NetEase (NASDAQ:NTES) Shares Gap Down – What’s Next?

NetEase, Inc. (NASDAQ:NTES) gapped down before the market opened on Wednesday . The stock had previously closed at $127.89, but opened at $122.00. NetEase shares last traded at $124.4230, with a volume of 144,862 shares trading hands.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the stock. Wall Street Zen lowered shares of NetEase from a “buy” rating to a “hold” rating in a report on Sunday, August 2nd. Benchmark restated a “buy” rating on shares of NetEase in a research note on Friday, May 22nd. The Goldman Sachs Group set a $169.00 price target on shares of NetEase in a research report on Wednesday, July 1st. Weiss Ratings downgraded NetEase from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, August 4th. Finally, Morgan Stanley reissued an “overweight” rating and issued a $158.00 price objective on shares of NetEase in a report on Tuesday, May 26th. Seven investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $158.38.

NetEase Price Performance

The company has a fifty day moving average price of $126.51 and a 200 day moving average price of $120.77. The company has a market capitalization of $78.53 billion, a P/E ratio of 16.29, a price-to-earnings-growth ratio of 1.61 and a beta of 0.73.

NetEase Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, June 18th. Investors of record on Friday, June 5th were paid a dividend of $0.72 per share. This represents a $2.88 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date was Friday, June 5th. NetEase’s dividend payout ratio is presently 38.11%.

Insiders Place Their Bets

In other NetEase news, General Counsel Paul William Boltz, Jr. sold 10,000 shares of the stock in a transaction on Monday, June 29th. The stock was sold at an average price of $128.30, for a total value of $1,283,000.00. Following the sale, the general counsel directly owned 12,223 shares of the company’s stock, valued at $1,568,210.90. This trade represents 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 corporate insiders.

Hedge Funds Weigh In On NetEase

Hedge funds and other institutional investors have recently modified their holdings of the company. Brighton Jones LLC grew its position in shares of NetEase by 1.1% during the fourth quarter. Brighton Jones LLC now owns 10,297 shares of the technology company’s stock worth $919,000 after acquiring an additional 117 shares during the last quarter. Strs Ohio bought a new stake in NetEase in the 1st quarter valued at about $63,000. EverSource Wealth Advisors LLC lifted its position in NetEase by 106.9% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 542 shares of the technology company’s stock valued at $73,000 after purchasing an additional 280 shares during the last quarter. First Trust Advisors LP boosted its stake in NetEase by 287.4% during the 2nd quarter. First Trust Advisors LP now owns 91,571 shares of the technology company’s stock valued at $12,324,000 after purchasing an additional 67,934 shares during the period. Finally, Walleye Capital LLC boosted its stake in NetEase by 670.9% during the 2nd quarter. Walleye Capital LLC now owns 5,265 shares of the technology company’s stock valued at $709,000 after purchasing an additional 4,582 shares during the period. 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.