NetEase (NASDAQ:NTES) Shares Gap Down – Should You Sell?

NetEase, Inc. (NASDAQ:NTES) shares gapped down before the market opened on Wednesday . The stock had previously closed at $94.43, but opened at $88.88. NetEase shares last traded at $87.86, with a volume of 675,931 shares traded.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on the company. StockNews.com lowered NetEase from a “strong-buy” rating to a “buy” rating in a report on Saturday, July 20th. Jefferies Financial Group dropped their price objective on shares of NetEase from $126.00 to $103.00 and set a “buy” rating on the stock in a report on Thursday, August 22nd. Barclays reduced their target price on shares of NetEase from $104.00 to $82.00 and set an “equal weight” rating for the company in a report on Monday, August 26th. Morgan Stanley reaffirmed an “equal weight” rating and issued a $100.00 price target on shares of NetEase in a report on Friday, July 5th. Finally, Bank of America reduced their price objective on NetEase from $142.00 to $120.00 and set a “buy” rating for the company in a research note on Friday, August 23rd. Two research analysts have rated the stock with a hold rating and five have given a buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $112.67.

NetEase Stock Down 5.2 %

The company’s 50-day moving average is $86.20 and its 200 day moving average is $91.93. The company has a market cap of $57.50 billion, a price-to-earnings ratio of 13.62, a price-to-earnings-growth ratio of 1.78 and a beta of 0.55.

NetEase (NASDAQ:NTES) last posted its earnings results on Thursday, August 22nd. The technology company reported $12.05 EPS for the quarter, beating analysts’ consensus estimates of $1.62 by $10.43. The firm had revenue of $25.49 billion for the quarter, compared to analysts’ expectations of $26.01 billion. NetEase had a return on equity of 22.30% and a net margin of 26.98%. The company’s quarterly revenue was up 6.1% on a year-over-year basis. During the same period last year, the firm earned $1.75 EPS. Analysts predict that NetEase, Inc. will post 6.05 EPS for the current fiscal year.

NetEase Cuts Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, September 20th. Stockholders of record on Friday, September 6th were paid a dividend of $0.435 per share. This represents a $1.74 annualized dividend and a dividend yield of 1.94%. The ex-dividend date was Friday, September 6th. NetEase’s payout ratio is 26.82%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in NTES. Wellington Management Group LLP raised its position in NetEase by 226.4% during the fourth quarter. Wellington Management Group LLP now owns 1,896,495 shares of the technology company’s stock worth $176,677,000 after acquiring an additional 1,315,410 shares during the period. Price T Rowe Associates Inc. MD acquired a new position in shares of NetEase during the 1st quarter worth about $103,658,000. Lazard Asset Management LLC lifted its stake in NetEase by 804.5% in the 1st quarter. Lazard Asset Management LLC now owns 792,357 shares of the technology company’s stock valued at $81,983,000 after buying an additional 704,753 shares in the last quarter. Point72 Hong Kong Ltd boosted its holdings in NetEase by 109.0% in the 2nd quarter. Point72 Hong Kong Ltd now owns 1,213,323 shares of the technology company’s stock worth $115,969,000 after buying an additional 632,896 shares during the last quarter. Finally, Coatue Management LLC purchased a new stake in NetEase during the 4th quarter worth approximately $52,532,000. Hedge funds and other institutional investors own 11.07% of the company’s stock.

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.