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

NetEase, Inc. (NASDAQ:NTES) gapped down before the market opened on Wednesday . The stock had previously closed at $129.55, but opened at $123.55. NetEase shares last traded at $122.6930, with a volume of 269,980 shares changing hands.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on NTES. Zacks Research raised shares of NetEase from a “hold” rating to a “strong-buy” rating in a research report on Monday, June 8th. Weiss Ratings raised shares of NetEase from a “hold (c)” rating to a “hold (c+)” rating in a research note on Monday. Wall Street Zen lowered NetEase from a “buy” rating to a “hold” rating in a report on Monday, July 6th. Benchmark reaffirmed a “buy” rating on shares of NetEase in a research report on Friday, May 22nd. Finally, The Goldman Sachs Group set a $169.00 price target on NetEase in a report on Wednesday, July 1st. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $158.38.

NetEase Stock Down 6.8%

The firm has a market capitalization of $77.09 billion, a PE ratio of 16.00, a price-to-earnings-growth ratio of 1.74 and a beta of 0.72. The company’s 50-day simple moving average is $123.74 and its 200 day simple moving average is $122.22.

NetEase Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 18th. Investors of record on Friday, June 5th were paid a dividend of $0.72 per share. This represents a $2.88 annualized dividend and a dividend yield of 2.4%. The ex-dividend date was Friday, June 5th. NetEase’s payout ratio is 38.11%.

Insider Buying and Selling

In other NetEase news, General Counsel Paul William Boltz, Jr. sold 10,000 shares of the firm’s stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $128.30, for a total value of $1,283,000.00. Following the completion of the sale, the general counsel directly owned 12,223 shares in the company, valued at $1,568,210.90. This trade represents a 45.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 54.70% of the stock is owned by insiders.

Hedge Funds Weigh In On NetEase

A number of large investors have recently made changes to their positions in NTES. V Square Quantitative Management LLC purchased a new stake in shares of NetEase during the 1st quarter valued at $25,000. Atlas Capital Advisors Inc. purchased a new position in NetEase during the 4th quarter worth $47,000. Smartleaf Asset Management LLC increased its position in NetEase by 3,381.8% during the 2nd quarter. Smartleaf Asset Management LLC now owns 383 shares of the technology company’s stock valued at $51,000 after buying an additional 372 shares in the last quarter. Harbour Investments Inc. increased its position in NetEase by 7,480.0% during the 4th quarter. Harbour Investments Inc. now owns 379 shares of the technology company’s stock valued at $52,000 after buying an additional 374 shares in the last quarter. Finally, MidFirst Bank purchased a new stake in NetEase in the fourth quarter valued at about $57,000. 11.07% of the stock is owned by institutional investors and hedge funds.

NetEase Company Profile

NetEase, Inc (NASDAQ: NTES) is a Chinese technology company headquartered in Hangzhou that develops and operates Internet services and products. Founded in 1997 by William Ding (Ding Lei), the company has grown from an early web portal and e-mail provider into a diversified online services group. William Ding has served as the company’s founder and long-time leader, guiding its expansion into games, digital content and consumer services.

The company’s primary business is interactive entertainment: NetEase Games designs, develops and publishes PC and mobile games for domestic and international audiences, offering a mix of self-developed franchises and titles published under licensing and strategic partnerships.