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

NetEase, Inc. (NASDAQ:NTES)’s stock price gapped down prior to trading 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.

Analysts Set New Price Targets

Several analysts have recently issued reports on the stock. Benchmark restated a “buy” rating on shares of NetEase in a research report on Friday, May 22nd. Morgan Stanley reissued an “overweight” rating and set a $158.00 price objective on shares of NetEase in a research note on Tuesday, May 26th. Weiss Ratings upgraded NetEase from a “hold (c)” rating to a “hold (c+)” rating in a research report on Monday. Zacks Research raised NetEase from a “hold” rating to a “strong-buy” rating in a research note on Monday, June 8th. Finally, The Goldman Sachs Group set a $169.00 target price on NetEase in a report on Wednesday, July 1st. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, NetEase has an average rating of “Moderate Buy” and an average price target of $158.38.

NetEase Stock Performance

The company’s fifty day moving average price is $123.84 and its 200-day moving average price is $121.91. The stock has a market cap of $76.73 billion, a P/E ratio of 15.96, a price-to-earnings-growth ratio of 1.57 and a beta of 0.72.

NetEase Cuts Dividend

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

Insider Activity

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

Hedge Funds Weigh In On NetEase

A number of large investors have recently bought and sold shares of the business. Allworth Financial LP increased its stake in NetEase by 15.2% in the 3rd quarter. Allworth Financial LP now owns 718 shares of the technology company’s stock worth $109,000 after buying an additional 95 shares during the period. Arkadios Wealth Advisors lifted its holdings in NetEase by 5.9% during the 4th quarter. Arkadios Wealth Advisors now owns 1,859 shares of the technology company’s stock valued at $256,000 after buying an additional 103 shares in the last quarter. Spire Wealth Management boosted its position in NetEase by 31.3% in the 4th quarter. Spire Wealth Management now owns 436 shares of the technology company’s stock valued at $60,000 after buying an additional 104 shares during the period. Cookson Peirce & Co. Inc. boosted its position in NetEase by 2.2% in the 4th quarter. Cookson Peirce & Co. Inc. now owns 4,961 shares of the technology company’s stock valued at $683,000 after buying an additional 106 shares during the period. Finally, EverSource Wealth Advisors LLC boosted its position in NetEase by 16.0% in the 1st quarter. EverSource Wealth Advisors LLC now owns 777 shares of the technology company’s stock valued at $87,000 after buying an additional 107 shares during the period. Hedge funds and other institutional investors own 11.07% of the company’s stock.

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.