Youdao, Inc. Unsponsored ADR (NYSE: DAO) reported a notable decrease in short interest for January 2024. As of January 30, the total short interest stood at 587,979 shares, marking a decline of 17.2% from the previous total of 709,963 shares on January 15. Currently, 0.9% of the company’s shares are sold short, with a days-to-cover ratio of 4.3 days based on an average trading volume of 135,284 shares.
In trading on January 30, shares of Youdao rose by $0.10, reaching $9.38. The trading volume that day was 80,306 shares, compared to the average volume of 106,892 shares. The company, with a market capitalization of $1.12 billion, has a price-to-earnings (P/E) ratio of 72.12 and a beta of 0.36. Over the past year, Youdao’s stock has fluctuated between a low of $6.30 and a high of $12.95.
Recent Earnings and Analyst Ratings
Youdao recently announced its quarterly earnings on February 11, 2024. The company reported earnings per share (EPS) of $0.07, surpassing analysts’ expectations of $0.04 by $0.03. Revenue for the quarter was $223.64 million, exceeding the anticipated $211.46 million. The firm recorded a net margin of 1.81% and a negative return on equity of 6.41%.
Analysts have provided mixed assessments on Youdao’s stock. On February 12, Citigroup upgraded Youdao from a “hold” to a “buy” rating. In contrast, Weiss Ratings reaffirmed a “sell (d+)” rating on December 22, 2023. Additionally, Wall Street Zen downgraded Youdao from a “buy” to a “hold” rating on November 30, 2023. At present, one investment analyst has issued a Buy rating, while another analyst has assigned a Sell rating, leading to an average rating of “Hold” according to data from MarketBeat.
Company Overview
Based in Beijing, China, Youdao, Inc. was established in 2006 as a subsidiary of NetEase. The company went public on the New York Stock Exchange in October 2019, marking a pivotal moment in its evolution as a provider of intelligent learning and knowledge services. Youdao leverages cloud computing, artificial intelligence, and big data analytics to create a personalized learning ecosystem tailored to individual and organizational needs. Its flagship offerings include a suite of digital dictionaries and translation tools, prominently featuring the Youdao Dictionary app and translation engine.
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