Davis Selected Advisers Sells 168,576 Shares of NetEase, Inc. $NTES

Key Points

• Davis Selected Advisers reduced its stake in NetEase by 28.3%, selling 168,576 shares in Q4 and retaining 426,164 shares worth about $58.65 million.
• NetEase raised its quarterly dividend from $0.57 to $1.16, an annualized $4.64 payout that yields ~3.9% with a dividend payout ratio of 63.08%.
• The stock trades near $117.98 with a market cap of $74.75 billion and a P/E of 16.07; analysts give a consensus rating of "Moderate Buy" and an average price target of $153.89.

Davis Selected Advisers lessened its stake in NetEase, Inc. (NASDAQ:NTES - Free Report) by 28.3% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 426,164 shares of the technology company's stock after selling 168,576 shares during the period. Davis Selected Advisers owned about 0.07% of NetEase worth $58,649,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently modified their holdings of the stock. Ameritas Advisory Services LLC lifted its holdings in shares of NetEase by 125.8% in the 3rd quarter. Ameritas Advisory Services LLC now owns 8,285 shares of the technology company's stock worth $1,259,000 after buying an additional 4,616 shares during the period. Range Financial Group LLC purchased a new stake in shares of NetEase in the 4th quarter worth $1,759,000. Renaissance Group LLC purchased a new stake in shares of NetEase in the 3rd quarter worth $6,177,000. American Century Companies Inc. lifted its holdings in shares of NetEase by 7.3% in the 3rd quarter. American Century Companies Inc. now owns 803,379 shares of the technology company's stock worth $122,106,000 after buying an additional 54,929 shares during the period. Finally, Ovata Capital Management Ltd lifted its holdings in shares of NetEase by 228.6% in the 3rd quarter. Ovata Capital Management Ltd now owns 25,300 shares of the technology company's stock worth $3,850,000 after buying an additional 17,600 shares during the period. Institutional investors own 11.07% of the company's stock.

NetEase Price Performance

Shares of NASDAQ:NTES opened at $117.98 on Friday. The business's 50-day moving average is $114.62 and its 200 day moving average is $129.30. The firm has a market capitalization of $74.75 billion, a P/E ratio of 16.07, a P/E/G ratio of 1.52 and a beta of 0.72. NetEase, Inc. has a 1 year low of $103.22 and a 1 year high of $159.55.

NetEase Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, March 27th. Stockholders of record on Monday, March 16th were issued a $1.16 dividend. This is a boost from NetEase's previous quarterly dividend of $0.57. This represents a $4.64 dividend on an annualized basis and a dividend yield of 3.9%. The ex-dividend date of this dividend was Monday, March 16th. NetEase's dividend payout ratio is currently 63.08%.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on the company. Morgan Stanley reiterated an "overweight" rating and issued a $154.00 target price on shares of NetEase in a report on Monday, March 2nd. Citigroup reiterated a "buy" rating on shares of NetEase in a report on Wednesday, February 11th. Benchmark reiterated a "buy" rating on shares of NetEase in a report on Thursday, February 12th. Nomura lowered their target price on NetEase from $160.00 to $155.00 and set a "buy" rating for the company in a report on Friday, February 13th. Finally, Barclays reduced their price target on NetEase from $135.00 to $132.00 and set an "equal weight" rating for the company in a research report on Thursday, February 12th. Eight investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $153.89.

NetEase Profile

NetEase, Inc NASDAQ: NTES is a Chinese technology company headquartered in Hangzhou that develops and operates Internet services and products. Founded in 1997 by William Ding (Ding Lei), the company has grown from an early web portal and e-mail provider into a diversified online services group. William Ding has served as the company's founder and long-time leader, guiding its expansion into games, digital content and consumer services.

The company's primary business is interactive entertainment: NetEase Games designs, develops and publishes PC and mobile games for domestic and international audiences, offering a mix of self-developed franchises and titles published under licensing and strategic partnerships.

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