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

NetEase, Inc. (NASDAQ:NTES) 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 changing hands.

Wall Street Analysts Forecast Growth

NTES has been the subject of several recent research reports. Barclays reduced their price target on 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 reaffirmed an “equal weight” rating and issued a $100.00 price objective on shares of NetEase in a research report on Friday, July 5th. Bank of America reduced their target price on NetEase from $142.00 to $120.00 and set a “buy” rating on the stock in a research report on Friday, August 23rd. StockNews.com downgraded NetEase from a “strong-buy” rating to a “buy” rating in a research note on Saturday, July 20th. Finally, Jefferies Financial Group reduced their price objective on NetEase from $126.00 to $103.00 and set a “buy” rating for the company in a research note on Thursday, August 22nd. Two equities research analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $112.67.

NetEase Trading Down 0.3 %

The firm has a 50-day simple moving average of $85.09 and a two-hundred day simple moving average of $90.77. The company has a market capitalization of $52.04 billion, a price-to-earnings ratio of 12.56, a P/E/G ratio of 1.96 and a beta of 0.55.

NetEase (NASDAQ:NTES) last posted its earnings results on Thursday, August 22nd. The technology company reported $12.05 EPS for the quarter, topping 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 analyst estimates of $26.01 billion. During the same period last year, the company earned $1.75 earnings per share. NetEase’s revenue for the quarter was up 6.1% compared to the same quarter last year. Equities research analysts anticipate that NetEase, Inc. will post 6.05 EPS for the current year.

NetEase Cuts Dividend

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

Institutional Trading of NetEase

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Allspring Global Investments Holdings LLC purchased a new stake in shares of NetEase during the third quarter worth approximately $76,000. Blue Trust Inc. boosted its stake in NetEase by 44.6% during the 3rd quarter. Blue Trust Inc. now owns 4,509 shares of the technology company’s stock worth $431,000 after purchasing an additional 1,391 shares during the last quarter. Marshall Financial Group LLC grew its holdings in shares of NetEase by 2.2% during the third quarter. Marshall Financial Group LLC now owns 18,254 shares of the technology company’s stock worth $1,707,000 after buying an additional 386 shares in the last quarter. Naviter Wealth LLC raised its position in shares of NetEase by 28.4% in the third quarter. Naviter Wealth LLC now owns 8,427 shares of the technology company’s stock valued at $788,000 after buying an additional 1,865 shares during the last quarter. Finally, Vontobel Holding Ltd. lifted its stake in shares of NetEase by 154.4% in the third quarter. Vontobel Holding Ltd. now owns 72,220 shares of the technology company’s stock worth $6,753,000 after buying an additional 43,836 shares in the last quarter. 11.07% of the stock is currently owned by hedge funds and other institutional investors.

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.