NetEase (NTES) Earns Buy Rating from Jefferies Financial Group

Jefferies Financial Group restated their buy rating on shares of NetEase (NASDAQ:NTES) in a research note released on Tuesday. The firm currently has a $254.00 price objective on the technology company’s stock.

Several other research analysts also recently weighed in on the company. Nomura upped their price target on NetEase from $265.00 to $267.00 and gave the stock a buy rating in a research note on Friday, November 16th. Barclays set a $270.00 price target on NetEase and gave the stock a hold rating in a research note on Friday, November 16th. Zacks Investment Research downgraded NetEase from a hold rating to a sell rating in a research note on Friday, November 16th. Benchmark dropped their price target on NetEase from $320.00 to $295.00 and set a buy rating for the company in a research note on Thursday, November 15th. Finally, BidaskClub upgraded NetEase from a buy rating to a strong-buy rating in a research note on Wednesday, November 7th. Two analysts have rated the stock with a sell rating, two have assigned a hold rating, nine have assigned a buy rating and two have given a strong buy rating to the company. The stock has a consensus rating of Buy and an average target price of $298.10.

NTES stock opened at $225.75 on Tuesday. NetEase has a 1-year low of $184.60 and a 1-year high of $377.64. The company has a market capitalization of $30.68 billion, a price-to-earnings ratio of 18.19, a price-to-earnings-growth ratio of 1.53 and a beta of 0.96.

NetEase (NASDAQ:NTES) last posted its quarterly earnings results on Wednesday, November 14th. The technology company reported $1.80 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $2.10 by ($0.30). NetEase had a return on equity of 12.66% and a net margin of 9.22%. The business had revenue of $2.45 billion during the quarter, compared to the consensus estimate of $2.42 billion. During the same quarter in the previous year, the company earned $3.43 earnings per share. The company’s revenue for the quarter was up 30.9% compared to the same quarter last year. On average, equities analysts anticipate that NetEase will post 7.27 earnings per share for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 7th. Stockholders of record on Friday, November 30th will be issued a dividend of $0.45 per share. The ex-dividend date is Thursday, November 29th. This represents a $1.80 annualized dividend and a dividend yield of 0.80%. NetEase’s dividend payout ratio (DPR) is 19.58%.

Several institutional investors and hedge funds have recently modified their holdings of NTES. Steadfast Capital Management LP purchased a new stake in shares of NetEase during the 3rd quarter worth approximately $276,011,000. Vontobel Asset Management Inc. purchased a new stake in shares of NetEase during the 2nd quarter worth approximately $256,375,000. Capital World Investors purchased a new stake in shares of NetEase during the 3rd quarter worth approximately $117,389,000. EastBay Asset Management LLC purchased a new stake in shares of NetEase during the 2nd quarter worth approximately $67,008,000. Finally, Nordea Investment Management AB purchased a new stake in shares of NetEase during the 3rd quarter worth approximately $51,884,000. 43.64% of the stock is currently owned by institutional investors and hedge funds.

About NetEase

NetEase, Inc operates an interactive online community in the People's Republic of China. The company operates through Online Game Services; E-Commerce; Advertising Services; and Email and Others segments. It offers various games in a range of genres through mobile devices and PCs, including role playing games, MMORPGs, battle arena games, simulation games, collectible card games, first-person shooter games, sandbox games, and other types of games to the Chinese market.

Further Reading: How to calculate the intrinsic value of a stock

Analyst Recommendations for NetEase (NASDAQ:NTES)

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