NetEase (NASDAQ:NTES) Stock Crosses Above 200 Day Moving Average - Should You Sell?

Key Points

• NetEase shares crossed above their 200-day moving average, trading at $121.26 after reaching $122.15; the article reports the stock was up 4.3%.
• Analyst sentiment is broadly positive: MarketBeat’s consensus rating is “Moderate Buy,” with an average price target of $159.86.
• NetEase’s quarterly dividend fell from $0.72 to $0.48 per share, equivalent to an annualized $1.92 and a 1.6% yield.

NetEase, Inc. (NASDAQ:NTES - Get Free Report) shares passed above its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of $120.99 and traded as high as $122.15. NetEase shares last traded at $121.26, with a volume of 985,366 shares traded.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on the stock. Nomura lifted their price target on shares of NetEase from $155.00 to $157.00 and gave the company a "buy" rating in a research report on Tuesday, August 25th. Morgan Stanley reissued an "overweight" rating and issued a $163.00 price objective on shares of NetEase in a research note on Monday, September 28th. BNP Paribas Exane initiated coverage on shares of NetEase in a research report on Tuesday, September 22nd. They set an "outperform" rating and a $180.00 target price for the company. Sanford C. Bernstein reissued an "outperform" rating and set a $160.00 price objective on shares of NetEase in a research report on Friday, August 21st. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of NetEase in a research report on Monday. Six investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $159.86.

NetEase Trading Up 4.3%

The company has a market capitalization of $77.64 billion, a PE ratio of 16.70, a price-to-earnings-growth ratio of 1.38 and a beta of 0.64. The business's fifty day moving average is $119.47 and its two-hundred day moving average is $120.99.

NetEase Cuts Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 18th. Stockholders of record on Thursday, September 3rd were given a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date of this dividend was Thursday, September 3rd. This is a negative change from NetEase's previous quarterly dividend of $0.72. NetEase's payout ratio is presently 26.31%.

Insider Transactions at NetEase

In other NetEase news, VP Aileen Mo sold 716 shares of the firm's stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $120.64, for a total transaction of $86,378.24. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 54.70% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in NTES. Renaissance Technologies LLC boosted its stake in NetEase by 25.2% in the 1st quarter. Renaissance Technologies LLC now owns 1,363,188 shares of the technology company's stock worth $152,595,000 after purchasing an additional 274,500 shares in the last quarter. Bank of America Corp DE increased its holdings in shares of NetEase by 111.4% during the 1st quarter. Bank of America Corp DE now owns 1,325,317 shares of the technology company's stock valued at $148,356,000 after purchasing an additional 698,318 shares in the last quarter. Dimensional Fund Advisors LP increased its stake in shares of NetEase by 16.9% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,079,110 shares of the technology company's stock valued at $120,697,000 after purchasing an additional 155,784 shares in the last quarter. Temasek Holdings Private Ltd grew its stake in NetEase by 50.7% in the 1st quarter. Temasek Holdings Private Ltd now owns 708,114 shares of the technology company's stock valued at $79,266,000 after acquiring an additional 238,386 shares during the period. Finally, Lazard Asset Management LLC raised its position in shares of NetEase by 64.2% during the 1st quarter. Lazard Asset Management LLC now owns 581,720 shares of the technology company's stock worth $65,118,000 after purchasing an additional 227,433 shares during the last quarter. Hedge funds and other institutional investors own 11.07% of the company's stock.

NetEase Company Profile

NetEase, Inc is a China-based internet and technology company founded in 1997 by William Ding. The company develops and operates online games for personal computers and mobile devices, serving players in China and international markets.

NetEase Games is the company's primary business and offers original titles such as Fantasy Westward Journey, Justice, and Identity V, along with games developed through partnerships and international studios. NetEase also publishes and distributes games in overseas markets through its global operations.

Beyond gaming, NetEase operates NetEase Cloud Music, an online music streaming and social platform, and Youdao, which provides educational technology, learning tools, and related content and services.

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