Youdao Inc. [DAO] fell -51.44% so far this year. What now?


Youdao Inc. [NYSE: DAO] gained 7.83% or 0.44 points to close at $6.06 with a heavy trading volume of 293430 shares. The company report on May 27, 2022 that Youdao Publishes First Corporate Social Responsibility Report.

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Youdao, Inc. (“Youdao” or the “Company”) (NYSE: DAO), a leading technology-focused intelligent learning company in China, today announced that it issued its first Corporate Social Responsibility (CSR) report on May 23, 2022. The CSR report outlines Youdao’s key policies and performance in 2021 in relation to Youdao’s responsibility as a corporate citizen, including its initiatives to enact positive influence on its users, employees, key stakeholders and society at large.

As part of its mission, Youdao strives to promote the development of high-quality education rooted in innovative technology and content, and to empower the industry and society with the benefits of digitalization and impactful learning scenarios.

It opened the trading session at $5.93, the shares rose to $6.14 and dropped to $5.73, the range by which the price of stock traded the whole day. The daily chart for DAO points out that the company has recorded -43.05% loss over the past six months. However, it is still -40.6% lower than its most recent low trading price.

If we look at the average trading volume of 283.90K shares, DAO reached to a volume of 293430 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Youdao Inc. [DAO]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for DAO shares is $10.89 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on DAO stock is a recommendation set at 2.40. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Morgan Stanley have made an estimate for Youdao Inc. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on March 07, 2022. While these analysts kept the previous recommendation, Citigroup raised their target price from $15 to $15.50. The new note on the price target was released on February 25, 2022, representing the official price target for Youdao Inc. stock. Previously, the target price had yet another raise from $10 to $13.50, while Daiwa Securities kept a Neutral rating on DAO stock. On August 30, 2021, analysts decreased their price target for DAO shares from 29 to 11.40.

The Average True Range (ATR) for Youdao Inc. is set at 0.78, with the Price to Sales ratio for DAO stock in the period of the last 12 months amounting to 1.11.

Trading performance analysis for DAO stock

Youdao Inc. [DAO] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 27.58. With this latest performance, DAO shares dropped by -3.81% in over the last four-week period, additionally sinking by -43.05% over the last 6 months – not to mention a drop of -73.56% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for DAO stock in for the last two-week period is set at 54.42, with the RSI for the last a single of trading hit 58.56, and the three-weeks RSI is set at 51.38 for Youdao Inc. [DAO]. The present Moving Average for the last 50 days of trading for this stock 5.88, while it was recorded at 5.54 for the last single week of trading, and 10.60 for the last 200 days.

Youdao Inc. [DAO]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Youdao Inc. [DAO] shares currently have an operating margin of -22.07 and a Gross Margin at +49.53. Youdao Inc.’s Net Margin is presently recorded at -22.30.

Youdao Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.60 and a Current Ratio set at 0.70.

An analysis of insider ownership at Youdao Inc. [DAO]

There are presently around $142 million, or 67.20% of DAO stock, in the hands of institutional investors. The top three institutional holders of DAO stocks are: ORBIS ALLAN GRAY LTD with ownership of 14,458,501, which is approximately -1.892% of the company’s market cap and around 6.93% of the total institutional ownership; CORONATION FUND MANAGERS LTD., holding 2,784,645 shares of the stock with an approximate value of $16.88 million in DAO stocks shares; and KRANE FUNDS ADVISORS LLC, currently with $11.61 million in DAO stock with ownership of nearly 9.717% of the company’s market capitalization.

Positions in Youdao Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 19 institutional holders increased their position in Youdao Inc. [NYSE:DAO] by around 776,998 shares. Additionally, 26 investors decreased positions by around 2,271,929 shares, while 5 investors held positions by with 20,312,425 shares. The mentioned changes placed institutional holdings at 23,361,352 shares, according to the latest SEC report filing. DAO stock had 13 new institutional investments in for a total of 336,111 shares, while 13 institutional investors sold positions of 265,644 shares during the same period.