StockNews.com Lowers NetEase (NASDAQ:NTES) to Buy

StockNews.com downgraded shares of NetEase (NASDAQ:NTES) from a strong-buy rating to a buy rating in a report released on Monday morning.

Several other research analysts also recently issued reports on NTES. HSBC cut their price target on NetEase from $130.00 to $126.00 and set a buy rating for the company in a research note on Wednesday, April 24th. Morgan Stanley cut their target price on shares of NetEase from $135.00 to $120.00 and set an overweight rating for the company in a research report on Friday, April 12th. Eight research analysts have rated the stock with a buy rating, According to MarketBeat, NetEase has an average rating of Buy and an average target price of $126.00.

NetEase Trading Up 0.6 %

Shares of NTES opened at $94.02 on Monday. The firm has a market capitalization of $60.62 billion, a price-to-earnings ratio of 14.85, a PEG ratio of 0.88 and a beta of 0.58. The firm’s fifty day simple moving average is $101.51 and its 200-day simple moving average is $102.69. NetEase has a twelve month low of $80.79 and a twelve month high of $118.89.

NetEase (NASDAQ:NTES) last issued its quarterly earnings data on Thursday, February 29th. The technology company reported $1.42 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.62 by ($0.20). NetEase had a return on equity of 24.36% and a net margin of 28.39%. The firm had revenue of $3.82 billion for the quarter, compared to analysts’ expectations of $3.96 billion. On average, analysts predict that NetEase will post 7.04 earnings per share for the current fiscal year.

NetEase Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, March 28th. Investors of record on Thursday, March 14th were issued a dividend of $1.08 per share. This represents a $4.32 dividend on an annualized basis and a yield of 4.59%. This is a boost from NetEase’s previous quarterly dividend of $0.50. The ex-dividend date was Wednesday, March 13th. NetEase’s dividend payout ratio (DPR) is presently 68.09%.

Institutional Investors Weigh In On NetEase

A number of institutional investors and hedge funds have recently modified their holdings of NTES. Tairen Capital Ltd acquired a new position in shares of NetEase in the 4th quarter worth $164,307,000. Wellington Management Group LLP raised its holdings in NetEase by 226.4% during the 4th quarter. Wellington Management Group LLP now owns 1,896,495 shares of the technology company’s stock worth $176,677,000 after buying an additional 1,315,410 shares during the period. WT Asset Management Ltd lifted its stake in NetEase by 381.1% during the fourth quarter. WT Asset Management Ltd now owns 996,686 shares of the technology company’s stock valued at $92,851,000 after buying an additional 789,499 shares in the last quarter. Aspex Management HK Ltd acquired a new position in shares of NetEase in the fourth quarter worth about $59,354,000. Finally, Coatue Management LLC purchased a new position in shares of NetEase in the fourth quarter worth approximately $52,532,000. 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.