NetEase, Inc. (NASDAQ:NTES) Receives Average Recommendation of “Buy” from Brokerages

Shares of NetEase, Inc. (NASDAQ:NTESGet Rating) have been assigned a consensus recommendation of “Buy” from the nine brokerages that are presently covering the stock, reports. Eight research analysts have rated the stock with a buy recommendation. The average 1-year price objective among analysts that have covered the stock in the last year is $128.50.

A number of equities analysts have issued reports on NTES shares. JPMorgan Chase & Co. upgraded NetEase from an “underweight” rating to an “overweight” rating and lifted their price target for the company from $60.00 to $120.00 in a research note on Monday, May 16th. HSBC cut their target price on NetEase from $126.00 to $122.00 and set a “buy” rating on the stock in a research note on Wednesday, May 25th. Macquarie started coverage on NetEase in a research note on Tuesday, July 5th. They issued an “outperform” rating and a $129.00 target price on the stock. downgraded NetEase from a “strong-buy” rating to a “buy” rating in a research note on Saturday, July 16th. Finally, The Goldman Sachs Group started coverage on NetEase in a research note on Sunday, April 10th. They issued a “buy” rating and a $132.00 target price on the stock.

Hedge Funds Weigh In On NetEase

Institutional investors have recently bought and sold shares of the company. Bank Julius Baer & Co. Ltd Zurich bought a new stake in shares of NetEase during the second quarter valued at about $31,000. James Investment Research Inc. bought a new stake in shares of NetEase during the second quarter valued at about $34,000. CWM LLC increased its position in shares of NetEase by 127.7% during the second quarter. CWM LLC now owns 444 shares of the technology company’s stock valued at $41,000 after buying an additional 249 shares during the period. Strs Ohio bought a new stake in shares of NetEase during the second quarter valued at about $56,000. Finally, ICICI Prudential Asset Management Co Ltd bought a new stake in shares of NetEase during the fourth quarter valued at about $71,000. Hedge funds and other institutional investors own 21.18% of the company’s stock.

NetEase Price Performance

NTES stock opened at $90.51 on Thursday. The company has a market capitalization of $59.26 billion, a P/E ratio of 23.03, a price-to-earnings-growth ratio of 1.58 and a beta of 0.42. The company has a debt-to-equity ratio of 0.03, a quick ratio of 2.28 and a current ratio of 2.30. NetEase has a 52-week low of $68.62 and a 52-week high of $118.19. The business has a 50-day simple moving average of $95.59 and a two-hundred day simple moving average of $94.33.

NetEase (NASDAQ:NTESGet Rating) last released its quarterly earnings results on Tuesday, May 24th. The technology company reported $1.05 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.98 by $0.07. The business had revenue of $23.56 billion during the quarter, compared to the consensus estimate of $23.12 billion. NetEase had a return on equity of 18.02% and a net margin of 18.56%. The company’s quarterly revenue was up 14.8% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.00 EPS. Research analysts expect that NetEase will post 3.95 EPS for the current fiscal year.

NetEase Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 23rd. Investors of record on Wednesday, June 8th were paid a $0.322 dividend. The ex-dividend date was Tuesday, June 7th. This represents a $1.29 annualized dividend and a yield of 1.42%. NetEase’s payout ratio is 32.57%.

About NetEase

(Get Rating)

NetEase, Inc provides online services focusing on diverse content, community, communication, and commerce in the Peoples' Republic of China and internationally. The company operates in three segments: Online Game Services, Youdao, Cloud Music, and Innovative Businesses and Others. It develops and operates PC and mobile games, as well as offers games licensed from other game developers.

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Analyst Recommendations for NetEase (NASDAQ:NTES)

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