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

Youdao, Inc. Unsponsored ADR (NYSE:DAO)’s stock price gapped down prior to trading on Thursday . The stock had previously closed at $12.30, but opened at $11.55. Youdao shares last traded at $12.51, with a volume of 466 shares traded.

Analysts Set New Price Targets

DAO has been the topic of several recent analyst reports. Wall Street Zen cut shares of Youdao from a “buy” rating to a “hold” rating in a report on Saturday, May 23rd. Weiss Ratings lowered shares of Youdao from a “sell (d+)” rating to a “sell (d)” rating in a report on Monday. 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.com, Youdao has an average rating of “Hold”.

Youdao Stock Up 0.5%

The company has a 50 day simple moving average of $11.81 and a 200-day simple moving average of $10.79. The stock has a market cap of $1.52 billion, a price-to-earnings ratio of 140.53 and a beta of 0.56.

Youdao (NYSE:DAO) last released its earnings results on Thursday, May 21st. The company reported $0.05 EPS for the quarter, hitting analysts’ consensus estimates of $0.05. The company had revenue of $195.52 million for the quarter, compared to the consensus estimate of $201.43 million. Youdao had a negative return on equity of 4.51% and a net margin of 1.19%.

Hedge Funds Weigh In On Youdao

A hedge fund recently raised its stake in Youdao stock. Public Employees Retirement System of Ohio raised its holdings in shares of Youdao, Inc. Unsponsored ADR (NYSE:DAO) by 35.9% in the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 29,286 shares of the company’s stock after purchasing 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.