NetEase (NASDAQ:NTES) Shares Gap Up - Still a Buy?

Key Points

• NetEase shares saw a significant opening increase from $131.89 to $136.90, concluding trading at $137.20, indicating a growing interest in the stock.
• Several analysts have adjusted their ratings on NetEase, with Zacks downgrading to "hold" and JPMorgan Chase raising their price target to $140.00 while changing the rating to "neutral".
• The company announced a quarterly dividend of $0.675, translating to an annualized yield of 2.0%, which suggests a stable return for investors.

Shares of NetEase, Inc. (NASDAQ:NTES - Get Free Report) gapped up prior to trading on Monday . The stock had previously closed at $131.89, but opened at $136.90. NetEase shares last traded at $137.20, with a volume of 434,283 shares changing hands.

Wall Street Analysts Forecast Growth

NTES has been the subject of several research reports. Zacks Research downgraded shares of NetEase from a "strong-buy" rating to a "hold" rating in a research report on Friday, August 15th. Wall Street Zen downgraded shares of NetEase from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 16th. Barclays set a $120.00 price objective on shares of NetEase and gave the stock an "equal weight" rating in a research report on Monday, August 18th. Deutsche Bank Aktiengesellschaft initiated coverage on shares of NetEase in a research report on Monday, May 12th. They set a "buy" rating and a $130.00 price objective for the company. Finally, JPMorgan Chase & Co. downgraded shares of NetEase from an "overweight" rating to a "neutral" rating and upped their price objective for the stock from $135.00 to $140.00 in a research report on Monday, July 28th. Five equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $122.71.

NetEase Trading Up 3.5%

The stock has a market capitalization of $86.46 billion, a price-to-earnings ratio of 18.47, a PEG ratio of 1.74 and a beta of 0.67. The stock's 50 day moving average is $131.93 and its 200 day moving average is $116.03.

NetEase Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 11th. Investors of record on Thursday, August 28th will be paid a $0.675 dividend. This represents a $2.70 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date of this dividend is Thursday, August 28th. NetEase's dividend payout ratio is presently 36.40%.

Institutional Investors Weigh In On NetEase

Several hedge funds have recently modified their holdings of NTES. Brighton Jones LLC boosted 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 worth $919,000 after purchasing an additional 117 shares during the last quarter. Raymond James Financial Inc. acquired a new stake in shares of NetEase during the 4th quarter worth about $2,192,000. Mariner LLC boosted its stake in shares of NetEase by 13.2% during the 4th quarter. Mariner LLC now owns 8,569 shares of the technology company's stock worth $764,000 after purchasing an additional 998 shares during the last quarter. NewEdge Advisors LLC boosted its stake in shares of NetEase by 14.3% during the 4th quarter. NewEdge Advisors LLC now owns 3,850 shares of the technology company's stock worth $343,000 after purchasing an additional 481 shares during the last quarter. Finally, First Trust Advisors LP boosted its stake in shares of NetEase by 129.0% during the 4th quarter. First Trust Advisors LP now owns 5,821 shares of the technology company's stock worth $519,000 after purchasing an additional 3,279 shares during the last quarter. 11.07% of the stock is owned by institutional investors and hedge funds.

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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