NetEase (NASDAQ:NTES) Shares Gap Down – Here’s Why

NetEase, Inc. (NASDAQ:NTES)’s share price gapped down before the market opened on Monday . The stock had previously closed at $82.42, but opened at $80.45. NetEase shares last traded at $81.35, with a volume of 191,368 shares traded.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on the company. Jefferies Financial Group decreased their price target on NetEase from $126.00 to $103.00 and set a “buy” rating for the company in a report on Thursday, August 22nd. StockNews.com downgraded NetEase from a “strong-buy” rating to a “buy” rating in a report on Saturday, July 20th. Morgan Stanley reiterated an “equal weight” rating and set a $100.00 price target on shares of NetEase in a report on Friday, July 5th. Bank of America reduced their target price on NetEase from $142.00 to $120.00 and set a “buy” rating for the company in a research note on Friday, August 23rd. Finally, Barclays dropped their target price on shares of NetEase from $104.00 to $82.00 and set an “equal weight” rating on the stock in a research report on Monday, August 26th. Two investment analysts have rated the stock with a hold rating and five have issued a buy rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $112.67.

NetEase Price Performance

The firm has a market capitalization of $52.05 billion, a P/E ratio of 12.78, a P/E/G ratio of 1.96 and a beta of 0.55. The firm’s 50 day simple moving average is $85.42 and its two-hundred day simple moving average is $90.99.

NetEase (NASDAQ:NTES) last announced its quarterly earnings results on Thursday, August 22nd. The technology company reported $12.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.62 by $10.43. NetEase had a net margin of 26.98% and a return on equity of 22.30%. The company had revenue of $25.49 billion for the quarter, compared to analysts’ expectations of $26.01 billion. During the same quarter in the previous year, the company earned $1.75 earnings per share. NetEase’s quarterly revenue was up 6.1% on a year-over-year basis. As a group, equities research analysts forecast that NetEase, Inc. will post 6.05 EPS for the current year.

NetEase Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, September 20th. Investors of record on Friday, September 6th were given a dividend of $0.435 per share. The ex-dividend date of this dividend was Friday, September 6th. This represents a $1.74 dividend on an annualized basis and a yield of 2.15%. NetEase’s dividend payout ratio (DPR) is 26.82%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Allspring Global Investments Holdings LLC bought a new position in NetEase during the third quarter valued at approximately $76,000. Blue Trust Inc. grew its stake in shares of NetEase by 44.6% in the 3rd quarter. Blue Trust Inc. now owns 4,509 shares of the technology company’s stock worth $431,000 after buying an additional 1,391 shares in the last quarter. Marshall Financial Group LLC grew its stake in shares of NetEase by 2.2% in the 3rd quarter. Marshall Financial Group LLC now owns 18,254 shares of the technology company’s stock worth $1,707,000 after buying an additional 386 shares in the last quarter. Naviter Wealth LLC grew its stake in shares of NetEase by 28.4% in the 3rd quarter. Naviter Wealth LLC now owns 8,427 shares of the technology company’s stock worth $788,000 after buying an additional 1,865 shares in the last quarter. Finally, Vontobel Holding Ltd. grew its stake in shares of NetEase by 154.4% in the 3rd quarter. Vontobel Holding Ltd. now owns 72,220 shares of the technology company’s stock worth $6,753,000 after buying an additional 43,836 shares in the last quarter. Institutional investors own 11.07% of the company’s stock.

About NetEase

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.