Zacks Investment Research Lowers NetEase (NASDAQ:NTES) to Hold

Zacks Investment Research cut shares of NetEase (NASDAQ:NTES) from a buy rating to a hold rating in a report issued on Friday, Zacks.com reports.

According to Zacks, “NetEase, Inc. is an Internet technology company engaged in the development of applications, services and other technologies for the Internet in China. It provides online gaming services that include in-house developed massively multi-player online role-playing games and licensed titles. NetEase also provides online advertising, community services, entertainment content, free e-mail services and micro-blogging services. The Company also offers wireless value-added services such as news and information content, matchmaking services, music and photos from the web that are sent over SMS, MMS, WAP, IVR and Color Ring-back Tone technologies. NetEase, Inc., formerly known as NetEase.com, Inc., is based in Beijing, the People’s Republic of China. “

Several other research firms have also recently commented on NTES. China Renaissance Securities upgraded shares of NetEase from a hold rating to a buy rating in a report on Thursday, May 16th. Barclays raised their price target on shares of NetEase from $300.00 to $320.00 and gave the stock an overweight rating in a report on Monday, May 20th. TH Capital raised their price target on shares of NetEase from $270.00 to $310.00 and gave the stock a buy rating in a report on Monday, May 13th. BidaskClub cut shares of Vertex Pharmaceuticals from a buy rating to a hold rating in a research note on Tuesday, July 9th. Finally, ValuEngine upgraded shares of XPO Logistics from a strong sell rating to a sell rating in a research note on Thursday, April 4th. Four analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company’s stock. The company currently has a consensus rating of Buy and an average price target of $278.75.



NTES stock opened at $243.78 on Friday. The firm has a market capitalization of $32.02 billion, a PE ratio of 35.48, a P/E/G ratio of 1.87 and a beta of 0.86. The stock’s 50 day moving average is $258.94. NetEase has a 52 week low of $184.60 and a 52 week high of $289.68.

NetEase (NASDAQ:NTES) last posted its quarterly earnings results on Wednesday, May 15th. The technology company reported $2.75 EPS for the quarter, topping the consensus estimate of $1.86 by $0.89. The business had revenue of $2.74 billion during the quarter, compared to analysts’ expectations of $2.73 billion. NetEase had a net margin of 10.94% and a return on equity of 17.05%. The firm’s quarterly revenue was up 23.0% compared to the same quarter last year. During the same period last year, the company posted $1.59 earnings per share. Equities research analysts forecast that NetEase will post 8.77 EPS for the current fiscal year.

Several institutional investors have recently modified their holdings of NTES. Lazard Asset Management LLC increased its holdings in NetEase by 15.1% in the 1st quarter. Lazard Asset Management LLC now owns 3,958,410 shares of the technology company’s stock valued at $955,757,000 after buying an additional 518,036 shares during the period. FMR LLC increased its stake in shares of NetEase by 3.5% in the 4th quarter. FMR LLC now owns 2,172,576 shares of the technology company’s stock valued at $511,359,000 after acquiring an additional 72,461 shares during the last quarter. Norges Bank bought a new stake in shares of NetEase in the 4th quarter valued at about $214,335,000. William Blair Investment Management LLC increased its stake in shares of NetEase by 21.6% in the 1st quarter. William Blair Investment Management LLC now owns 691,360 shares of the technology company’s stock valued at $166,924,000 after acquiring an additional 122,622 shares during the last quarter. Finally, FIL Ltd increased its stake in shares of NetEase by 7.0% in the 1st quarter. FIL Ltd now owns 689,173 shares of the technology company’s stock valued at $166,401,000 after acquiring an additional 45,219 shares during the last quarter. Institutional investors and hedge funds own 45.93% of the company’s stock.

NetEase Company Profile

NetEase, Inc operates an interactive online community in the People's Republic of China. The company operates in four segments: Online Games Services, E-Commerce, Advertising Services, and Innovative Businesses and Other Services. It offers various games in a range of genres through mobile devices and PCs, including role-playing games, MMORPGs, battle arena games, simulation games, collectible card games, first-person shooter games, sandbox games, and other types of games to the Chinese market.

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