NetEase (NASDAQ:NTES) Shares Gap Up – Still a Buy?

Shares of NetEase, Inc. (NASDAQ:NTES) gapped up prior to trading on Friday . The stock had previously closed at $137.62, but opened at $146.36. NetEase shares last traded at $147.5860, with a volume of 129,395 shares.

Analysts Set New Price Targets

Several brokerages have recently commented on NTES. JPMorgan Chase & Co. raised shares of NetEase from a “neutral” rating to an “overweight” rating and raised their price objective for the stock from $138.00 to $190.00 in a research report on Friday, October 10th. Sanford C. Bernstein set a $155.00 target price on shares of NetEase in a research note on Friday, November 21st. Barclays set a $135.00 price target on shares of NetEase and gave the stock an “equal weight” rating in a report on Friday, November 21st. Morgan Stanley reiterated an “overweight” rating and set a $170.00 price objective on shares of NetEase in a report on Wednesday, October 8th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of NetEase in a research report on Monday, December 22nd. Eight analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, NetEase presently has an average rating of “Moderate Buy” and an average price target of $152.33.

NetEase Price Performance

The business’s fifty day moving average price is $139.04 and its 200-day moving average price is $139.03. The stock has a market capitalization of $93.68 billion, a price-to-earnings ratio of 18.87, a PEG ratio of 1.65 and a beta of 0.67.

NetEase Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, December 19th. Shareholders of record on Friday, December 5th were issued a dividend of $0.57 per share. This represents a $2.28 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend was Friday, December 5th. NetEase’s payout ratio is currently 28.99%.

Institutional Investors Weigh In On NetEase

Institutional investors have recently bought and sold shares of the stock. NewSquare Capital LLC grew its position in NetEase by 137.2% during the second quarter. NewSquare Capital LLC now owns 185 shares of the technology company’s stock valued at $25,000 after buying an additional 107 shares during the period. Private Trust Co. NA grew its position in shares of NetEase by 266.0% during the 2nd quarter. Private Trust Co. NA now owns 194 shares of the technology company’s stock valued at $26,000 after acquiring an additional 141 shares during the period. Cornerstone Planning Group LLC purchased a new stake in shares of NetEase during the 3rd quarter worth approximately $33,000. USA Financial Formulas purchased a new stake in shares of NetEase during the 2nd quarter worth approximately $30,000. Finally, Reyes Financial Architecture Inc. raised its holdings in shares of NetEase by 1,189.5% in the 2nd quarter. Reyes Financial Architecture Inc. now owns 245 shares of the technology company’s stock worth $33,000 after purchasing an additional 226 shares during the period. 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.