NetEase, Inc. (NASDAQ:NTES) Receives Consensus Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analysts remain broadly positive on NetEase: Seven of ten brokerages rate the stock a “buy” and three rate it a “hold,” producing a consensus “Moderate Buy” recommendation. The average 12-month price target is $163.62, compared with the reported share price of $121.04.
• Institutional investors increased their positions, including Bank of America, Renaissance Technologies, Temasek and Carrhae Capital. Institutions and hedge funds collectively own 11.07% of NetEase, while insiders own 54.70%.
• NetEase reduced its quarterly dividend to $0.48 from $0.72, resulting in an annualized payout of $1.92 and a 1.6% yield. The stock trades at a price-to-earnings ratio of 16.67 and has ranged between $106.06 and $156.44 over the past year.

Shares of NetEase, Inc. (NASDAQ:NTES - Get Free Report) have been assigned a consensus recommendation of "Moderate Buy" from the ten research firms that are presently covering the firm, MarketBeat Ratings reports. Three investment analysts have rated the stock with a hold rating and seven have issued a buy rating on the company. The average 12-month price objective among brokerages that have updated their coverage on the stock in the last year is $163.62.

A number of brokerages have weighed in on NTES. BNP Paribas Exane started coverage on shares of NetEase in a report on Tuesday, September 22nd. They issued an "outperform" rating and a $180.00 price target for the company. Weiss Ratings cut NetEase from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, August 4th. Wall Street Zen cut shares of NetEase from a "buy" rating to a "hold" rating in a report on Sunday, August 2nd. The Goldman Sachs Group set a $169.00 target price on NetEase in a research note on Wednesday, July 1st. Finally, Zacks Research downgraded shares of NetEase from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 27th.

Insiders Place Their Bets

In other news, VP Aileen Mo sold 716 shares of the business's stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $120.64, for a total transaction of $86,378.24. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. 54.70% of the stock is currently owned by company insiders.

Institutional Trading of NetEase

Institutional investors have recently made changes to their positions in the business. Bank of America Corp DE raised its stake in NetEase by 111.4% during the 1st quarter. Bank of America Corp DE now owns 1,325,317 shares of the technology company's stock worth $148,356,000 after buying an additional 698,318 shares during the period. PBU The Pension Fund of Early Childhood & Youth Educators bought a new stake in NetEase in the 4th quarter valued at approximately $44,214,000. Renaissance Technologies LLC boosted its holdings in NetEase by 25.2% during the first quarter. Renaissance Technologies LLC now owns 1,363,188 shares of the technology company's stock worth $152,595,000 after purchasing an additional 274,500 shares during the last quarter. Temasek Holdings Private Ltd boosted its stake in shares of NetEase by 50.7% during the 1st quarter. Temasek Holdings Private Ltd now owns 708,114 shares of the technology company's stock worth $79,266,000 after buying an additional 238,386 shares during the last quarter. Finally, Carrhae Capital LLP boosted its position in NetEase by 343.2% during the second quarter. Carrhae Capital LLP now owns 306,577 shares of the technology company's stock valued at $39,285,000 after purchasing an additional 237,410 shares during the last quarter. 11.07% of the stock is currently owned by institutional investors and hedge funds.

NetEase Stock Performance

Shares of NTES stock opened at $121.04 on Tuesday. The firm has a market capitalization of $77.50 billion, a PE ratio of 16.67, a price-to-earnings-growth ratio of 1.34 and a beta of 0.72. The stock has a fifty day moving average of $122.93 and a two-hundred day moving average of $120.57. NetEase has a 1 year low of $106.06 and a 1 year high of $156.44.

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 given a $0.48 dividend. This is a negative change from NetEase's previous quarterly dividend of $0.72. This represents a $1.92 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend was Thursday, September 3rd. NetEase's dividend payout ratio (DPR) is currently 26.31%.

About NetEase

NetEase, Inc NASDAQ: NTES is a China-based internet technology company founded in 1997 by William Ding, who serves as the company's chief executive officer and director. The company develops and operates online services for consumers in China and international markets.

NetEase's primary business is online games, including role-playing, multiplayer, mobile and personal-computer titles. Its portfolio includes franchises such as Fantasy Westward Journey, Westward Journey Online, Knives Out, Identity V and Onmyoji.

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