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

NetEase, Inc. (NASDAQ:NTES) shares gapped down before the market opened on Tuesday. The stock had previously closed at $118.32, but opened at $113.92. NetEase shares last traded at $114.3750, with a volume of 103,970 shares changing hands.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on NTES shares. Sanford C. Bernstein restated an “outperform” rating and set a $160.00 price objective on shares of NetEase in a research report on Friday, August 21st. The Goldman Sachs Group set a $169.00 target price on shares of NetEase in a report on Wednesday, July 1st. Wall Street Zen downgraded shares of NetEase from a “buy” rating to a “hold” rating in a research report on Sunday, August 2nd. Zacks Research lowered shares of NetEase from a “hold” rating to a “strong sell” rating in a research note on Tuesday, October 20th. Finally, Nomura increased their price target on NetEase from $155.00 to $157.00 and gave the company a “buy” rating in a report on Tuesday, August 25th. Six analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $159.86.

NetEase Trading Down 3.3%

The firm has a market capitalization of $73.24 billion, a P/E ratio of 15.74, a P/E/G ratio of 1.39 and a beta of 0.68. The stock has a 50 day simple moving average of $121.02 and a 200-day simple moving average of $122.03.

NetEase Cuts Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, September 18th. Investors of record on Thursday, September 3rd were given a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a yield of 1.7%. This is a negative change from NetEase’s previous quarterly dividend of $0.72. The ex-dividend date was Thursday, September 3rd. NetEase’s dividend payout ratio (DPR) is presently 26.31%.

Insider Buying and Selling

In other NetEase news, VP Aileen Mo sold 716 shares of the stock in a transaction that occurred on 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 filing with the SEC, which can be accessed through this hyperlink. Corporate insiders own 54.70% of the company’s stock.

Institutional Investors Weigh In On NetEase

Hedge funds have recently modified their holdings of the business. V Square Quantitative Management LLC purchased a new stake in shares of NetEase in the 1st quarter worth $25,000. Allworth Financial LP lifted its position in NetEase by 210.2% during the second quarter. Allworth Financial LP now owns 667 shares of the technology company’s stock valued at $85,000 after purchasing an additional 452 shares in the last quarter. EverSource Wealth Advisors LLC lifted its position in NetEase by 16.0% during the first quarter. EverSource Wealth Advisors LLC now owns 777 shares of the technology company’s stock valued at $87,000 after purchasing an additional 107 shares in the last quarter. Integrated Wealth Concepts LLC purchased a new position in NetEase during the second quarter valued at $102,000. Finally, Strategic Investment Advisors MI bought a new stake in NetEase during the first quarter valued at about $116,000. Institutional investors own 11.07% of the company’s stock.

NetEase Company Profile

NetEase, Inc is a China-based internet and technology company founded in 1997 by William Ding. The company develops and operates online games for personal computers and mobile devices, serving players in China and international markets.

NetEase Games is the company’s primary business and offers original titles such as Fantasy Westward Journey, Justice, and Identity V, along with games developed through partnerships and international studios. NetEase also publishes and distributes games in overseas markets through its global operations.

Beyond gaming, NetEase operates NetEase Cloud Music, an online music streaming and social platform, and Youdao, which provides educational technology, learning tools, and related content and services.