NetEase (NASDAQ:NTES) Issues Earnings Results

Key Points

• NetEase reported mixed quarterly results: EPS came in at $1.80, below the $2.31 analyst consensus, while revenue of $4.43 billion exceeded expectations of $4.33 billion.
• Shares rose 2.0% to open at $127.25, with the company valued at approximately $81.47 billion. NetEase reported a 29.85% net margin and a 21.04% return on equity.
• Analyst sentiment remains positive but has softened, with a consensus “Moderate Buy” rating and an average price target of $158.38; several firms recently downgraded the stock to “Hold.”

NetEase (NASDAQ:NTES - Get Free Report) posted its earnings results on Thursday. The technology company reported $1.80 EPS for the quarter, missing analysts' consensus estimates of $2.31 by ($0.51), FiscalAI reports. NetEase had a net margin of 29.85% and a return on equity of 21.04%. The business had revenue of $4.43 billion for the quarter, compared to analysts' expectations of $4.33 billion.

NetEase Trading Up 2.0%

NTES opened at $127.25 on Thursday. NetEase has a 12-month low of $106.06 and a 12-month high of $159.55. The firm has a market capitalization of $81.47 billion, a PE ratio of 16.90, a P/E/G ratio of 1.62 and a beta of 0.73. The firm has a 50 day moving average of $126.85 and a two-hundred day moving average of $120.57.

Insider Buying and Selling

In other news, General Counsel Paul William Boltz, Jr. sold 10,000 shares of the company's stock in a transaction on Monday, June 29th. The shares were sold at an average price of $128.30, for a total value of $1,283,000.00. Following the sale, the general counsel directly owned 12,223 shares of the company's stock, valued at $1,568,210.90. This represents a 45.00% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 54.70% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in NTES. Brighton Jones LLC raised its stake in shares of NetEase by 1.1% during 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 during the last quarter. Integrated Wealth Concepts LLC acquired a new position in shares of NetEase in the 3rd quarter valued at about $236,000. Empowered Funds LLC purchased a new stake in shares of NetEase in the fourth quarter worth about $218,000. Baird Financial Group Inc. purchased a new stake in shares of NetEase in the second quarter worth about $216,000. Finally, United Capital Financial Advisors LLC acquired a new stake in NetEase during the third quarter worth about $210,000. 11.07% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the stock. Zacks Research lowered shares of NetEase from a "strong-buy" rating to a "hold" rating in a report on Monday, July 27th. Weiss Ratings lowered NetEase from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, August 4th. Morgan Stanley reaffirmed an "overweight" rating and set a $158.00 target price on shares of NetEase in a research report on Tuesday, May 26th. The Goldman Sachs Group set a $169.00 price target on NetEase in a report on Wednesday, July 1st. Finally, Wall Street Zen cut NetEase from a "buy" rating to a "hold" rating in a research note on Sunday, August 2nd. Seven research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, NetEase presently has a consensus rating of "Moderate Buy" and an average price target of $158.38.

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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