NetEase (NASDAQ:NTES) Shares Gap Down – Should You Sell?

NetEase, Inc. (NASDAQ:NTES) gapped down prior to trading on Thursday . The stock had previously closed at $103.92, but opened at $100.15. NetEase shares last traded at $99.61, with a volume of 341,916 shares trading hands.

Analyst Upgrades and Downgrades

A number of research analysts have commented on NTES shares. Morgan Stanley upgraded shares of NetEase from an “equal weight” rating to an “overweight” rating and raised their price target for the stock from $90.00 to $108.00 in a research note on Wednesday, January 8th. Benchmark cut their target price on NetEase from $120.00 to $105.00 and set a “buy” rating for the company in a research report on Friday, November 15th. StockNews.com cut NetEase from a “strong-buy” rating to a “buy” rating in a research report on Friday, December 6th. Citigroup lifted their price objective on NetEase from $108.00 to $115.00 and gave the company a “buy” rating in a report on Friday, November 15th. Finally, Bank of America increased their target price on shares of NetEase from $120.00 to $122.00 and gave the stock a “buy” rating in a research report on Wednesday. One investment analyst has rated the stock with a hold rating and seven have assigned a buy rating to the stock. Based on data from MarketBeat, NetEase currently has an average rating of “Moderate Buy” and a consensus target price of $108.71.

NetEase Stock Performance

The stock has a 50-day simple moving average of $89.12 and a 200 day simple moving average of $87.72. The stock has a market capitalization of $63.81 billion, a P/E ratio of 16.79, a price-to-earnings-growth ratio of 3.08 and a beta of 0.57.

NetEase Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, December 13th. Investors of record on Friday, November 29th were given a $0.435 dividend. The ex-dividend date of this dividend was Friday, November 29th. This represents a $1.74 dividend on an annualized basis and a yield of 1.75%. NetEase’s payout ratio is 29.22%.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in shares of NetEase by 13,747.9% during the third quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 6,258,442 shares of the technology company’s stock worth $585,227,000 after buying an additional 6,213,248 shares during the last quarter. Hhlr Advisors LTD. raised its position in shares of NetEase by 86.8% during the 3rd quarter. Hhlr Advisors LTD. now owns 2,588,943 shares of the technology company’s stock valued at $242,092,000 after acquiring an additional 1,203,129 shares during the last quarter. Point72 Hong Kong Ltd lifted its stake in shares of NetEase by 109.0% in the 2nd quarter. Point72 Hong Kong Ltd now owns 1,213,323 shares of the technology company’s stock valued at $115,969,000 after purchasing an additional 632,896 shares during the period. Temasek Holdings Private Ltd bought a new position in shares of NetEase in the 3rd quarter worth $51,498,000. Finally, Healthcare of Ontario Pension Plan Trust Fund grew its stake in shares of NetEase by 472.6% during the third quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 418,000 shares of the technology company’s stock worth $39,087,000 after purchasing an additional 345,000 shares during the period. 11.07% of the stock is currently 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.