NetEase (NASDAQ:NTES) Shares Gap Down – What’s Next?

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 trading hands.

Wall Street Analyst Weigh In

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

NetEase Price Performance

The firm has a market cap of $49.29 billion, a PE ratio of 12.52, a PEG ratio of 1.77 and a beta of 0.57. The business has a 50-day moving average price of $83.59 and a two-hundred day moving average price of $89.51.

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

NetEase Cuts Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 20th. Stockholders of record on Friday, September 6th were given a $0.435 dividend. This represents a $1.74 annualized dividend and a dividend yield of 2.27%. The ex-dividend date of this dividend was Friday, September 6th. NetEase’s payout ratio is currently 28.22%.

Hedge Funds Weigh In On NetEase

Several hedge funds and other institutional investors have recently bought and sold shares of NTES. Mather Group LLC. increased its stake in shares of NetEase by 1,415.0% in the second quarter. Mather Group LLC. now owns 303 shares of the technology company’s stock worth $31,000 after buying an additional 283 shares during the last quarter. SYSTM Wealth Solutions LLC raised its stake in NetEase by 55.5% during the 2nd quarter. SYSTM Wealth Solutions LLC now owns 328 shares of the technology company’s stock valued at $31,000 after acquiring an additional 117 shares in the last quarter. Ariadne Wealth Management LP acquired a new stake in NetEase in the second quarter worth about $35,000. Highline Wealth Partners LLC acquired a new stake in NetEase in the third quarter worth approximately $45,000. Finally, Allspring Global Investments Holdings LLC bought a new position in shares of NetEase during the 3rd quarter valued at about $76,000. 11.07% of the stock is owned by institutional investors and hedge funds.

About NetEase

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.