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

NetEase, Inc. (NASDAQ:NTES)’s share price gapped down prior to trading on Friday . The stock had previously closed at $96.28, but opened at $93.96. NetEase shares last traded at $94.43, with a volume of 109,133 shares trading hands.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the stock. Benchmark cut their price target on shares of NetEase from $120.00 to $105.00 and set a “buy” rating for the company in a report on Friday, November 15th. StockNews.com cut NetEase from a “strong-buy” rating to a “buy” rating in a research note on Friday, December 6th. Barclays decreased their price target on NetEase from $104.00 to $82.00 and set an “equal weight” rating on the stock in a research note on Monday, August 26th. Jefferies Financial Group cut their price objective on NetEase from $126.00 to $103.00 and set a “buy” rating for the company in a research report on Thursday, August 22nd. Finally, Bank of America reduced their price objective on shares of NetEase from $142.00 to $120.00 and set a “buy” rating on the stock in a report on Friday, August 23rd. Two equities research analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $107.29.

NetEase Price Performance

The firm has a market capitalization of $61.10 billion, a price-to-earnings ratio of 16.26, a PEG ratio of 3.58 and a beta of 0.57. The stock has a 50 day moving average price of $85.74 and a two-hundred day moving average price of $87.87.

NetEase Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 13th. Shareholders of record on Friday, November 29th will be paid a dividend of $0.435 per share. The ex-dividend date of this dividend is Friday, November 29th. This represents a $1.74 dividend on an annualized basis and a yield of 1.83%. NetEase’s dividend payout ratio (DPR) is presently 29.22%.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in NTES. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in NetEase by 13,747.9% in the 3rd 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 valued at $585,227,000 after buying an additional 6,213,248 shares during the period. Hhlr Advisors LTD. boosted its holdings in NetEase by 86.8% in the third quarter. Hhlr Advisors LTD. now owns 2,588,943 shares of the technology company’s stock valued at $242,092,000 after purchasing an additional 1,203,129 shares during the period. Point72 Hong Kong Ltd boosted its holdings in NetEase by 109.0% in the second 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 acquired a new position in NetEase during the 3rd quarter worth $51,498,000. Finally, Healthcare of Ontario Pension Plan Trust Fund increased its holdings in NetEase by 472.6% during the 3rd 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. Institutional investors and hedge funds 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.