StockNews.com Downgrades NetEase (NASDAQ:NTES) to Buy

NetEase (NASDAQ:NTES) was downgraded by stock analysts at StockNews.com from a “strong-buy” rating to a “buy” rating in a research report issued on Saturday.

NTES has been the subject of several other reports. HSBC lowered their price target on shares of NetEase from $130.00 to $126.00 and set a “buy” rating for the company in a research note on Wednesday, April 24th. Barclays started coverage on NetEase in a research note on Thursday, June 13th. They issued an “equal weight” rating and a $104.00 target price for the company. Benchmark raised their price target on NetEase from $144.00 to $145.00 and gave the stock a “buy” rating in a research report on Friday, May 24th. Finally, Morgan Stanley reiterated an “equal weight” rating and issued a $100.00 price objective on shares of NetEase in a research report on Friday, July 5th. Two analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. According to MarketBeat.com, NetEase currently has a consensus rating of “Moderate Buy” and an average target price of $123.86.

NetEase Price Performance

NASDAQ:NTES opened at $91.35 on Friday. The company has a market capitalization of $58.66 billion, a price-to-earnings ratio of 14.16, a PEG ratio of 1.82 and a beta of 0.53. The business has a 50 day moving average of $93.86 and a 200 day moving average of $98.05. NetEase has a 1-year low of $81.30 and a 1-year high of $118.89.

NetEase (NASDAQ:NTES) last posted its quarterly earnings results on Thursday, May 23rd. The technology company reported $1.63 EPS for the quarter, missing the consensus estimate of $1.68 by ($0.05). NetEase had a return on equity of 24.19% and a net margin of 28.75%. The business had revenue of $3.72 billion for the quarter, compared to analysts’ expectations of $3.61 billion. As a group, sell-side analysts anticipate that NetEase will post 6.68 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Nordea Investment Management AB boosted its position in shares of NetEase by 17.2% during the first quarter. Nordea Investment Management AB now owns 318,550 shares of the technology company’s stock valued at $33,059,000 after purchasing an additional 46,635 shares in the last quarter. Boston Partners purchased a new stake in shares of NetEase in the 4th quarter worth about $964,000. Mirae Asset Global Investments Co. Ltd. grew its position in shares of NetEase by 6.3% in the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 278,802 shares of the technology company’s stock worth $28,848,000 after buying an additional 16,607 shares during the period. Assenagon Asset Management S.A. increased its stake in shares of NetEase by 451.3% in the 4th quarter. Assenagon Asset Management S.A. now owns 511,454 shares of the technology company’s stock worth $47,647,000 after acquiring an additional 418,677 shares in the last quarter. Finally, Nomura Asset Management Co. Ltd. lifted its position in NetEase by 879.6% during the 4th quarter. Nomura Asset Management Co. Ltd. now owns 28,311 shares of the technology company’s stock valued at $2,637,000 after acquiring an additional 25,421 shares during the period. 11.07% of the stock is owned by hedge funds and other institutional investors.

NetEase Company Profile

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.