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

NetEase, Inc. (NASDAQ:NTES) gapped down before the market opened on Wednesday . The stock had previously closed at $137.15, but opened at $133.31. NetEase shares last traded at $132.2350, with a volume of 194,058 shares.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on NTES. JPMorgan Chase & Co. upgraded NetEase from a “neutral” rating to an “overweight” rating and raised their price target for the stock from $138.00 to $190.00 in a research note on Friday, October 10th. Sanford C. Bernstein set a $155.00 price target on shares of NetEase in a research report on Friday, November 21st. Weiss Ratings reissued a “hold (c)” rating on shares of NetEase in a research report on Monday, December 22nd. Citigroup restated a “buy” rating on shares of NetEase in a research report on Friday, November 21st. Finally, Wall Street Zen downgraded NetEase from a “buy” rating to a “hold” rating in a report on Sunday, November 23rd. Seven research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, NetEase currently has an average rating of “Moderate Buy” and an average price target of $156.13.

NetEase Stock Down 3.9%

The business has a 50 day moving average price of $138.97 and a 200-day moving average price of $139.99. The firm has a market cap of $83.52 billion, a price-to-earnings ratio of 16.83, a price-to-earnings-growth ratio of 1.54 and a beta of 0.67.

NetEase Cuts Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, December 19th. Investors of record on Friday, December 5th were issued a $0.57 dividend. The ex-dividend date of this dividend was Friday, December 5th. This represents a $2.28 annualized dividend and a yield of 1.7%. NetEase’s dividend payout ratio is currently 28.99%.

Hedge Funds Weigh In On NetEase

Several institutional investors have recently made changes to their positions in the stock. NewSquare Capital LLC boosted its stake in NetEase by 137.2% during the 2nd quarter. NewSquare Capital LLC now owns 185 shares of the technology company’s stock valued at $25,000 after purchasing an additional 107 shares during the period. Private Trust Co. NA increased its position in shares of NetEase by 266.0% during the 2nd quarter. Private Trust Co. NA now owns 194 shares of the technology company’s stock valued at $26,000 after purchasing an additional 141 shares during the period. Cornerstone Planning Group LLC purchased a new stake in shares of NetEase in the 3rd quarter valued at approximately $33,000. USA Financial Formulas purchased a new stake in shares of NetEase in the second quarter valued at $30,000. Finally, Richardson Financial Services Inc. purchased a new position in shares of NetEase during the second quarter valued at $33,000. 11.07% of the stock is owned by institutional investors.

About NetEase

NetEase, Inc (NASDAQ: NTES) is a Chinese technology company headquartered in Hangzhou that develops and operates Internet services and products. Founded in 1997 by William Ding (Ding Lei), the company has grown from an early web portal and e-mail provider into a diversified online services group. William Ding has served as the company’s founder and long-time leader, guiding its expansion into games, digital content and consumer services.

The company’s primary business is interactive entertainment: NetEase Games designs, develops and publishes PC and mobile games for domestic and international audiences, offering a mix of self-developed franchises and titles published under licensing and strategic partnerships.