As of Wednesday, Youdao Inc.’s (NYSE:DAO) stock closed at $3.83, up from $3.59 the previous day. While Youdao Inc. has overperformed by 6.69%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, DAO fell by -75.76%, with highs and lows ranging from $16.98 to $3.03, whereas the simple moving average fell by -36.10% in the last 200 days.
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On March 07, 2022, Morgan Stanley Upgraded Youdao Inc. (NYSE: DAO) to Overweight. A report published by Citigroup on February 25, 2022, Upgraded its rating to ‘Buy’ for DAO. Daiwa Securities also Upgraded DAO shares as ‘Neutral’, setting a target price of $13.50 on the company’s shares in a report dated September 03, 2021. Morgan Stanley August 30, 2021d the rating to Equal-Weight on August 30, 2021, and set its price target from $29 to $11.40. Daiwa Securities July 27, 2021d its ‘Buy’ rating to ‘Underperform’ for DAO, as published in its report on July 27, 2021. Jefferies also rated the stock as ‘Hold’.
Analysis of Youdao Inc. (DAO)
Further, the quarter-over-quarter increase in sales is 1.10%, showing a positive trend in the upcoming months.
One of the most important indicators of Youdao Inc.’s future performance is equity, which can be evaluated using several well-rounded types of analysis and research techniques. Taking into account the quick ratio of the company, currently set at 0.50, you can see that the company can cover any debts it may have, which can easily be seen in the annual report of the company.
For any stock, average volume can also provide valuable insight into volatility, and DAO is recording 160.00K average volume. On a monthly basis, the volatility of the stock is set at 8.93%, whereas on a weekly basis, it is put at 8.61%, with a loss of -0.78% over the past seven days. Furthermore, long-term investors anticipate a median target price of $6.22, showing growth from the present price of $3.83, which can serve as yet another indication of whether DAO is worth investing in or should be passed over.
How Do You Analyze Youdao Inc. Shares?
Along with the fundamentals, it is also important to consider how many employees own shares of the company. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 3.34%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 63.10% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.
Are institutional investors increasing their holdings in DAO shares?
The recent increase in stakes in DAO appears to be a result of several institutional investors and hedge funds increasing their positions. Orbis Investment Management Ltd.’s position in DAO has increased by 2.57% in the first quarter. The company now owns 15,186,517 shares of the stock, with a value of $51.48 million, following the purchase of 381,193 additional shares during the last quarter. Coronation Asset Management made another decreased to its shares in DAO during the first quarter, downing its stake by -6.13%. During the last quarter, the company dropped down -155,192 additional shares for a total stake of worth $8.05 million, bringing number of shares owned by the company to 2,374,623.
During the first quarter, The Vanguard Group, Inc. subtracted a -3,212 position in DAO. BlackRock Fund Advisors sold an additional 14632.0 shares in the last quarter, decreasing its holdings by -2.22%, now holding 0.65 million shares worth $2.19 million. DAO shares are owned by institutional investors to the tune of 63.10% at present.