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

NetEase, Inc. (NASDAQ:NTES)’s share price gapped down before the market opened on Monday . The stock had previously closed at $147.56, but opened at $142.44. NetEase shares last traded at $141.7630, with a volume of 224,425 shares.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on NTES shares. Citigroup reaffirmed a “buy” rating on shares of NetEase in a research report on Friday, November 21st. Wall Street Zen cut NetEase from a “buy” rating to a “hold” rating in a research report on Sunday, November 23rd. Benchmark lifted their price target on NetEase from $145.00 to $158.00 and gave the company a “buy” rating in a report on Friday, November 21st. The Goldman Sachs Group set a $161.00 price objective on NetEase and gave the stock a “buy” rating in a research note on Monday, September 15th. Finally, Morgan Stanley reiterated an “overweight” rating and issued a $170.00 target price on shares of NetEase in a research note on Wednesday, October 8th. Eight investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, NetEase presently has a consensus rating of “Moderate Buy” and a consensus target price of $152.33.

NetEase Stock Performance

The company has a 50 day moving average of $139.06 and a two-hundred day moving average of $139.52. The stock has a market capitalization of $89.68 billion, a PE ratio of 18.08, a P/E/G ratio of 1.62 and a beta of 0.67.

NetEase Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, December 19th. Stockholders of record on Friday, December 5th were issued a dividend of $0.57 per share. The ex-dividend date was Friday, December 5th. This represents a $2.28 annualized dividend and a dividend yield of 1.6%. NetEase’s dividend payout ratio is 28.99%.

Institutional Trading of NetEase

Large investors have recently bought and sold shares of the stock. NewSquare Capital LLC raised its holdings in shares of NetEase by 137.2% in the second quarter. NewSquare Capital LLC now owns 185 shares of the technology company’s stock worth $25,000 after buying an additional 107 shares during the last quarter. Private Trust Co. NA boosted its position in NetEase by 266.0% in the second quarter. Private Trust Co. NA now owns 194 shares of the technology company’s stock valued at $26,000 after buying an additional 141 shares during the last quarter. USA Financial Formulas purchased a new position in NetEase during the 2nd quarter worth approximately $30,000. Reyes Financial Architecture Inc. increased its stake in shares of NetEase by 1,189.5% in the second quarter. Reyes Financial Architecture Inc. now owns 245 shares of the technology company’s stock worth $33,000 after acquiring an additional 226 shares during the period. Finally, Richardson Financial Services Inc. purchased a new position in shares of NetEase during the second quarter worth $33,000. Hedge funds and other institutional investors own 11.07% of the company’s stock.

About NetEase

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.