NetEase, Inc. (NASDAQ:NTES – Get Rating) gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $97.04, but opened at $101.08. NetEase shares last traded at $94.67, with a volume of 39,400 shares traded. The technology company reported $7.72 earnings per share for the quarter, topping the consensus estimate of $0.99 by $6.73. The company had revenue of $23.56 billion for the quarter, compared to analysts’ expectations of $23.12 billion. NetEase had a return on equity of 18.79% and a net margin of 19.25%. The business’s quarterly revenue was up 14.8% compared to the same quarter last year. During the same period in the previous year, the business posted $1.00 earnings per share.
The business also recently disclosed a quarterly dividend, which was paid on Friday, March 25th. Investors of record on Friday, March 11th were paid a $0.405 dividend. This is a positive change from NetEase’s previous quarterly dividend of $0.23. This represents a $1.62 dividend on an annualized basis and a dividend yield of 1.69%. The ex-dividend date of this dividend was Thursday, March 10th. NetEase’s payout ratio is currently 41.49%.
A number of equities analysts recently commented on the company. JPMorgan Chase & Co. raised NetEase from an “underweight” rating to an “overweight” rating and lifted their price objective for the stock from $60.00 to $120.00 in a research note on Monday, May 16th. Zacks Investment Research raised NetEase from a “sell” rating to a “hold” rating in a research note on Wednesday, April 20th. The Goldman Sachs Group initiated coverage on NetEase in a research note on Sunday, April 10th. They issued a “buy” rating and a $132.00 price target on the stock. Citigroup dropped their price target on NetEase from $136.00 to $133.00 in a research note on Monday, February 14th. Finally, 86 Research raised NetEase from a “hold” rating to a “buy” rating and set a $113.00 price target on the stock in a research note on Friday, February 25th. One equities research analyst has rated the stock with a hold rating and eight have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Buy” and a consensus price target of $127.00.
Several large investors have recently modified their holdings of NTES. Baillie Gifford & Co. grew its holdings in NetEase by 2.5% during the fourth quarter. Baillie Gifford & Co. now owns 258,292 shares of the technology company’s stock worth $26,289,000 after buying an additional 6,264 shares in the last quarter. Fisher Asset Management LLC grew its holdings in NetEase by 0.3% during the fourth quarter. Fisher Asset Management LLC now owns 1,752,672 shares of the technology company’s stock worth $178,387,000 after buying an additional 5,201 shares in the last quarter. WCM Investment Management LLC grew its holdings in NetEase by 50.0% during the fourth quarter. WCM Investment Management LLC now owns 55,973 shares of the technology company’s stock worth $5,697,000 after buying an additional 18,664 shares in the last quarter. Ameritas Advisory Services LLC bought a new stake in NetEase during the fourth quarter worth $759,000. Finally, Moors & Cabot Inc. bought a new stake in NetEase during the third quarter worth $18,036,000. 21.18% of the stock is currently owned by institutional investors.
The company has a fifty day moving average of $92.29 and a 200-day moving average of $97.25. The firm has a market cap of $64.17 billion, a P/E ratio of 25.01, a P/E/G ratio of 1.19 and a beta of 0.41. The company has a debt-to-equity ratio of 0.01, a current ratio of 2.24 and a quick ratio of 2.22.
About NetEase (NASDAQ:NTES)
NetEase, Inc provides online services focusing on gaming, communication, and commerce in the Peoples’ Republic of China and internationally. The company operates in three segments: Online Games Services, Youdao, and Innovative Businesses and Others. It develops and operates PC and mobile games, as well as offers games licensed from other game developers.