NetEase (NASDAQ:NTES) Shares Gap Up - What's Next?

Key Points

• NetEase shares opened significantly higher at $139.09 after closing at $130.97, with the last recorded price at $135.13.
• Several analysts have revised their ratings and price targets for NetEase, with JPMorgan moving to a "neutral" rating while Barclays increased their target from $104 to $118.
• NetEase declared a quarterly dividend of $0.675 per share, representing a yield of 2.0%, with a payout ratio of 38.71%.

NetEase, Inc. (NASDAQ:NTES - Get Free Report)'s share price gapped up before the market opened on Wednesday . The stock had previously closed at $130.97, but opened at $139.09. NetEase shares last traded at $135.13, with a volume of 312,581 shares.

Analysts Set New Price Targets

Several equities analysts have weighed in on the company. Wall Street Zen downgraded NetEase from a "strong-buy" rating to a "buy" rating in a research report on Saturday. JPMorgan Chase & Co. downgraded NetEase from an "overweight" rating to a "neutral" rating and lifted their price objective for the company from $135.00 to $140.00 in a research report on Monday, July 28th. Deutsche Bank Aktiengesellschaft initiated coverage on NetEase in a research report on Monday, May 12th. They issued a "buy" rating and a $130.00 price objective for the company. Finally, Barclays lifted their price objective on NetEase from $104.00 to $118.00 and gave the company an "equal weight" rating in a research report on Friday, May 16th. Two equities research analysts have rated the stock with a hold rating and seven have issued a buy rating to the stock. According to data from MarketBeat.com, NetEase presently has an average rating of "Moderate Buy" and a consensus target price of $120.00.

NetEase Stock Down 0.3%

The stock has a market cap of $81.87 billion, a price-to-earnings ratio of 17.49, a PEG ratio of 4.50 and a beta of 0.67. The stock has a fifty day moving average of $132.01 and a two-hundred day moving average of $114.88.

NetEase Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 11th. Investors of record on Thursday, August 28th will be issued a $0.675 dividend. The ex-dividend date is Thursday, August 28th. This represents a $2.70 dividend on an annualized basis and a yield of 2.1%. NetEase's dividend payout ratio (DPR) is presently 38.71%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Bridgewater Advisors Inc. boosted its holdings in NetEase by 3.3% in the second quarter. Bridgewater Advisors Inc. now owns 2,527 shares of the technology company's stock valued at $332,000 after acquiring an additional 80 shares during the last quarter. Venturi Wealth Management LLC boosted its holdings in NetEase by 3.5% in the second quarter. Venturi Wealth Management LLC now owns 2,527 shares of the technology company's stock valued at $340,000 after acquiring an additional 86 shares during the last quarter. Checchi Capital Advisers LLC lifted its stake in shares of NetEase by 4.6% during the second 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 in the last quarter. Frank Rimerman Advisors LLC lifted its stake in shares of NetEase by 1.6% during the second quarter. Frank Rimerman Advisors LLC now owns 6,422 shares of the technology company's stock worth $864,000 after purchasing an additional 104 shares in the last quarter. Finally, NewSquare Capital LLC lifted its stake in shares of NetEase by 137.2% during the second quarter. NewSquare Capital LLC now owns 185 shares of the technology company's stock worth $25,000 after purchasing an additional 107 shares in the last quarter. Institutional investors and hedge funds own 11.07% of the company's stock.

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.