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

NetEase, Inc. (NASDAQ:NTES) gapped down before the market opened on Wednesday. The stock had previously closed at $128.03, but opened at $123.60. NetEase shares last traded at $122.35, with a volume of 613,859 shares trading hands.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on NTES. Nomura lifted their price target on shares of NetEase from $155.00 to $157.00 and gave the stock a “buy” rating in a research note on Tuesday, August 25th. Weiss Ratings reissued a “hold (c)” rating on shares of NetEase in a report on Monday, November 2nd. Zacks Research downgraded shares of NetEase from a “hold” rating to a “strong sell” rating in a research report on Tuesday, October 20th. Wall Street Zen cut shares of NetEase from a “buy” rating to a “hold” rating in a report on Sunday, August 2nd. Finally, BNP Paribas Exane assumed coverage on shares of NetEase in a research report on Tuesday, September 22nd. They issued an “outperform” rating and a $180.00 target price for the company. Six analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, NetEase presently has an average rating of “Moderate Buy” and an average target price of $159.86.

NetEase Price Performance

The business has a 50-day moving average of $120.03 and a 200 day moving average of $120.76. The company has a market cap of $78.51 billion, a PE ratio of 16.82, a PEG ratio of 1.45 and a beta of 0.64.

NetEase Cuts Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 18th. Stockholders of record on Thursday, September 3rd were paid a $0.48 dividend. This is a drop from NetEase’s previous quarterly dividend of $0.72. The ex-dividend date was Thursday, September 3rd. This represents a $1.92 annualized dividend and a dividend yield of 1.6%. NetEase’s dividend payout ratio (DPR) is currently 26.31%.

Insider Activity

In related news, VP Aileen Mo sold 716 shares of the firm’s 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 is available at this hyperlink. Insiders own 54.70% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. Bessemer Group Inc. grew its position in shares of NetEase by 590.7% during the 3rd quarter. Bessemer Group Inc. now owns 297 shares of the technology company’s stock valued at $36,000 after acquiring an additional 254 shares during the period. Livelsberger Financial Advisory bought a new position in NetEase in the 3rd quarter worth $43,000. Allworth Financial LP raised its holdings in NetEase by 210.2% in the 2nd quarter. Allworth Financial LP now owns 667 shares of the technology company’s stock worth $85,000 after purchasing an additional 452 shares during the period. 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. Finally, Integrated Wealth Concepts LLC purchased a new position in NetEase during the second quarter valued at $102,000. 11.07% of the stock is currently owned by institutional investors.

About NetEase

NetEase, Inc. is a China-based internet technology company best known for developing and publishing online games. Its portfolio includes titles such as Fantasy Westward Journey and Identity V, as well as games for mobile and other platforms. The company serves players in China and international markets. NetEase also operates NetEase Cloud Music, a music streaming and social platform, and Youdao, which provides digital learning services and education technology products. Its businesses span game development and publishing, music, and online learning.