NetEase (NASDAQ:NTES) Shares Gap Down – Time to Sell?

Shares of NetEase, Inc. (NASDAQ:NTES) gapped down prior to trading on Wednesday . The stock had previously closed at $127.89, but opened at $122.00. NetEase shares last traded at $124.4230, with a volume of 144,862 shares trading hands.

Analysts Set New Price Targets

NTES has been the subject of a number of research reports. Weiss Ratings downgraded shares of NetEase from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, August 4th. The Goldman Sachs Group set a $169.00 price objective on NetEase in a research note on Wednesday, July 1st. Wall Street Zen cut NetEase from a “buy” rating to a “hold” rating in a report on Sunday, August 2nd. Benchmark restated a “buy” rating on shares of NetEase in a research note on Friday, May 22nd. Finally, Morgan Stanley reiterated an “overweight” rating and set a $158.00 price target on shares of NetEase in a research report on Tuesday, May 26th. Seven research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $158.38.

NetEase Stock Down 3.2%

The company has a market cap of $79.29 billion, a price-to-earnings ratio of 16.45, a price-to-earnings-growth ratio of 1.73 and a beta of 0.73. The company’s 50-day moving average is $126.48 and its 200 day moving average is $120.90.

NetEase Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, June 18th. Stockholders of record on Friday, June 5th were paid a dividend of $0.72 per share. This represents a $2.88 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend was Friday, June 5th. NetEase’s dividend payout ratio is presently 38.11%.

Insider Activity at NetEase

In other news, General Counsel Paul William Boltz, Jr. sold 10,000 shares of the firm’s stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $128.30, for a total transaction of $1,283,000.00. Following the sale, the general counsel directly owned 12,223 shares in the company, valued at $1,568,210.90. This trade represents a 45.00% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 54.70% of the stock is owned by company insiders.

Institutional Trading of NetEase

Institutional investors have recently bought and sold shares of the business. Mitsubishi UFJ Trust & Banking Corp raised its stake in shares of NetEase by 22.1% during the 4th quarter. Mitsubishi UFJ Trust & Banking Corp now owns 67,211 shares of the technology company’s stock worth $9,250,000 after buying an additional 12,173 shares during the period. Institute for Wealth Management LLC. acquired a new stake in NetEase in the 4th quarter valued at $3,491,000. Ninety One North America Inc. increased its holdings in NetEase by 3.4% in the 4th quarter. Ninety One North America Inc. now owns 500,241 shares of the technology company’s stock worth $68,843,000 after acquiring an additional 16,496 shares in the last quarter. Lazard Asset Management LLC raised its position in NetEase by 64.2% during the first quarter. Lazard Asset Management LLC now owns 581,720 shares of the technology company’s stock worth $65,118,000 after acquiring an additional 227,433 shares during the period. Finally, Assetmark Inc. raised its position in NetEase by 169.5% during the fourth quarter. Assetmark Inc. now owns 130,869 shares of the technology company’s stock worth $18,010,000 after acquiring an additional 82,312 shares during the period. 11.07% of the stock is owned by institutional investors and hedge funds.

NetEase Company Profile

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.