NetEase (NASDAQ:NTES) Downgraded to "Hold" Rating by Zacks Research

Key Points

• Zacks Research downgraded NetEase from “strong buy” to “hold,” though the broader analyst consensus remains “Moderate Buy,” with seven Buy ratings and three Holds.
• Analysts’ average price target is $158.38, above NetEase’s Monday opening price of $127.35; the stock has traded between $106.06 and $159.55 over the past year.
• NetEase General Counsel Paul William Boltz, Jr. sold 10,000 shares for approximately $1.28 million, reducing his ownership by 45%; insiders collectively own 54.70% of the company.

NetEase (NASDAQ:NTES - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a note issued to investors on Monday,Zacks.com reports.

A number of other analysts have also recently commented on the stock. Benchmark reaffirmed a "buy" rating on shares of NetEase in a research report on Friday, May 22nd. The Goldman Sachs Group set a $169.00 price objective on NetEase in a research report on Wednesday, July 1st. Weiss Ratings upgraded NetEase from a "hold (c)" rating to a "hold (c+)" rating in a research report on Monday, July 20th. Morgan Stanley reaffirmed an "overweight" rating and set a $158.00 target price on shares of NetEase in a research note on Tuesday, May 26th. Finally, Wall Street Zen upgraded NetEase from a "hold" rating to a "buy" rating in a report on Saturday. Seven analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $158.38.

NetEase Stock Up 2.9%

Shares of NetEase stock opened at $127.35 on Monday. The stock has a market cap of $81.54 billion, a price-to-earnings ratio of 16.91, a P/E/G ratio of 1.60 and a beta of 0.72. NetEase has a twelve month low of $106.06 and a twelve month high of $159.55. The company's fifty day moving average is $124.43 and its 200 day moving average is $121.47.

Insider Activity at NetEase

In related news, General Counsel Paul William Boltz, Jr. sold 10,000 shares of the stock in a transaction that occurred 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 directly 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 sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 54.70% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On NetEase

Several large investors have recently added to or reduced their stakes in the company. V Square Quantitative Management LLC purchased a new stake in NetEase during the 1st quarter worth about $25,000. Atlas Capital Advisors Inc. bought a new stake in NetEase during the fourth quarter valued at approximately $47,000. Harbour Investments Inc. increased its holdings in shares of NetEase by 7,480.0% in the 4th quarter. Harbour Investments Inc. now owns 379 shares of the technology company's stock worth $52,000 after buying an additional 374 shares during the last quarter. Smartleaf Asset Management LLC raised its position in shares of NetEase by 3,381.8% during the 2nd 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. Finally, MidFirst Bank bought a new stake in shares of NetEase during the 4th quarter worth $57,000. Hedge funds and other institutional investors own 11.07% of the company's stock.

About NetEase

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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