NetEase, Inc. (NASDAQ:NTES) Stock Rated "Moderate Buy" by Wall Street Analysts

Key Points

• NetEase has a “Moderate Buy” consensus from nine analysts: six rate it a buy, two hold, and one sell. The average 12-month price target is $159.86, above the reported share price of $118.61.
• Recent analyst views were mixed, with BNP Paribas Exane initiating an “outperform” rating and a $180 target, while Zacks Research downgraded the stock to “strong sell.”
• NetEase reduced its quarterly dividend to $0.48 from $0.72, resulting in an annualized dividend of $1.92 and a 1.6% yield.

NetEase, Inc. (NASDAQ:NTES - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the nine research firms that are presently covering the stock, MarketBeat reports. One research analyst has rated the stock with a sell recommendation, two have given a hold recommendation and six have given a buy recommendation to the company. The average 1-year price target among brokers that have issued ratings on the stock in the last year is $159.86.

Several analysts recently commented on the stock. Sanford C. Bernstein reiterated an "outperform" rating and issued a $160.00 price target on shares of NetEase in a research report on Friday, August 21st. BNP Paribas Exane assumed coverage on shares of NetEase in a research report on Tuesday, September 22nd. They set an "outperform" rating and a $180.00 price objective on the stock. Nomura lifted their price objective on shares of NetEase from $155.00 to $157.00 and gave the company a "buy" rating in a research note on Tuesday, August 25th. Zacks Research cut shares of NetEase from a "hold" rating to a "strong sell" rating in a report on Tuesday. Finally, The Goldman Sachs Group set a $169.00 target price on shares of NetEase in a research note on Wednesday, July 1st.

NetEase Trading Down 0.1%

Shares of NASDAQ NTES opened at $118.61 on Friday. NetEase has a twelve month low of $106.06 and a twelve month high of $149.11. The stock has a 50 day moving average of $120.91 and a two-hundred day moving average of $121.61. The stock has a market cap of $75.94 billion, a P/E ratio of 16.34, a P/E/G ratio of 1.39 and a beta of 0.68.

NetEase Cuts Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, September 18th. Investors of record on Thursday, September 3rd were given 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 yield of 1.6%. NetEase's payout ratio is presently 26.31%.

Insider Buying and Selling

In other NetEase news, VP Aileen Mo sold 716 shares of the company's stock in a transaction that occurred on Wednesday, September 2nd. The stock was 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 Securities & Exchange Commission, which can be accessed through this link. 54.70% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. V Square Quantitative Management LLC acquired a new stake in shares of NetEase during the first quarter worth $25,000. Allworth Financial LP grew its position in NetEase by 210.2% in the 2nd quarter. Allworth Financial LP now owns 667 shares of the technology company's stock valued at $85,000 after buying an additional 452 shares during the last quarter. EverSource Wealth Advisors LLC grew its position in NetEase by 16.0% in the 1st quarter. EverSource Wealth Advisors LLC now owns 777 shares of the technology company's stock valued at $87,000 after buying an additional 107 shares during the last quarter. Integrated Wealth Concepts LLC acquired a new position in NetEase in the 2nd quarter valued at $102,000. Finally, Strategic Investment Advisors MI acquired a new position in NetEase in the 1st quarter valued at $116,000. 11.07% of the stock is currently owned by hedge funds and other institutional investors.

About NetEase

NetEase, Inc is a China-based internet and technology company founded in 1997 by William Ding. The company develops and operates online games for personal computers and mobile devices, serving players in China and international markets.

NetEase Games is the company's primary business and offers original titles such as Fantasy Westward Journey, Justice, and Identity V, along with games developed through partnerships and international studios. NetEase also publishes and distributes games in overseas markets through its global operations.

Beyond gaming, NetEase operates NetEase Cloud Music, an online music streaming and social platform, and Youdao, which provides educational technology, learning tools, and related content and services.

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