NetEase Inc. (NASDAQ: NTES) Is Getting Increasingly Hard To Ignore


    UBS Asset Management Switzerland. recently announced the acquisition of new stake in NetEase Inc. (NASDAQ:NTES). The institutional investor has increased its shareholding in the Communication Services company by 32.85% to 2.1 million shares with purchase of 0.52 million shares. This fresh investment now brings its stake to 1.52% valued currently at $903.7 million. In addition, Ninety One UK Ltd. raised its holdings by 0.21 million to 1.9 million shares. And SSgA Funds Management, Inc. has lifted its position by 5.99% or 94542.0 shares – to 1.67 million shares.

    With over 0.46 million NetEase Inc. (NTES) shares trading Monday and a closing price of $470.89 on the day, the dollar volume was approximately $215.6 million. The shares have shown a negative weekly performance of -1.28% and its price on 07/20/20 gained nearly 2.98%. Currently, there are 129.26M common shares owned by the public and among those 74.52M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 36 analysts who have offered their price forecasts for NTES have a consensus price objective of $3255.38. The analysts have set the share’s price value over the next 12 months at a high of $4203.36 and a low of $1926.42 should the stock experience a downside. Incidentally, analysts’ outlook for the NetEase Inc. stock is 1.90 for the next 12 months. But an upside of 88.8% will see the stock hit the forecast high price target while mean target price for the stock is $3233.55.

    The top 3 mutual fund holders in NetEase Inc. are Vanguard Total International Stoc, UBS (Lux) Equity Fund – China Opp, and Vanguard Emerging Markets Stock I. Vanguard Total International Stoc owns 1.28 million shares of the company’s stock, all valued at over $549.99 million. The company bought an additional 32644.0 shares recently to bring their total holdings to about 0.93% of the shares outstanding. UBS (Lux) Equity Fund – China Opp bought 0.15 million shares to see its total holdings expand to 1.21 million shares valued at over $521.56 million and representing 0.88% of the shares outstanding. Vanguard Emerging Markets Stock I bought 15711.0 shares to bring its total holdings to over 1.01 million shares at a value of $433.83 million. Vanguard Emerging Markets Stock I now owns shares totaling to 0.73% of the shares outstanding.

    Shares of NetEase Inc. (NASDAQ: NTES) opened at $459.99, up $2.72 from a prior closing price of $457.27. However, the script later closed the day at $470.89, up 2.98%. The company’s stock has a 5-day price change of -1.28% and 34.99% over the past three months. NTES shares are trading 53.56% year to date (YTD), with the 12-month market performance up to 97.49% higher. It has a 12-month low price of $204.43 and touched a high of $503.27 over the same period. Currently, 0.46 million shares have been traded, compared to an average intraday trading volume of 921.27K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 5.37%, 13.79%, and 38.74% respectively.

    Institutional ownership of NetEase Inc. (NASDAQ: NTES) shares accounts for 49.30% of the company’s 129.26M shares outstanding. Mutual fund holders own 23.69%, while other institutional holders and individual stakeholders account for 23.72% and — respectively.

    It has a market capitalization of $65.41B and a beta (3y monthly) value of 0.75. The stock’s trailing 12-month PE ratio is 29.21, while the earnings-per-share (ttm) stands at $16.12. The company has a PEG of 8.25 and a Quick Ratio of 2.10 with the debt-to-equity ratio at 0.31. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.78% over the week and 2.81% over the month.

    Analysts forecast that NetEase Inc. (NTES) will achieve an EPS of $4.46 for the current quarter, $4.45 for the next quarter and $20.74 for 2021. The lowest estimate earnings-per-share for the quarter is $3.79 while analysts give the company a high EPS estimate of $4.91. Comparatively, EPS for the current quarter was $3.96 a year ago. Earnings per share for the fiscal year are expected to increase by 60.30%, and 14.09% over the next financial year. EPS should shrink at an annualized rate of 3.54% over the next five years, compared to 23.00% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 36 brokerage firm advisors rate NetEase Inc. (NTES) as a “Strong Buy” at a consensus score of 1.90. Specifically, 28 Wall Street analysts polled rate the stock as a buy, while 6 of the 36 advise that investors “hold,” and 1 rated it as a “Sell.”

    Looking at the support for the NTES, a number of firms have released research notes about the stock. Goldman stated their Buy rating for the stock in a research note on June 12, 2020, with the firm’s price target at. New Street coverage for the NetEase Inc. (NTES) stock in a research note released on May 21, 2020 offered a Buy rating with a price target of $450. Standpoint Research was of a view on May 18, 2020 that the stock is Hold, while Macquarie gave the stock Neutral rating on February 27, 2020, issuing a price target of. Goldman on their part issued Buy rating on December 04, 2019.


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