NetEase (NASDAQ:NTES) Shares Gap Up After Better-Than-Expected Earnings

NetEase, Inc. (NASDAQ:NTES) shares gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $112.35, but opened at $116.25. NetEase shares last traded at $116.12, with a volume of 295,511 shares trading hands.

The technology company reported $13.30 EPS for the quarter, beating analysts’ consensus estimates of $10.87 by $2.43. NetEase had a net margin of 25.84% and a return on equity of 22.78%. The company had revenue of $27.27 billion during the quarter, compared to the consensus estimate of $27.26 billion. During the same quarter in the prior year, the company posted $1.43 EPS. The company’s quarterly revenue was up 13.6% compared to the same quarter last year.

NetEase Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 15th. Stockholders of record on Friday, December 1st will be paid a dividend of $0.495 per share. This represents a $1.98 dividend on an annualized basis and a dividend yield of 1.69%. The ex-dividend date is Thursday, November 30th. NetEase’s dividend payout ratio is currently 37.52%.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on NTES shares. JPMorgan Chase & Co. upped their price objective on shares of NetEase from $120.00 to $125.00 and gave the company an “overweight” rating in a research note on Tuesday, August 29th. Bank of America increased their target price on shares of NetEase from $128.00 to $135.00 and gave the stock a “buy” rating in a research report on Friday, August 25th. Citigroup dropped their target price on shares of NetEase from $134.00 to $132.00 and set a “buy” rating for the company in a research report on Friday, August 25th. Benchmark increased their target price on shares of NetEase from $130.00 to $140.00 and gave the stock a “buy” rating in a research report on Friday. Finally, StockNews.com downgraded shares of NetEase from a “strong-buy” rating to a “buy” rating in a research report on Tuesday. Seven equities research analysts have rated the stock with a buy rating, According to MarketBeat, the company currently has an average rating of “Buy” and an average price target of $123.38.

Hedge Funds Weigh In On NetEase

A number of institutional investors and hedge funds have recently bought and sold shares of NTES. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp purchased a new position in shares of NetEase during the 1st quarter valued at approximately $1,135,000. Sei Investments Co. boosted its stake in shares of NetEase by 2.5% during the 1st quarter. Sei Investments Co. now owns 15,901 shares of the technology company’s stock valued at $1,432,000 after buying an additional 386 shares during the last quarter. Candriam Luxembourg S.C.A. purchased a new position in shares of NetEase during the 1st quarter valued at approximately $8,461,000. West Family Investments Inc. purchased a new position in shares of NetEase during the 1st quarter valued at approximately $266,000. Finally, XTX Topco Ltd purchased a new position in shares of NetEase during the 1st quarter valued at approximately $246,000. Hedge funds and other institutional investors own 11.78% of the company’s stock.

NetEase Stock Performance

The company has a market capitalization of $76.70 billion, a PE ratio of 21.03, a PEG ratio of 1.15 and a beta of 0.56. The company has a debt-to-equity ratio of 0.03, a quick ratio of 2.91 and a current ratio of 2.93. The company has a 50 day moving average price of $105.17 and a 200 day moving average price of $100.09.

About NetEase

NetEase, Inc engages in online games, music streaming, online intelligent learning services, and internet content services businesses in China and internationally . The company operates through Games and Related Value-Added Services, Youdao, Cloud Music, and Innovative Businesses and Others segments.