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

NetEase, Inc. (NASDAQ:NTES)’s share price gapped down prior to trading on Wednesday. The stock had previously closed at $128.03, but opened at $123.60. NetEase shares last traded at $122.35, with a volume of 613,859 shares trading hands.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the company. Sanford C. Bernstein reiterated an “outperform” rating and set a $160.00 price objective on shares of NetEase in a research note on Friday, August 21st. Morgan Stanley restated an “overweight” rating and set a $163.00 price objective on shares of NetEase in a research report on Monday, September 28th. Nomura upped their target price on NetEase from $155.00 to $157.00 and gave the company a “buy” rating in a research report on Tuesday, August 25th. Zacks Research downgraded NetEase from a “hold” rating to a “strong sell” rating in a research report on Tuesday, October 20th. Finally, BNP Paribas Exane initiated coverage on NetEase in a research note on Tuesday, September 22nd. They set an “outperform” rating and a $180.00 target price on the stock. Six equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $159.86.

NetEase Stock Performance

The stock has a fifty day simple moving average of $119.93 and a two-hundred day simple moving average of $120.86. The stock has a market cap of $78.00 billion, a price-to-earnings ratio of 16.79, a P/E/G ratio of 1.54 and a beta of 0.64.

NetEase Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, September 18th. Shareholders of record on Thursday, September 3rd were issued a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date of this dividend was Thursday, September 3rd. This is a drop from NetEase’s previous quarterly dividend of $0.72. NetEase’s payout ratio is currently 26.31%.

Insider Buying and Selling

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

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Bank of America Corp DE grew its stake in shares of NetEase by 111.4% in the first quarter. Bank of America Corp DE now owns 1,325,317 shares of the technology company’s stock worth $148,356,000 after purchasing an additional 698,318 shares during the last quarter. Aberdeen Group plc raised its position in NetEase by 990.1% during the 3rd quarter. Aberdeen Group plc now owns 398,184 shares of the technology company’s stock worth $48,244,000 after purchasing an additional 361,656 shares during the last quarter. Matthews International Capital Management LLC bought a new position in NetEase during the 3rd quarter worth $40,765,000. Renaissance Technologies LLC lifted its holdings in NetEase by 25.2% during the 1st quarter. Renaissance Technologies LLC now owns 1,363,188 shares of the technology company’s stock worth $152,595,000 after buying an additional 274,500 shares during the period. Finally, Pictet Asset Management Holding SA acquired a new position in NetEase during the 3rd quarter worth about $30,143,000. Institutional investors own 11.07% of the company’s stock.

NetEase Company Profile

NetEase, Inc. is a China-based internet technology company best known for developing and publishing online games. Its portfolio includes titles such as Fantasy Westward Journey and Identity V, as well as games for mobile and other platforms. The company serves players in China and international markets. NetEase also operates NetEase Cloud Music, a music streaming and social platform, and Youdao, which provides digital learning services and education technology products. Its businesses span game development and publishing, music, and online learning.