NetEase (NASDAQ:NTES) Shares Gap Down – Should You Sell?

NetEase, Inc. (NASDAQ:NTES) shares gapped down before the market opened on Tuesday. The stock had previously closed at $118.32, but opened at $113.92. NetEase shares last traded at $114.3750, with a volume of 103,970 shares trading hands.

Analysts Set New Price Targets

A number of analysts have issued reports on NTES shares. Sanford C. Bernstein reiterated an “outperform” rating and issued a $160.00 target price on shares of NetEase in a research note on Friday, August 21st. Zacks Research lowered shares of NetEase from a “hold” rating to a “strong sell” rating in a research note on Tuesday, October 20th. Nomura raised their price target on shares of NetEase from $155.00 to $157.00 and gave the company a “buy” rating in a report on Tuesday, August 25th. The Goldman Sachs Group set a $169.00 price objective on shares of NetEase in a research note on Wednesday, July 1st. Finally, Weiss Ratings cut shares of NetEase from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, August 4th. Six equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $159.86.

NetEase Trading Down 1.4%

The stock has a market cap of $72.00 billion, a price-to-earnings ratio of 15.49, a price-to-earnings-growth ratio of 1.39 and a beta of 0.68. The stock has a fifty day simple moving average of $120.43 and a 200-day simple moving average of $121.61.

NetEase Cuts Dividend

The business 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 is a decrease from NetEase’s previous quarterly dividend of $0.72. This represents a $1.92 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date of this dividend was Thursday, September 3rd. NetEase’s dividend payout ratio (DPR) is currently 26.31%.

Insider Activity at NetEase

In related news, VP Aileen Mo sold 716 shares of the stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $120.64, for a total value of $86,378.24. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 54.70% of the company’s stock.

Hedge Funds Weigh In On NetEase

Several institutional investors and hedge funds have recently added to or reduced their stakes in NTES. EverSource Wealth Advisors LLC raised its holdings in NetEase by 16.0% during the 1st quarter. EverSource Wealth Advisors LLC now owns 777 shares of the technology company’s stock worth $87,000 after purchasing an additional 107 shares during the last quarter. Mission Wealth Management LP boosted its stake in shares of NetEase by 4.4% in the 2nd quarter. Mission Wealth Management LP now owns 2,631 shares of the technology company’s stock valued at $337,000 after purchasing an additional 110 shares during the last quarter. Rehmann Capital Advisory Group boosted its stake in shares of NetEase by 4.5% in the 2nd quarter. Rehmann Capital Advisory Group now owns 2,716 shares of the technology company’s stock valued at $348,000 after purchasing an additional 117 shares during the last quarter. Arkadios Wealth Advisors boosted its stake in shares of NetEase by 6.4% in the 1st quarter. Arkadios Wealth Advisors now owns 1,978 shares of the technology company’s stock valued at $221,000 after purchasing an additional 119 shares during the last quarter. Finally, Summitry LLC grew its position in shares of NetEase by 4.7% during the 1st quarter. Summitry LLC now owns 2,901 shares of the technology company’s stock worth $325,000 after buying an additional 129 shares during the period. 11.07% of the stock is currently owned by institutional investors.

About NetEase

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.