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

NetEase, Inc. (NASDAQ:NTES) shares gapped down before the market opened on Monday . The stock had previously closed at $82.42, but opened at $80.45. NetEase shares last traded at $81.35, with a volume of 191,368 shares trading hands.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on NTES shares. Jefferies Financial Group dropped 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. Barclays reduced their price target on shares of NetEase from $104.00 to $82.00 and set an “equal weight” rating for the company in a research report on Monday, August 26th. Morgan Stanley restated an “equal weight” rating and issued a $100.00 price objective on shares of NetEase in a research note on Friday, July 5th. Bank of America decreased their price objective on shares of NetEase from $142.00 to $120.00 and set a “buy” rating on the stock in a research report on Friday, August 23rd. Finally, StockNews.com downgraded NetEase from a “strong-buy” rating to a “buy” rating in a research report on Saturday, July 20th. Two equities research analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $112.67.

NetEase Trading Down 0.3 %

The business’s 50 day simple moving average is $85.09 and its 200 day simple moving average is $90.77. The firm has a market capitalization of $52.04 billion, a PE ratio of 12.56, a PEG ratio of 1.96 and a beta of 0.55.

NetEase (NASDAQ:NTES) last released its earnings results on Thursday, August 22nd. The technology company reported $12.05 earnings per share for the quarter, beating the consensus estimate 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 for the quarter, compared to the consensus estimate of $26.01 billion. During the same quarter in the previous year, the company posted $1.75 EPS. The company’s revenue for the quarter was up 6.1% compared to the same quarter last year. Analysts forecast that NetEase, Inc. will post 6.05 earnings per share for the current year.

NetEase Cuts Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, September 20th. Stockholders of record on Friday, September 6th were paid a dividend of $0.435 per share. The ex-dividend date of this dividend was Friday, September 6th. This represents a $1.74 dividend on an annualized basis and a dividend yield of 2.15%. NetEase’s dividend payout ratio is 26.82%.

Hedge Funds Weigh In On NetEase

Several hedge funds have recently bought and sold shares of the business. Allspring Global Investments Holdings LLC bought a new position in NetEase in the 3rd quarter worth about $76,000. Blue Trust Inc. raised its holdings in shares of NetEase by 44.6% in the third quarter. Blue Trust Inc. now owns 4,509 shares of the technology company’s stock valued at $431,000 after acquiring an additional 1,391 shares in the last quarter. Marshall Financial Group LLC lifted its stake in NetEase by 2.2% in the third quarter. Marshall Financial Group LLC now owns 18,254 shares of the technology company’s stock worth $1,707,000 after acquiring an additional 386 shares during the period. Naviter Wealth LLC grew its holdings in NetEase by 28.4% during the 3rd quarter. Naviter Wealth LLC now owns 8,427 shares of the technology company’s stock worth $788,000 after acquiring an additional 1,865 shares in the last quarter. Finally, Vontobel Holding Ltd. increased its position in NetEase by 154.4% during the 3rd quarter. Vontobel Holding Ltd. now owns 72,220 shares of the technology company’s stock valued at $6,753,000 after purchasing an additional 43,836 shares during the period. Institutional investors own 11.07% of the company’s stock.

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.