NetEase (NASDAQ:NTES) Shares Gap Up – Still a Buy?

NetEase, Inc. (NASDAQ:NTES)’s share price gapped up before the market opened on Friday . The stock had previously closed at $79.73, but opened at $84.20. NetEase shares last traded at $83.20, with a volume of 475,704 shares changing hands.

Analysts Set New Price Targets

A number of brokerages recently issued reports on NTES. StockNews.com cut shares of NetEase from a “strong-buy” rating to a “buy” rating in a research report on Saturday, July 20th. Bank of America dropped their price target on NetEase from $142.00 to $120.00 and set a “buy” rating on the stock in a research report on Friday, August 23rd. Morgan Stanley reaffirmed an “equal weight” rating and set a $100.00 price objective on shares of NetEase in a research report on Friday, July 5th. Jefferies Financial Group dropped their target price on NetEase from $126.00 to $103.00 and set a “buy” rating on the stock in a report on Thursday, August 22nd. Finally, Barclays reduced their price target on NetEase from $104.00 to $82.00 and set an “equal weight” rating for the company in a report on Monday, August 26th. Two analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $112.67.

NetEase Price Performance

The business has a 50-day simple moving average of $85.42 and a 200 day simple moving average of $91.03. The firm has a market cap of $52.93 billion, a PE ratio of 12.78, a PEG ratio of 1.96 and a beta of 0.55.

NetEase (NASDAQ:NTES) last released its earnings results on Thursday, August 22nd. The technology company reported $12.05 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.62 by $10.43. NetEase had a net margin of 26.98% and a return on equity of 22.30%. The company had revenue of $25.49 billion during the quarter, compared to analyst estimates of $26.01 billion. During the same period in the prior year, the firm posted $1.75 EPS. The firm’s quarterly revenue was up 6.1% compared to the same quarter last year. On average, equities analysts forecast that NetEase, Inc. will post 6.05 earnings per share for the current fiscal year.

NetEase Cuts Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, September 20th. Shareholders of record on Friday, September 6th were issued a $0.435 dividend. The ex-dividend date of this dividend was Friday, September 6th. This represents a $1.74 dividend on an annualized basis and a yield of 2.11%. NetEase’s dividend payout ratio is currently 26.82%.

Hedge Funds Weigh In On NetEase

Several institutional investors have recently added to or reduced their stakes in the company. Sequoia Financial Advisors LLC increased its holdings in shares of NetEase by 4.3% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 2,575 shares of the technology company’s stock worth $246,000 after buying an additional 107 shares during the last quarter. Guinness Atkinson Asset Management Inc increased its stake in NetEase by 0.7% during the second quarter. Guinness Atkinson Asset Management Inc now owns 15,422 shares of the technology company’s stock worth $1,474,000 after acquiring an additional 110 shares during the last quarter. SYSTM Wealth Solutions LLC raised its position in NetEase by 55.5% during the second quarter. SYSTM Wealth Solutions LLC now owns 328 shares of the technology company’s stock valued at $31,000 after purchasing an additional 117 shares during the period. Fifth Third Bancorp lifted its stake in shares of NetEase by 1.9% in the 2nd quarter. Fifth Third Bancorp now owns 7,658 shares of the technology company’s stock valued at $732,000 after purchasing an additional 146 shares during the last quarter. Finally, Brandes Investment Partners LP lifted its stake in shares of NetEase by 1.2% in the 2nd quarter. Brandes Investment Partners LP now owns 20,880 shares of the technology company’s stock valued at $2,000,000 after purchasing an additional 248 shares during the last quarter. Hedge funds and other institutional investors own 11.07% of the company’s stock.

NetEase Company Profile

NetEase, Inc engages in online games, music streaming, online intelligent learning services, and internet content services businesses in China and internationally . The company operates through Games and Related Value-Added Services, Youdao, Cloud Music, and Innovative Businesses and Others segments.