYSE:DAO) during the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund bought 2,898,293 shares of the company’s stock, valued at approximately $35,649,004. Youdao makes up approximately 0.0% of NetEase Inc.’s portfolio, making the stock its 2nd largest position. NetEase Inc. owned approximately 2.41% of Youdao as of its most recent filing with the Securities & Exchange Commission. 21.91% of the stock is currently owned by hedge funds and other institutional investors.

Youdao Company Profile

Youdao, Inc (NYSE: DAO) is a technology company focused on providing learning, education and knowledge services. The company operates primarily in China and develops digital products designed to support language learning, academic study, professional development and the distribution of educational content.

Youdao’s offerings include online learning services, educational applications and smart learning devices. Its products have included Youdao Dictionary, translation and dictionary tools, online courses, learning platforms and hardware such as scanning translation pens and other intelligent study devices.