NetEase (NASDAQ:NTES) Shares Gap Down - Here's What Happened

Key Points

• NetEase shares gapped down before Wednesday’s trading, opening at $123.55 after closing at $129.55 the prior day and last trading around $122.69.
• Analysts remain mostly positive on the stock, with multiple firms maintaining or upgrading ratings and the consensus still at “Moderate Buy” with an average price target of $158.38.
• Recent corporate activity included a quarterly dividend of $0.72 per share and an insider sale by General Counsel Paul William Boltz, Jr. of 10,000 shares at $128.30.

NetEase, Inc. (NASDAQ:NTES - Get Free Report)'s share price gapped down prior to trading on Wednesday . The stock had previously closed at $129.55, but opened at $123.55. NetEase shares last traded at $122.6930, with a volume of 269,980 shares traded.

Analyst Upgrades and Downgrades

Several analysts have issued reports on NTES shares. Morgan Stanley reissued an "overweight" rating and issued a $158.00 price objective on shares of NetEase in a research note on Tuesday, May 26th. Zacks Research upgraded NetEase from a "hold" rating to a "strong-buy" rating in a report on Monday, June 8th. The Goldman Sachs Group set a $169.00 price target on NetEase in a research note 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, Benchmark reaffirmed a "buy" rating on shares of NetEase in a research report on Friday, May 22nd. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $158.38.

NetEase Stock Performance

The company has a market cap of $77.09 billion, a P/E ratio of 16.00, a price-to-earnings-growth ratio of 1.74 and a beta of 0.72. The business's fifty day moving average is $123.74 and its two-hundred day moving average is $122.22.

NetEase Cuts Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, June 18th. Stockholders of record on Friday, June 5th were paid a dividend of $0.72 per share. This represents a $2.88 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend was Friday, June 5th. NetEase's payout ratio is currently 38.11%.

Insider Activity

In related news, General Counsel Paul William Boltz, Jr. sold 10,000 shares of the business's stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $128.30, for a total value of $1,283,000.00. Following the completion of the sale, the general counsel owned 12,223 shares in the company, valued at approximately $1,568,210.90. The trade was a 45.00% decrease in their ownership of the stock. The sale was disclosed in a document filed 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

Institutional investors have recently bought and sold shares of the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of NetEase by 68,860.6% in the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 8,551,117 shares of the technology company's stock worth $1,299,684,000 after buying an additional 8,538,717 shares during the period. Renaissance Technologies LLC increased its stake in shares of NetEase by 25.2% during the first quarter. Renaissance Technologies LLC now owns 1,363,188 shares of the technology company's stock valued at $152,595,000 after buying an additional 274,500 shares during the period. Bank of America Corp DE raised its holdings in shares of NetEase by 111.4% in the first quarter. Bank of America Corp DE now owns 1,325,317 shares of the technology company's stock valued at $148,356,000 after acquiring an additional 698,318 shares in the last quarter. Dimensional Fund Advisors LP raised its holdings in shares of NetEase by 16.9% in the first quarter. Dimensional Fund Advisors LP now owns 1,079,110 shares of the technology company's stock valued at $120,697,000 after acquiring an additional 155,784 shares in the last quarter. Finally, Man Group plc lifted its stake in NetEase by 7.3% in the third quarter. Man Group plc now owns 1,055,122 shares of the technology company's stock worth $160,368,000 after acquiring an additional 71,966 shares during the period. 11.07% of the stock is currently owned by hedge funds and other institutional investors.

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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