NetEase Inc. Acquires Shares of 2,898,293 Youdao, Inc. Unsponsored ADR $DAO

NetEase Inc. acquired a new stake in Youdao, Inc. Unsponsored ADR (NYSE:DAO) during the second quarter, according to its most recent Form 13F filing with the SEC. The fund acquired 2,898,293 shares of the company’s stock, valued at approximately $35,649,004. Youdao accounts for 0.0% of NetEase Inc.’s investment portfolio, making the stock its 2nd biggest holding. NetEase Inc. owned about 2.41% of Youdao as of its most recent filing with the SEC.

Separately, Public Employees Retirement System of Ohio raised its stake in Youdao by 35.9% in the third quarter. Public Employees Retirement System of Ohio now owns 29,286 shares of the company’s stock worth $291,000 after buying an additional 7,729 shares in the last quarter. Institutional investors own 21.91% of the company’s stock.

Youdao Trading Up 2.2%

NYSE DAO traded up $0.36 during trading hours on Friday, hitting $16.80. 47,241 shares of the company’s stock were exchanged, compared to its average volume of 84,038. The stock has a 50-day simple moving average of $15.03 and a 200 day simple moving average of $12.28. The firm has a market cap of $2.02 billion, a price-to-earnings ratio of 84.00 and a beta of 0.59. Youdao, Inc. Unsponsored ADR has a 1-year low of $8.30 and a 1-year high of $18.94.

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

Wall Street Analyst Weigh In

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

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.