Youdao (NYSE:DAO) Stock Price Down 11.3% – Should You Sell?

Youdao, Inc. Unsponsored ADR (NYSE:DAO) dropped 11.3% during mid-day trading on Thursday . The stock traded as low as $10.78 and last traded at $10.9990. Approximately 19,485 shares were traded during mid-day trading, a decline of 77% from the average daily volume of 84,642 shares. The stock had previously closed at $12.40.

Analysts Set New Price Targets

Several research firms recently commented on DAO. Citigroup upgraded Youdao from a “hold” rating to a “buy” rating in a research report on Thursday, February 12th. Wall Street Zen upgraded Youdao from a “hold” rating to a “buy” rating in a research report on Saturday, April 18th. One analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold”.

Youdao Trading Down 5.3%

The company has a market capitalization of $1.41 billion, a price-to-earnings ratio of 89.82 and a beta of 0.57. The firm has a 50-day moving average price of $10.71 and a 200-day moving average price of $10.33.

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

Institutional Investors Weigh In On Youdao

A hedge fund recently raised its stake in Youdao stock. Public Employees Retirement System of Ohio lifted its stake in shares of Youdao, Inc. Unsponsored ADR (NYSE:DAO) by 35.9% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 29,286 shares of the company’s stock after acquiring 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 reporting period. Institutional investors 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.