NetEase, Inc. (NASDAQ:NTES) Sees Large Decrease in Short Interest

Key Points

• NetEase, Inc. saw a significant reduction in short interest in September, dropping 33.4% to 2,110,000 shares, which represents only 0.3% of its total shares.
• Multiple analysts upgraded NetEase's stock ratings, with JPMorgan raising the target price from $138.00 to $190.00, indicating strong expected growth for the company.
• NetEase recently declared a quarterly dividend of $0.675 per share, yielding 1.8%, with a payout ratio of 30.72%.

NetEase, Inc. (NASDAQ:NTES - Get Free Report) was the recipient of a significant drop in short interest in the month of September. As of September 30th, there was short interest totaling 2,110,000 shares, a drop of 33.4% from the September 15th total of 3,170,000 shares. Approximately 0.3% of the shares of the stock are short sold. Based on an average daily volume of 714,000 shares, the short-interest ratio is presently 3.0 days. Based on an average daily volume of 714,000 shares, the short-interest ratio is presently 3.0 days. Approximately 0.3% of the shares of the stock are short sold.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on the stock. JPMorgan Chase & Co. upgraded shares of NetEase from a "neutral" rating to an "overweight" rating and lifted their target price for the company from $138.00 to $190.00 in a research note on Friday, October 10th. Barclays set a $120.00 target price on shares of NetEase and gave the company an "equal weight" rating in a research note on Monday, August 18th. Arete Research upgraded shares of NetEase to a "strong-buy" rating in a research note on Wednesday, September 3rd. Arete raised shares of NetEase from a "sell" rating to a "buy" rating and set a $150.00 price target for the company in a report on Wednesday, September 3rd. Finally, Wall Street Zen raised shares of NetEase from a "buy" rating to a "strong-buy" rating in a report on Friday, October 3rd. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, NetEase has a consensus rating of "Moderate Buy" and a consensus target price of $142.30.

Institutional Investors Weigh In On NetEase

Several institutional investors have recently added to or reduced their stakes in NTES. Bridgewater Advisors Inc. lifted its position in NetEase by 3.3% during the 2nd quarter. Bridgewater Advisors Inc. now owns 2,527 shares of the technology company's stock worth $332,000 after buying an additional 80 shares in the last quarter. Venturi Wealth Management LLC increased its stake in shares of NetEase by 3.5% during the 2nd quarter. Venturi Wealth Management LLC now owns 2,527 shares of the technology company's stock worth $340,000 after purchasing an additional 86 shares during the last quarter. AdvisorNet Financial Inc increased its stake in shares of NetEase by 7.2% during the 3rd quarter. AdvisorNet Financial Inc now owns 1,501 shares of the technology company's stock worth $228,000 after purchasing an additional 101 shares during the last quarter. Checchi Capital Advisers LLC increased its stake in shares of NetEase by 4.6% during the 2nd quarter. Checchi Capital Advisers LLC now owns 2,347 shares of the technology company's stock worth $316,000 after purchasing an additional 103 shares during the last quarter. Finally, Frank Rimerman Advisors LLC grew its stake in NetEase by 1.6% in the 2nd quarter. Frank Rimerman Advisors LLC now owns 6,422 shares of the technology company's stock valued at $864,000 after buying an additional 104 shares during the last quarter. 11.07% of the stock is owned by institutional investors.

NetEase Price Performance

Shares of NASDAQ NTES traded down $5.76 during midday trading on Wednesday, reaching $146.10. 155,984 shares of the stock were exchanged, compared to its average volume of 1,107,377. The business has a 50-day simple moving average of $144.51 and a two-hundred day simple moving average of $129.00. The company has a market capitalization of $92.57 billion, a price-to-earnings ratio of 19.76, a P/E/G ratio of 2.02 and a beta of 0.67. NetEase has a 12 month low of $75.88 and a 12 month high of $159.55.

NetEase Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 11th. Investors of record on Thursday, August 28th were given a $0.675 dividend. This represents a $2.70 annualized dividend and a yield of 1.8%. The ex-dividend date of this dividend was Thursday, August 28th. NetEase's payout ratio is currently 30.72%.

NetEase Company Profile

NetEase, Inc engages in online games, music streaming, online intelligent learning services, and internet content services businesses in China and internationally . The company operates through Games and Related Value-Added Services, Youdao, Cloud Music, and Innovative Businesses and Others segments.

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