NetEase (NASDAQ:NTES) Shares Gap Up – Time to Buy?

NetEase, Inc. (NASDAQ:NTES) shares gapped up before the market opened on Wednesday . The stock had previously closed at $130.82, but opened at $135.93. NetEase shares last traded at $134.5730, with a volume of 177,010 shares traded.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on NTES. Benchmark restated a “buy” rating on shares of NetEase in a report on Friday, May 22nd. Morgan Stanley restated an “overweight” rating and issued a $158.00 price target on shares of NetEase in a research note on Tuesday, May 26th. The Goldman Sachs Group set a $169.00 price objective on NetEase in a research note on Wednesday, July 1st. Weiss Ratings reissued a “hold (c)” rating on shares of NetEase in a research note on Thursday, June 18th. Finally, Wall Street Zen lowered NetEase from a “buy” rating to a “hold” rating in a research report on Monday. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $158.38.

NetEase Stock Up 0.5%

The firm has a 50-day simple moving average of $121.49 and a 200 day simple moving average of $122.66. The company has a market cap of $85.49 billion, a price-to-earnings ratio of 17.78, a price-to-earnings-growth ratio of 1.73 and a beta of 0.72.

NetEase Cuts Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, June 18th. Shareholders of record on Friday, June 5th were paid a $0.72 dividend. The ex-dividend date was Friday, June 5th. This represents a $2.88 dividend on an annualized basis and a yield of 2.2%. NetEase’s payout ratio is currently 38.11%.

Insider Buying and Selling at NetEase

In other news, General Counsel Paul William Boltz, Jr. sold 10,000 shares of the stock in a transaction dated Monday, June 29th. The shares were sold at an average price of $128.30, for a total transaction of $1,283,000.00. Following the completion of the sale, the general counsel owned 12,223 shares in the company, valued at approximately $1,568,210.90. This represents a 45.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 54.70% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of NTES. V Square Quantitative Management LLC purchased a new stake in shares of NetEase during the first quarter worth approximately $25,000. Atlas Capital Advisors Inc. purchased a new position in NetEase during the 4th quarter worth $47,000. Smartleaf Asset Management LLC lifted its stake in shares of NetEase by 3,381.8% in the 2nd quarter. Smartleaf Asset Management LLC now owns 383 shares of the technology company’s stock worth $51,000 after acquiring an additional 372 shares during the period. Harbour Investments Inc. lifted its stake in shares of NetEase by 7,480.0% in the 4th quarter. Harbour Investments Inc. now owns 379 shares of the technology company’s stock worth $52,000 after acquiring an additional 374 shares during the period. Finally, MidFirst Bank purchased a new stake in shares of NetEase in the fourth quarter valued at about $57,000. 11.07% of the stock is currently owned by hedge funds and other 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.