Youdao (NYSE:DAO) Shares Gap Up – What’s Next?

Youdao, Inc. Unsponsored ADR (NYSE:DAO)’s share price gapped up before the market opened on Friday . The stock had previously closed at $14.89, but opened at $15.48. Youdao shares last traded at $15.2950, with a volume of 1,726 shares trading hands.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on DAO. Wall Street Zen upgraded Youdao from a “hold” rating to a “buy” rating in a research note on Saturday, August 22nd. Weiss Ratings raised Youdao from a “sell (d)” rating to a “sell (d+)” rating in a report on Friday, July 17th. Finally, Citigroup upped their target price on Youdao from $14.90 to $22.00 and gave the company a “buy” rating in a research report on Monday, August 24th. One analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $22.00.

Youdao Stock Down 2.9%

The stock’s 50 day moving average price is $15.49 and its two-hundred day moving average price is $12.50. The stock has a market cap of $1.82 billion, a price-to-earnings ratio of 75.89 and a beta of 0.52.

Youdao (NYSE:DAO) last posted 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 net margin of 2.71% and a negative return on equity of 8.46%. The company had revenue of $215.91 million during the quarter, compared to the consensus estimate of $229.02 million.

Hedge Funds Weigh In On Youdao

An institutional investor recently bought a new stake in Youdao stock. Public Employees Retirement System of Ohio bought a new position in Youdao, Inc. Unsponsored ADR (NYSE:DAO) during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 28,104 shares of the company’s stock, valued at approximately $346,000. Institutional investors and hedge funds own 21.91% of the company’s stock.

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.