NetEase (NASDAQ:NTES) Upgraded by StockNews.com to Strong-Buy

StockNews.com upgraded shares of NetEase (NASDAQ:NTES) from a buy rating to a strong-buy rating in a research note issued to investors on Wednesday.

NTES has been the subject of several other research reports. Morgan Stanley reissued an equal weight rating and set a $100.00 price objective (down previously from $120.00) on shares of NetEase in a report on Thursday, May 23rd. Barclays started coverage on shares of NetEase in a report on Thursday, June 13th. They set an equal weight rating and a $104.00 price objective for the company. Benchmark increased their price objective on shares of NetEase from $144.00 to $145.00 and gave the company a buy rating in a report on Friday, May 24th. Finally, HSBC dropped their price objective on shares of NetEase from $130.00 to $126.00 and set a buy rating for the company in a report on Wednesday, April 24th. Two analysts have rated the stock with a hold rating, five have assigned a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of Moderate Buy and an average price target of $123.00.

NetEase Stock Performance

Shares of NetEase stock opened at $90.63 on Wednesday. The company has a market capitalization of $58.20 billion, a P/E ratio of 14.05, a P/E/G ratio of 1.80 and a beta of 0.52. The company has a fifty day moving average of $94.80 and a 200 day moving average of $98.94. NetEase has a fifty-two week low of $81.30 and a fifty-two week high of $118.89.

NetEase (NASDAQ:NTES) last issued its earnings results on Thursday, May 23rd. The technology company reported $1.63 earnings per share for the quarter, missing the consensus estimate of $1.68 by ($0.05). The firm had revenue of $3.72 billion during the quarter, compared to the consensus estimate of $3.61 billion. NetEase had a return on equity of 24.19% and a net margin of 28.75%. Analysts forecast that NetEase will post 6.86 EPS for the current year.

NetEase Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, June 21st. Stockholders of record on Thursday, June 6th will be issued a $0.495 dividend. The ex-dividend date is Thursday, June 6th. This represents a $1.98 annualized dividend and a dividend yield of 2.18%. NetEase’s dividend payout ratio (DPR) is presently 30.54%.

Hedge Funds Weigh In On NetEase

A number of large investors have recently made changes to their positions in the company. Private Trust Co. NA boosted its position in NetEase by 418.9% in the 4th quarter. Private Trust Co. NA now owns 275 shares of the technology company’s stock valued at $26,000 after buying an additional 222 shares during the period. Chilton Capital Management LLC purchased a new stake in NetEase in the 4th quarter valued at about $37,000. USA Financial Formulas boosted its position in NetEase by 1,153.1% in the 4th quarter. USA Financial Formulas now owns 401 shares of the technology company’s stock valued at $37,000 after buying an additional 369 shares during the period. UMB Bank n.a. purchased a new stake in shares of NetEase in the 1st quarter worth approximately $50,000. Finally, ORG Partners LLC purchased a new stake in shares of NetEase in the 1st quarter worth approximately $50,000. 11.07% of the stock is owned by hedge funds and other institutional investors.

About NetEase

NetEase, Inc engages in online games, music streaming, online intelligent learning services, and internet content services businesses in China and internationally . The company operates through Games and Related Value-Added Services, Youdao, Cloud Music, and Innovative Businesses and Others segments.