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

Shares of NetEase, Inc. (NASDAQ:NTES) gapped up prior to trading on Friday . The stock had previously closed at $114.82, but opened at $118.55. NetEase shares last traded at $121.2820, with a volume of 217,668 shares changing hands.

Wall Street Analyst Weigh In

NTES has been the subject of a number of recent analyst reports. Morgan Stanley reaffirmed an “overweight” rating and set a $158.00 price target on shares of NetEase in a report on Tuesday, May 26th. Weiss Ratings restated a “hold (c)” rating on shares of NetEase in a research report on Thursday, June 18th. Benchmark restated a “buy” rating on shares of NetEase in a research note on Friday, May 22nd. Zacks Research upgraded NetEase from a “hold” rating to a “strong-buy” rating in a research note on Monday, June 8th. Finally, Wall Street Zen cut NetEase from a “buy” rating to a “hold” rating in a report on Saturday, June 20th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $157.38.

NetEase Trading Up 6.7%

The business has a 50-day moving average of $118.45 and a two-hundred day moving average of $123.16. The firm has a market cap of $78.20 billion, a P/E ratio of 16.29, a price-to-earnings-growth ratio of 1.52 and a beta of 0.72.

NetEase Cuts Dividend

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

Hedge Funds Weigh In On NetEase

Hedge funds have recently modified their holdings of the business. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in NetEase by 68,860.6% during the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 8,551,117 shares of the technology company’s stock worth $1,299,684,000 after buying an additional 8,538,717 shares during the period. Bank of America Corp DE increased its stake in shares of NetEase by 111.4% in the first quarter. Bank of America Corp DE now owns 1,325,317 shares of the technology company’s stock valued at $148,356,000 after buying an additional 698,318 shares during the period. Bank of Montreal Can increased its stake in shares of NetEase by 1,636.4% in the third quarter. Bank of Montreal Can now owns 662,557 shares of the technology company’s stock valued at $100,702,000 after buying an additional 624,399 shares during the period. PBU The Pension Fund of Early Childhood & Youth Educators bought a new position in shares of NetEase during the fourth quarter worth about $44,214,000. Finally, Renaissance Technologies LLC raised its position in shares of NetEase by 25.2% during the first quarter. Renaissance Technologies LLC now owns 1,363,188 shares of the technology company’s stock worth $152,595,000 after acquiring an additional 274,500 shares during the last quarter. Institutional investors and hedge funds 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.