NetEase (NASDAQ:NTES) Posts Quarterly Earnings Results, Misses Estimates By $0.51 EPS

NetEase (NASDAQ:NTES) posted its earnings results on Thursday. The technology company reported $1.80 earnings per share for the quarter, missing the consensus estimate of $2.31 by ($0.51), FiscalAI reports. NetEase had a net margin of 29.85% and a return on equity of 21.04%. The firm had revenue of $4.43 billion for the quarter, compared to analysts’ expectations of $4.33 billion.

NetEase Stock Performance

NASDAQ:NTES opened at $127.25 on Thursday. The company has a fifty day moving average of $126.85 and a two-hundred day moving average of $120.57. The stock has a market capitalization of $81.47 billion, a PE ratio of 16.90, a P/E/G ratio of 1.62 and a beta of 0.73. NetEase has a fifty-two week low of $106.06 and a fifty-two week high of $159.55.

Analysts Set New Price Targets

A number of research analysts have weighed in on NTES shares. Benchmark reaffirmed a “buy” rating on shares of NetEase in a report on Friday, May 22nd. Weiss Ratings lowered shares of NetEase from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, August 4th. Zacks Research cut NetEase from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 27th. Wall Street Zen lowered NetEase from a “buy” rating to a “hold” rating in a research note on Sunday, August 2nd. 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 equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, NetEase presently has a consensus rating of “Moderate Buy” and an average price target of $158.38.

Insider Activity

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

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of NTES. Sunbelt Securities Inc. purchased a new stake in NetEase during the 4th quarter worth approximately $271,000. Mcguire Capital Advisors Inc. purchased a new position in shares of NetEase in the fourth quarter valued at approximately $126,000. Compound Planning Inc. lifted its position in shares of NetEase by 16.0% in the fourth quarter. Compound Planning Inc. now owns 14,041 shares of the technology company’s stock valued at $1,932,000 after acquiring an additional 1,933 shares in the last quarter. Corient Private Wealth LLC boosted its stake in shares of NetEase by 85.2% in the fourth quarter. Corient Private Wealth LLC now owns 216,200 shares of the technology company’s stock worth $29,737,000 after acquiring an additional 99,487 shares during the last quarter. Finally, Mercer Global Advisors Inc. ADV boosted its stake in shares of NetEase by 9.0% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 2,177 shares of the technology company’s stock worth $300,000 after acquiring an additional 179 shares during the last quarter. 11.07% of the stock is 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.