Wellington Management Group LLP Raises Stake in NetEase, Inc. $NTES

Key Points

• Wellington Management increased its NetEase stake by 52.7% in the second quarter, acquiring 99,268 additional shares and bringing its holdings to 287,620 shares valued at approximately $36.9 million.
• Analyst sentiment remains generally positive, with seven Buy ratings and three Hold ratings producing a consensus “Moderate Buy” rating and an average price target of $160.57.
• NetEase declared a quarterly dividend of $0.48 per share, equivalent to $1.92 annually and a 1.6% yield; shares opened at $119.29 and have traded between $106.06 and $159.55 over the past year.

Wellington Management Group LLP raised its holdings in shares of NetEase, Inc. (NASDAQ:NTES - Free Report) by 52.7% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 287,620 shares of the technology company's stock after acquiring an additional 99,268 shares during the period. Wellington Management Group LLP's holdings in NetEase were worth $36,856,000 at the end of the most recent reporting period.

Several other large investors have also recently made changes to their positions in the business. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of NetEase by 68,860.6% during the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 8,551,117 shares of the technology company's stock valued at $1,299,684,000 after buying an additional 8,538,717 shares during the last quarter. Renaissance Technologies LLC lifted its stake in shares of NetEase by 25.2% in the 1st quarter. Renaissance Technologies LLC now owns 1,363,188 shares of the technology company's stock valued at $152,595,000 after acquiring an additional 274,500 shares during the last quarter. Bank of America Corp DE boosted its holdings 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 valued at $148,356,000 after acquiring an additional 698,318 shares during the period. Dimensional Fund Advisors LP grew its position in NetEase by 16.9% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,079,110 shares of the technology company's stock worth $120,697,000 after acquiring an additional 155,784 shares during the last quarter. Finally, Man Group plc grew its position in NetEase by 7.3% during the 3rd quarter. Man Group plc now owns 1,055,122 shares of the technology company's stock worth $160,368,000 after acquiring an additional 71,966 shares during the last quarter. 11.07% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the company. Zacks Research lowered NetEase from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 27th. Morgan Stanley reaffirmed an "overweight" rating and issued a $158.00 target price on shares of NetEase in a research note on Tuesday, May 26th. Benchmark reissued a "buy" rating on shares of NetEase in a research report on Friday, May 22nd. Wall Street Zen lowered shares of NetEase from a "buy" rating to a "hold" rating in a report on Sunday, August 2nd. Finally, Weiss Ratings cut shares of NetEase from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, August 4th. Seven investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, NetEase presently has a consensus rating of "Moderate Buy" and an average price target of $160.57.

NetEase Stock Performance

Shares of NTES opened at $119.29 on Friday. The stock has a market cap of $76.38 billion, a PE ratio of 16.43, a price-to-earnings-growth ratio of 1.35 and a beta of 0.72. NetEase, Inc. has a fifty-two week low of $106.06 and a fifty-two week high of $159.55. The firm's 50-day simple moving average is $126.98 and its two-hundred day simple moving average is $120.50.

NetEase Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 18th. Investors of record on Thursday, September 3rd will be given a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date of this dividend is Thursday, September 3rd. NetEase's dividend payout ratio (DPR) is 26.31%.

Insiders Place Their Bets

In other NetEase news, General Counsel William Jr sold 10,000 shares of NetEase stock in a transaction on Monday, June 29th. The stock was sold at an average price of $128.30, for a total transaction of $1,283,000.00. Following the completion of the transaction, the general counsel owned 12,223 shares in the company, valued at approximately $1,568,210.90. The trade was a 45.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Bin Mo sold 716 shares of the business's stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $120.64, for a total value of $86,378.24. Additional details regarding this sale are available in the official SEC disclosure. 54.70% of the stock is currently owned by insiders.

NetEase Company 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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