NetEase, Inc. (NASDAQ:NTES) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analyst consensus: Eleven analysts rate NetEase a "Moderate Buy" (8 Buy, 3 Hold) with an average 12‑month price target of $153.89.
• Dividend hike: NetEase raised its quarterly dividend to $1.16 (annualized $4.64), implying a ~3.9% yield versus the prior quarterly payout of $0.57 and a payout ratio around 63%.
• Valuation & recent price: NTES opened at $117.98, with a market cap of about $74.8B, a P/E of 16.07, and a 52‑week range of $103.22–$159.55.

Shares of NetEase, Inc. (NASDAQ:NTES - Get Free Report) have earned a consensus rating of "Moderate Buy" from the eleven analysts that are covering the company, Marketbeat reports. Three investment analysts have rated the stock with a hold rating and eight have issued a buy rating on the company. The average 12 month price objective among brokers that have covered the stock in the last year is $153.8889.

Several equities analysts recently commented on the stock. Nomura cut their target price on shares of NetEase from $160.00 to $155.00 and set a "buy" rating for the company in a research note on Friday, February 13th. Barclays cut their target price on shares of NetEase from $135.00 to $132.00 and set an "equal weight" rating for the company in a research note on Thursday, February 12th. Citigroup reiterated a "buy" rating on shares of NetEase in a research note on Wednesday, February 11th. Morgan Stanley restated an "overweight" rating and issued a $154.00 price objective on shares of NetEase in a research note on Monday, March 2nd. Finally, Benchmark restated a "buy" rating on shares of NetEase in a research note on Thursday, February 12th.

Hedge Funds Weigh In On NetEase

A number of hedge funds have recently made changes to their positions in NTES. Brighton Jones LLC raised its stake in shares of NetEase by 1.1% in the 4th quarter. Brighton Jones LLC now owns 10,297 shares of the technology company's stock valued at $919,000 after buying an additional 117 shares in the last quarter. Strs Ohio acquired a new position in shares of NetEase in the 1st quarter valued at $63,000. EverSource Wealth Advisors LLC raised its stake in shares of NetEase by 106.9% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 542 shares of the technology company's stock valued at $73,000 after buying an additional 280 shares in the last quarter. First Trust Advisors LP raised its stake in shares of NetEase by 287.4% in the 2nd quarter. First Trust Advisors LP now owns 91,571 shares of the technology company's stock valued at $12,324,000 after buying an additional 67,934 shares in the last quarter. Finally, Walleye Capital LLC raised its stake in shares of NetEase by 670.9% in the 2nd quarter. Walleye Capital LLC now owns 5,265 shares of the technology company's stock valued at $709,000 after buying an additional 4,582 shares in the last quarter. Institutional investors and hedge funds own 11.07% of the company's stock.

NetEase Price Performance

NASDAQ:NTES opened at $117.98 on Friday. The stock has a market cap of $74.75 billion, a P/E ratio of 16.07, a PEG ratio of 1.52 and a beta of 0.72. NetEase has a one year low of $103.22 and a one year high of $159.55. The company has a fifty day moving average price of $114.62 and a 200 day moving average price of $129.30.

NetEase Increases Dividend

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

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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