Orbis Investment Management Ltd. recently announced the acquisition of new stake in Youdao Inc. (NYSE:DAO). The institutional investor has increased its shareholding in the Communication Services company by 2.57% to 15.19 million shares with purchase of 0.38 million shares. This fresh investment now brings its stake to 40.30% valued currently at $81.7 million. In addition, SSgA Funds Management, Inc. raised its holdings by 0.1 million to 0.35 million shares. And Abaris Investment Management AG has lifted its position by 225.00% or 0.18 million shares – to 0.26 million shares.
With over 0.24 million Youdao Inc. (DAO) shares trading Friday and a closing price of $7.66 on the day, the dollar volume was approximately $1.8 million. The shares have shown a positive half year performance of 74.49% and its price on 01/13/23 gained nearly 2.82%. Currently, there are 123.77M common shares owned by the public and among those 36.42M shares have been available to trade.
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An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 7 analysts who have offered their price forecasts for DAO have a consensus price objective of $41.54. The analysts have set the share’s price value over the next 12 months at a high of $66.69 and a low of $28.51. The average price target is -29.83% below its recent price level and an upside to the estimated low will see the stock gain 73.13% over that period. But an upside of 88.51% will see the stock hit the forecast high price target while median target price for the stock is $39.99.
The top 3 mutual fund holders in Youdao Inc. are Orbis SICAV – Emerging Markets Eq, Vanguard Emerging Markets Stock I, and Vanguard Total International Stoc. Orbis SICAV – Emerging Markets Eq owns 6.67 million shares of the company’s stock, all valued at over $35.91 million. The company bought an additional 1.91 million shares recently to bring their total holdings to about 17.71% of the shares outstanding. Vanguard Total International Stoc now owns shares totaling to 1.12% of the shares outstanding.
Shares of Youdao Inc. (NYSE: DAO) opened at $7.50, up $0.05 from a prior closing price of $7.45. However, the script later moved the day high at 8.13, up 2.82%. The company’s stock has a 5-day price change of 0.66% and 79.81% over the past three months. DAO shares are trading 42.38% year to date (YTD), with the 12-month market performance down to -47.96% lower. It has a 12-month low price of $3.03 and touched a high of $14.88 over the same period. DAO has an average intraday trading volume of 242.49K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 22.45%, 55.28%, and 47.89% respectively.
Institutional ownership of Youdao Inc. (NYSE: DAO) shares accounts for 63.00% of the company’s 123.77M shares outstanding. Mutual fund holders own 23.49%, while other institutional holders and individual stakeholders account for 27.04% and — respectively.
It has a market capitalization of $938.50M. The earnings-per-share (ttm) stands at -$1.26. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.68% over the week and 9.92% over the month.
Analysts forecast that Youdao Inc. (DAO) will achieve an EPS of -$0.12 for the current quarter, -$0.1 for the next quarter and -$0.2 for 2023. The lowest estimate earnings-per-share for the quarter is -$0.23 while analysts give the company a high EPS estimate of -$0.03. Comparatively, EPS for the current quarter was -$0.17 a year ago. Earnings per share for the fiscal year are expected to decrease by -4.00%, and 88.30% over the next financial year.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 7 brokerage firm advisors rate Youdao Inc. (DAO) as a “Strong Buy” at a consensus score of 1.90. Specifically, 5 Wall Street analysts polled rate the stock as a buy, while 2 of the 7 advise that investors “hold,” and 0 rated it as a “Sell.”
Looking at the support for the DAO, a number of firms have released research notes about the stock. Morgan Stanley stated their Overweight rating for the stock in a research note on March 07, 2022, with the firm’s price target at $13-$15. Citigroup coverage for the Youdao Inc. (DAO) stock in a research note released on February 25, 2022 offered a Buy rating with a price target of $15.50. Daiwa Securities was of a view on September 03, 2021 that the stock is Neutral, while Morgan Stanley gave the stock Equal-Weight rating on August 30, 2021, issuing a price target of $29- $11.40. Daiwa Securities on their part issued Underperform rating on July 27, 2021.
