NetEase Inc. Makes New Investment in Youdao, Inc. Unsponsored ADR $DAO

NetEase Inc. bought a new stake in Youdao, Inc. Unsponsored ADR (NYSE:DAO) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor bought 2,898,293 shares of the company’s stock, valued at approximately $35,649,004,000. Youdao comprises approximately 4.7% of NetEase Inc.’s investment portfolio, making the stock its 2nd largest position.

Separately, Public Employees Retirement System of Ohio increased its stake in Youdao by 35.9% in the 3rd quarter. Public Employees Retirement System of Ohio now owns 29,286 shares of the company’s stock valued at $291,000 after buying an additional 7,729 shares during the last quarter. Institutional investors and hedge funds own 21.91% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on DAO shares. Wall Street Zen upgraded Youdao from a “hold” rating to a “buy” rating in a research note on Saturday. Weiss Ratings raised Youdao from a “sell (d)” rating to a “sell (d+)” rating in a research report on Friday, July 17th. One equities research analyst has rated the stock with a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Youdao presently has an average rating of “Hold”.

Youdao Trading Down 0.2%

Youdao stock opened at $18.30 on Monday. The business’s 50 day simple moving average is $14.65 and its 200 day simple moving average is $12.09. Youdao, Inc. Unsponsored ADR has a 12 month low of $8.30 and a 12 month high of $18.94. The company has a market cap of $2.20 billion, a price-to-earnings ratio of 91.50 and a beta of 0.59.

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

Youdao 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.