NetEase (NASDAQ:NTES) Shares Gap Down – Here’s Why

NetEase, Inc. (NASDAQ:NTES) shares gapped down prior to trading on Friday . The stock had previously closed at $81.16, but opened at $76.68. NetEase shares last traded at $76.95, with a volume of 208,947 shares traded.

Analysts Set New Price Targets

NTES has been the subject of several recent analyst reports. Barclays reduced their target price on NetEase from $104.00 to $82.00 and set an “equal weight” rating for the company in a report on Monday, August 26th. StockNews.com downgraded shares of NetEase from a “strong-buy” rating to a “buy” rating in a research note on Saturday, July 20th. Jefferies Financial Group lowered their price objective on shares of NetEase from $126.00 to $103.00 and set a “buy” rating for the company in a research note on Thursday, August 22nd. Finally, Bank of America reduced their price target on NetEase from $142.00 to $120.00 and set a “buy” rating on the stock in a report on Friday, August 23rd. Two equities research analysts have rated the stock with a hold rating and five have given a buy rating to the company. Based on data from MarketBeat.com, NetEase presently has an average rating of “Moderate Buy” and an average price target of $112.67.

NetEase Stock Down 5.2 %

The firm’s fifty day moving average price is $83.65 and its 200 day moving average price is $89.70. The stock has a market cap of $49.39 billion, a PE ratio of 12.53, a P/E/G ratio of 1.75 and a beta of 0.57.

NetEase (NASDAQ:NTES) last announced its quarterly earnings results on Thursday, August 22nd. The technology company reported $12.05 EPS for the quarter, beating analysts’ consensus estimates of $1.62 by $10.43. The company had revenue of $25.49 billion during the quarter, compared to analyst estimates of $26.01 billion. NetEase had a return on equity of 22.30% and a net margin of 26.98%. The firm’s revenue was up 6.1% on a year-over-year basis. During the same period in the prior year, the company earned $1.75 earnings per share. As a group, analysts anticipate that NetEase, Inc. will post 6.02 earnings per share for the current fiscal year.

NetEase Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, September 20th. Stockholders of record on Friday, September 6th were paid a $0.435 dividend. This represents a $1.74 annualized dividend and a dividend yield of 2.26%. The ex-dividend date of this dividend was Friday, September 6th. NetEase’s payout ratio is 28.22%.

Institutional Investors Weigh In On NetEase

Institutional investors have recently made changes to their positions in the company. Mather Group LLC. grew its position in NetEase by 1,415.0% in the 2nd quarter. Mather Group LLC. now owns 303 shares of the technology company’s stock valued at $31,000 after acquiring an additional 283 shares during the last quarter. SYSTM Wealth Solutions LLC grew its holdings in shares of NetEase by 55.5% in the second quarter. SYSTM Wealth Solutions LLC now owns 328 shares of the technology company’s stock worth $31,000 after purchasing an additional 117 shares during the last quarter. Ariadne Wealth Management LP purchased a new position in NetEase in the 2nd quarter worth about $35,000. Highline Wealth Partners LLC bought a new stake in NetEase during the 3rd quarter valued at about $45,000. Finally, ORG Partners LLC purchased a new stake in NetEase in the 1st quarter valued at about $50,000. 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.