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

NetEase, Inc. (NASDAQ:NTES)’s stock price gapped down prior to trading on Thursday . The stock had previously closed at $104.17, but opened at $99.12. NetEase shares last traded at $100.27, with a volume of 428,729 shares changing hands.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on NTES shares. StockNews.com lowered shares of NetEase from a “strong-buy” rating to a “buy” rating in a research report on Friday, December 6th. Citigroup boosted their target price on shares of NetEase from $108.00 to $115.00 and gave the stock a “buy” rating in a research report on Friday, November 15th. Bank of America boosted 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, January 15th. Morgan Stanley lifted their price target on NetEase from $108.00 to $117.00 and gave the stock an “overweight” rating in a research note on Wednesday, February 12th. Finally, Benchmark boosted their target price on shares of NetEase from $105.00 to $115.00 and gave the company a “buy” rating in a research note on Friday. One investment analyst has rated the stock with a hold rating and seven have issued a buy rating to the company. According to data from MarketBeat.com, NetEase presently has an average rating of “Moderate Buy” and an average target price of $111.43.

NetEase Stock Performance

The firm has a market cap of $66.28 billion, a PE ratio of 16.20, a PEG ratio of 3.37 and a beta of 0.58. The stock has a fifty day moving average price of $97.77 and a 200-day moving average price of $89.75.

NetEase (NASDAQ:NTES) last released its quarterly earnings results on Thursday, February 20th. The technology company reported $1.87 earnings per share for the quarter, topping analysts’ consensus estimates of $1.73 by $0.14. The firm had revenue of $3.66 billion during the quarter, compared to analysts’ expectations of $27.16 billion. NetEase had a return on equity of 22.12% and a net margin of 28.17%. As a group, equities analysts predict that NetEase, Inc. will post 6.91 earnings per share for the current fiscal year.

NetEase Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, March 17th. Investors of record on Thursday, March 6th will be given a dividend of $0.435 per share. This represents a $1.74 annualized dividend and a dividend yield of 1.69%. The ex-dividend date of this dividend is Thursday, March 6th. NetEase’s dividend payout ratio is currently 27.16%.

Institutional Investors Weigh In On NetEase

Several institutional investors and hedge funds have recently made changes to their positions in NTES. Toronto Dominion Bank acquired a new stake in NetEase in the fourth quarter worth $145,000. GF Fund Management CO. LTD. acquired a new position in shares of NetEase in the 4th quarter valued at $1,362,000. Public Employees Retirement System of Ohio boosted its position in shares of NetEase by 3.1% in the 4th quarter. Public Employees Retirement System of Ohio now owns 128,316 shares of the technology company’s stock valued at $11,447,000 after purchasing an additional 3,883 shares during the period. GTS Securities LLC purchased a new stake in NetEase in the 4th quarter worth about $210,000. Finally, Vise Technologies Inc. purchased a new stake in NetEase in the 4th quarter worth about $412,000. 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.