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

NetEase, Inc. (NASDAQ:NTES) gapped down prior to trading on Wednesday . The stock had previously closed at $94.43, but opened at $88.88. NetEase shares last traded at $87.86, with a volume of 675,931 shares.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on the company. Jefferies Financial Group reduced their price objective on NetEase from $126.00 to $103.00 and set a “buy” rating on the stock in a research report on Thursday, August 22nd. Barclays dropped their price objective 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 lowered shares of NetEase from a “strong-buy” rating to a “buy” rating in a report on Saturday, July 20th. Bank of America cut their price objective on NetEase from $142.00 to $120.00 and set a “buy” rating on the stock in a research report on Friday, August 23rd. Finally, Morgan Stanley reaffirmed an “equal weight” rating and issued a $100.00 target price on shares of NetEase in a research report on Friday, July 5th. 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.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $112.67.

NetEase Trading Down 1.1 %

The business’s 50-day simple moving average is $86.14 and its two-hundred day simple moving average is $91.91. The company has a market capitalization of $56.56 billion, a PE ratio of 14.37, a PEG ratio of 1.96 and a beta of 0.55.

NetEase (NASDAQ:NTES) last issued 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. NetEase had a return on equity of 22.30% and a net margin of 26.98%. The firm had revenue of $25.49 billion during the quarter, compared to the consensus estimate of $26.01 billion. During the same quarter in the prior year, the business posted $1.75 earnings per share. NetEase’s revenue for the quarter was up 6.1% on a year-over-year basis. On average, analysts forecast that NetEase, Inc. will post 6.05 EPS for the current year.

NetEase Cuts Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, September 20th. Stockholders of record on Friday, September 6th were given a dividend of $0.435 per share. This represents a $1.74 dividend on an annualized basis and a dividend yield of 1.98%. The ex-dividend date of this dividend was Friday, September 6th. NetEase’s payout ratio is currently 28.22%.

Institutional Investors Weigh In On NetEase

Several hedge funds and other institutional investors have recently modified their holdings of the stock. V Square Quantitative Management LLC bought a new position in NetEase during the fourth quarter worth $371,000. Virtu Financial LLC acquired a new position in shares of NetEase in the 4th quarter valued at about $3,566,000. Wellington Management Group LLP grew its position in shares of NetEase by 226.4% during the 4th quarter. Wellington Management Group LLP now owns 1,896,495 shares of the technology company’s stock valued at $176,677,000 after buying an additional 1,315,410 shares during the last quarter. Willner & Heller LLC acquired a new stake in NetEase during the fourth quarter worth about $331,000. Finally, Moseley Investment Management Inc. bought a new position in NetEase in the first quarter worth about $207,000. 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.