NetEase, Inc. $NTES Shares Sold by Capital International Investors

Key Points

• Capital International Investors cut its NetEase stake by 55.4% in Q3, selling 318,890 shares and ending the period with 257,093 shares worth about $39.02 million; overall institutional ownership is roughly 11.07%.
• NetEase raised its quarterly dividend to $1.16 (from $0.57), a $4.64 annualized payout with a ~4.0% yield; the record/ex-dividend date is March 16 and the payment date is March 27.
• Analysts maintain a "Moderate Buy" consensus (eight Buys, three Holds) with a consensus target price of $153.89, though several brokers recently trimmed price targets.

Capital International Investors reduced its stake in NetEase, Inc. (NASDAQ:NTES - Free Report) by 55.4% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 257,093 shares of the technology company's stock after selling 318,890 shares during the period. Capital International Investors' holdings in NetEase were worth $39,023,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of NTES. Cornerstone Planning Group LLC acquired a new stake in NetEase in the 3rd quarter valued at about $33,000. Steigerwald Gordon & Koch Inc. acquired a new position in shares of NetEase during the third quarter worth about $38,000. First Horizon Corp acquired a new position in shares of NetEase during the third quarter worth about $45,000. Mather Group LLC. purchased a new stake in shares of NetEase during the third quarter worth approximately $46,000. Finally, Spire Wealth Management increased its stake in shares of NetEase by 29.2% during the third quarter. Spire Wealth Management now owns 332 shares of the technology company's stock worth $50,000 after buying an additional 75 shares during the period. 11.07% of the stock is currently owned by hedge funds and other institutional investors.

NetEase Price Performance

NTES stock opened at $116.27 on Friday. The company has a market cap of $73.67 billion, a price-to-earnings ratio of 15.84, a price-to-earnings-growth ratio of 1.47 and a beta of 0.74. The company has a fifty day moving average price of $126.88 and a 200 day moving average price of $137.27. NetEase, Inc. has a 12 month low of $88.54 and a 12 month high of $159.55.

NetEase Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, March 27th. Stockholders of record on Monday, March 16th will be issued a $1.16 dividend. The ex-dividend date of this dividend is Monday, March 16th. This is a positive change from NetEase's previous quarterly dividend of $0.57. This represents a $4.64 annualized dividend and a dividend yield of 4.0%. NetEase's payout ratio is presently 30.93%.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on NTES. Nomura reduced their price objective on shares of NetEase from $160.00 to $155.00 and set a "buy" rating on the stock in a report on Friday, February 13th. Weiss Ratings reiterated a "hold (c)" rating on shares of NetEase in a research note on Monday, December 22nd. Citigroup reissued a "buy" rating on shares of NetEase in a report on Wednesday, February 11th. Benchmark restated a "buy" rating on shares of NetEase in a research note on Thursday, February 12th. Finally, Barclays decreased their price target on NetEase from $135.00 to $132.00 and set an "equal weight" rating for the company in a report on Thursday, February 12th. Eight equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price 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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