NetEase (NASDAQ:NTES) Cut to “Strong Sell” at BidaskClub

BidaskClub cut shares of NetEase (NASDAQ:NTES) from a sell rating to a strong sell rating in a research report report published on Tuesday, BidAskClub reports.

Several other research firms have also recently weighed in on NTES. Benchmark reiterated a buy rating and issued a $305.00 price objective (up previously from $295.00) on shares of NetEase in a report on Thursday, May 16th. Jefferies Financial Group began coverage on NetEase in a report on Monday. They issued a buy rating and a $274.60 price objective for the company. TH Capital increased their price objective on NetEase from $270.00 to $310.00 and gave the stock a buy rating in a report on Monday, May 13th. Barclays increased their price objective on NetEase from $300.00 to $320.00 and gave the stock an overweight rating in a report on Monday, May 20th. Finally, China Renaissance Securities upgraded NetEase from a hold rating to a buy rating in a report on Thursday, May 16th. One analyst has rated the stock with a sell rating, one has given a hold rating and twelve have issued a buy rating to the company. The stock currently has a consensus rating of Buy and a consensus price target of $276.11.

NTES stock traded up $2.52 during trading on Tuesday, hitting $240.54. 460,789 shares of the company traded hands, compared to its average volume of 562,140. The firm has a market capitalization of $27.93 billion, a price-to-earnings ratio of 35.01, a PEG ratio of 1.67 and a beta of 0.87. NetEase has a 1 year low of $184.60 and a 1 year high of $289.68. The stock has a 50-day moving average of $248.33.

NetEase (NASDAQ:NTES) last issued its earnings results on Wednesday, May 15th. The technology company reported $2.75 earnings per share for the quarter, beating the consensus estimate of $1.86 by $0.89. NetEase had a return on equity of 17.05% and a net margin of 10.94%. The company had revenue of $2.74 billion during the quarter, compared to analysts’ expectations of $2.73 billion. During the same period in the prior year, the business posted $1.59 EPS. NetEase’s quarterly revenue was up 23.0% compared to the same quarter last year. On average, equities analysts expect that NetEase will post 8.56 EPS for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 30th. Investors of record on Friday, August 23rd will be given a dividend of $1.04 per share. This represents a $4.16 dividend on an annualized basis and a yield of 1.73%. The ex-dividend date of this dividend is Thursday, August 22nd. This is a positive change from NetEase’s previous quarterly dividend of $0.69. NetEase’s dividend payout ratio (DPR) is 40.03%.

Institutional investors have recently bought and sold shares of the business. Huntington National Bank increased its holdings in shares of NetEase by 101.0% in the 2nd quarter. Huntington National Bank now owns 209 shares of the technology company’s stock worth $53,000 after purchasing an additional 105 shares in the last quarter. Close Asset Management Ltd increased its holdings in shares of NetEase by 233.3% in the 1st quarter. Close Asset Management Ltd now owns 500 shares of the technology company’s stock worth $121,000 after purchasing an additional 350 shares in the last quarter. Marshall Wace LLP increased its holdings in shares of NetEase by 151.2% in the 1st quarter. Marshall Wace LLP now owns 638 shares of the technology company’s stock worth $154,000 after purchasing an additional 384 shares in the last quarter. Atlas Capital Advisors LLC bought a new stake in shares of NetEase in the 2nd quarter worth $160,000. Finally, Checchi Capital Advisers LLC bought a new stake in shares of NetEase in the 1st quarter worth $200,000. 45.88% of the stock is 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 in four segments: Online Games Services, E-Commerce, Advertising Services, and Innovative Businesses and Other Services. 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.

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Analyst Recommendations for NetEase (NASDAQ:NTES)

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