NetEase (NASDAQ:NTES) Downgraded by Zacks Research to Strong Sell

Zacks Research cut shares of NetEase (NASDAQ:NTES) from a hold rating to a strong sell rating in a research note issued to investors on Tuesday morning,Zacks reports.

Several other research firms also recently commented on NTES. Weiss Ratings downgraded shares of NetEase from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, August 4th. Morgan Stanley restated an “overweight” rating and issued a $163.00 price target on shares of NetEase in a research report on Monday, September 28th. Sanford C. Bernstein restated an “outperform” rating and issued a $160.00 price target on shares of NetEase in a research report on Friday, August 21st. The Goldman Sachs Group set a $169.00 price target on shares of NetEase in a research note on Wednesday, July 1st. Finally, Nomura lifted their price target on shares of NetEase from $155.00 to $157.00 and gave the stock a “buy” rating in a report on Tuesday, August 25th. Six research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $159.86.

NetEase Trading Down 1.7%

Shares of NTES stock opened at $122.98 on Tuesday. The firm has a market capitalization of $78.74 billion, a price-to-earnings ratio of 16.94, a PEG ratio of 1.47 and a beta of 0.68. The business’s 50-day moving average price is $121.11 and its 200-day moving average price is $121.59. NetEase has a 12 month low of $106.06 and a 12 month high of $149.20.

NetEase Cuts Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, September 18th. Stockholders of record on Thursday, September 3rd were paid a $0.48 dividend. The ex-dividend date of this dividend was Thursday, September 3rd. This is a negative change from NetEase’s previous quarterly dividend of $0.72. This represents a $1.92 annualized dividend and a dividend yield of 1.6%. NetEase’s payout ratio is currently 26.31%.

Insider Activity

In related news, VP Aileen Mo sold 716 shares of NetEase stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $120.64, for a total value of $86,378.24. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. 54.70% of the stock is owned by company insiders.

Institutional Trading of NetEase

Several institutional investors have recently added to or reduced their stakes in the stock. Bank of America Corp DE raised its holdings in NetEase by 111.4% during the 1st quarter. Bank of America Corp DE now owns 1,325,317 shares of the technology company’s stock worth $148,356,000 after purchasing an additional 698,318 shares during the last quarter. Renaissance Technologies LLC boosted its stake in shares of NetEase by 25.2% in the 1st quarter. Renaissance Technologies LLC now owns 1,363,188 shares of the technology company’s stock valued at $152,595,000 after purchasing an additional 274,500 shares during the last quarter. Temasek Holdings Private Ltd boosted its stake in shares of NetEase by 50.7% in the 1st quarter. Temasek Holdings Private Ltd now owns 708,114 shares of the technology company’s stock valued at $79,266,000 after purchasing an additional 238,386 shares during the last quarter. Carrhae Capital LLP increased its position in shares of NetEase by 343.2% during the second quarter. Carrhae Capital LLP now owns 306,577 shares of the technology company’s stock worth $39,285,000 after buying an additional 237,410 shares during the period. Finally, Lazard Asset Management LLC increased its position in shares of 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 buying an additional 227,433 shares during the period. 11.07% of the stock is currently owned by institutional investors.

About NetEase

NetEase, Inc is a China-based internet and technology company founded in 1997 by William Ding. The company develops and operates online games for personal computers and mobile devices, serving players in China and international markets.

NetEase Games is the company’s primary business and offers original titles such as Fantasy Westward Journey, Justice, and Identity V, along with games developed through partnerships and international studios. NetEase also publishes and distributes games in overseas markets through its global operations.

Beyond gaming, NetEase operates NetEase Cloud Music, an online music streaming and social platform, and Youdao, which provides educational technology, learning tools, and related content and services.