NetEase (NASDAQ:NTES) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Friday.

According to Zacks, “NetEase, Inc. is an Internet technology company engaged in the development of applications, services and other technologies for the Internet in China. It provides online gaming services that include in-house developed massively multi-player online role-playing games and licensed titles. NetEase also provides online advertising, community services, entertainment content, free e-mail services and micro-blogging services. The Company also offers wireless value-added services such as news and information content, matchmaking services, music and photos from the web that are sent over SMS, MMS, WAP, IVR and Color Ring-back Tone technologies. NetEase, Inc., formerly known as NetEase.com, Inc., is based in Beijing, the People’s Republic of China. “

A number of other equities research analysts also recently weighed in on NTES. Benchmark restated a “buy” rating and set a $295.00 target price (down previously from $320.00) on shares of NetEase in a research report on Thursday. ValuEngine upgraded NetEase from a “hold” rating to a “buy” rating in a research report on Thursday, November 1st. BidaskClub upgraded NetEase from a “buy” rating to a “strong-buy” rating in a research report on Wednesday, November 7th. TheStreet upgraded NetEase from a “c+” rating to a “b” rating in a research report on Friday, August 10th. Finally, Nomura dropped their target price on NetEase from $352.00 to $265.00 in a research report on Monday, October 29th. Two research analysts have rated the stock with a sell rating, two have given a hold rating, eleven have given a buy rating and two have given a strong buy rating to the company’s stock. NetEase currently has an average rating of “Buy” and an average price target of $308.46.

Shares of NTES opened at $231.39 on Friday. The firm has a market capitalization of $27.92 billion, a price-to-earnings ratio of 18.65, a price-to-earnings-growth ratio of 1.38 and a beta of 0.96. NetEase has a 52-week low of $184.60 and a 52-week high of $377.64.

NetEase (NASDAQ:NTES) last released its earnings results on Wednesday, November 14th. The technology company reported $1.80 earnings per share for the quarter, missing analysts’ consensus estimates of $2.10 by ($0.30). The firm had revenue of $2.45 billion for the quarter, compared to the consensus estimate of $2.42 billion. NetEase had a return on equity of 14.57% and a net margin of 11.49%. The company’s revenue was up 30.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.43 EPS. On average, equities research analysts expect that NetEase will post 7.34 earnings per share for the current year.

Several institutional investors have recently made changes to their positions in NTES. Steadfast Capital Management LP acquired a new stake in shares of NetEase during the third quarter worth $276,011,000. Vontobel Asset Management Inc. acquired a new stake in shares of NetEase during the second quarter worth $256,375,000. Capital World Investors acquired a new stake in shares of NetEase during the third quarter worth $117,389,000. EastBay Asset Management LLC acquired a new stake in shares of NetEase during the second quarter worth $67,008,000. Finally, Elephas Investment Management Ltd acquired a new stake in shares of NetEase during the second quarter worth $49,220,000. 45.30% of the stock is owned by institutional investors and hedge funds.

NetEase Company Profile

NetEase, Inc operates an interactive online community in the People's Republic of China. The company operates through Online Game Services; E-Commerce; Advertising Services; and Email and Others segments. 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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