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

Key Points

• NetEase has a consensus analyst rating of “Moderate Buy”, based on coverage from 10 research firms. The average 12-month price target is $158.38.
• Recent analyst actions were mixed but mostly positive, including Buy or Overweight reiterations from Benchmark, Morgan Stanley, and Goldman Sachs. However, Wall Street Zen downgraded the stock from Buy to Hold.
• NetEase stock opened at $129.76 and trades below the recent average analyst target, with a 2.2% dividend yield after its latest quarterly payout. Insider activity also included a sale by the company’s general counsel, while institutional ownership remains relatively modest at 11.07%.

Shares of NetEase, Inc. (NASDAQ:NTES - Get Free Report) have been given a consensus rating of "Moderate Buy" by the ten research firms that are currently covering the stock, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a hold rating, seven have assigned a buy rating and one has issued a strong buy rating on the company. The average twelve-month target price among brokerages that have issued a report on the stock in the last year is $158.3750.

A number of analysts have recently issued reports on the stock. Benchmark restated a "buy" rating on shares of NetEase in a research note on Friday, May 22nd. Morgan Stanley reissued an "overweight" rating and issued a $158.00 price target on shares of NetEase in a report on Tuesday, May 26th. The Goldman Sachs Group set a $169.00 price objective on shares of NetEase in a research report on Wednesday, July 1st. Wall Street Zen cut NetEase from a "buy" rating to a "hold" rating in a report on Monday, July 6th. Finally, Zacks Research raised NetEase from a "hold" rating to a "strong-buy" rating in a research report on Monday, June 8th.

NetEase Price Performance

Shares of NetEase stock opened at $129.76 on Thursday. The business has a fifty day simple moving average of $122.56 and a two-hundred day simple moving average of $122.43. NetEase has a 1 year low of $106.06 and a 1 year high of $159.55. The company has a market capitalization of $82.84 billion, a price-to-earnings ratio of 17.23, a P/E/G ratio of 1.66 and a beta of 0.72.

NetEase Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 18th. Shareholders of record on Friday, June 5th were issued a $0.72 dividend. This represents a $2.88 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date of this dividend was Friday, June 5th. NetEase's dividend payout ratio is currently 38.11%.

Insiders Place Their Bets

In other news, General Counsel Paul William Boltz, 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 sale, the general counsel owned 12,223 shares of the company's stock, valued at approximately $1,568,210.90. This trade represents a 45.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 54.70% of the stock is owned by insiders.

Hedge Funds Weigh In On NetEase

Institutional investors and hedge funds have recently modified their holdings of the business. V Square Quantitative Management LLC bought a new stake in NetEase in the 1st quarter valued at about $25,000. Atlas Capital Advisors Inc. bought a new position in shares of NetEase during the fourth quarter worth approximately $47,000. Smartleaf Asset Management LLC raised its position in shares of NetEase by 3,381.8% in the second quarter. Smartleaf Asset Management LLC now owns 383 shares of the technology company's stock valued at $51,000 after buying an additional 372 shares in the last quarter. Harbour Investments Inc. raised its position in shares of NetEase by 7,480.0% in the fourth quarter. Harbour Investments Inc. now owns 379 shares of the technology company's stock valued at $52,000 after buying an additional 374 shares in the last quarter. Finally, MidFirst Bank acquired a new stake in shares of NetEase in the fourth quarter valued at approximately $57,000. 11.07% of the stock is currently owned by institutional investors and hedge funds.

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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