NetEase (NASDAQ:NTES) Shares Gap Up – Still a Buy?

Shares of NetEase, Inc. (NASDAQ:NTES) gapped up prior to trading on Monday. The stock had previously closed at $115.41, but opened at $120.66. NetEase shares last traded at $121.0910, with a volume of 157,681 shares trading hands.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on NTES. The Goldman Sachs Group set a $169.00 price objective on shares of NetEase in a research note on Wednesday, July 1st. BNP Paribas Exane began coverage on shares of NetEase in a report on Tuesday, September 22nd. They issued an “outperform” rating and a $180.00 price target for the company. Nomura upped their price target on shares of NetEase from $155.00 to $157.00 and gave the stock a “buy” rating in a research report on Tuesday, August 25th. Weiss Ratings downgraded shares of NetEase from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, August 4th. Finally, Zacks Research lowered shares of NetEase from a “strong-buy” rating to a “hold” rating in a report on Monday, July 27th. Seven equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $163.62.

NetEase Stock Performance

The stock has a market capitalization of $77.76 billion, a PE ratio of 16.73, a PEG ratio of 1.34 and a beta of 0.72. The business has a 50 day moving average of $123.19 and a two-hundred day moving average of $120.55.

NetEase Cuts Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, September 18th. Shareholders of record on Thursday, September 3rd were given a dividend of $0.48 per share. The ex-dividend date of this dividend was Thursday, September 3rd. This is a negative change from NetEase’s previous quarterly dividend of $0.72. This represents a $1.92 annualized dividend and a dividend yield of 1.6%. NetEase’s payout ratio is currently 26.31%.

Insider Activity at NetEase

In other news, VP Aileen Mo sold 716 shares of the firm’s stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $120.64, for a total value of $86,378.24. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 54.70% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. QRG Capital Management Inc. grew its holdings in NetEase by 23.5% in the second quarter. QRG Capital Management Inc. now owns 9,468 shares of the technology company’s stock worth $1,213,000 after purchasing an additional 1,804 shares during the last quarter. Envestnet Asset Management Inc. boosted its position in shares of NetEase by 28.1% in the 2nd quarter. Envestnet Asset Management Inc. now owns 220,862 shares of the technology company’s stock worth $28,301,000 after purchasing an additional 48,446 shares in the last quarter. Sequoia Financial Advisors LLC boosted its position in shares of NetEase by 38.9% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 9,834 shares of the technology company’s stock worth $1,260,000 after purchasing an additional 2,752 shares in the last quarter. Tidal Investments LLC purchased a new position in NetEase during the 2nd quarter worth $4,395,000. Finally, Integrated Wealth Concepts LLC purchased a new position in NetEase during the 2nd quarter worth $102,000. Institutional investors own 11.07% of the company’s stock.

NetEase Company Profile

NetEase, Inc is a Chinese internet and technology company that develops and operates online games, digital content services and other internet-related products. Founded in 1997 by Ding Lei, the company has grown into a global developer and publisher of games for personal computers and mobile devices.

NetEase Games is the company’s primary business and offers original titles across genres including role-playing, strategy, action and competitive gaming. The company also publishes games through partnerships with international developers and operates game studios in China and overseas.