NetEase (NASDAQ:NTES) Cut to Hold at Zacks Investment Research

Zacks Investment Research lowered shares of NetEase (NASDAQ:NTES) from a buy rating to a hold rating in a report issued on Friday, Zacks.com reports.

According to Zacks, “NetEase, Inc. is an Internet technology company engaged in the development of applications, services and other technologies for the Internet in China. It provides online gaming services that include in-house developed massively multi-player online role-playing games and licensed titles. NetEase also provides online advertising, community services, entertainment content, free e-mail services and micro-blogging services. The Company also offers wireless value-added services such as news and information content, matchmaking services, music and photos from the web that are sent over SMS, MMS, WAP, IVR and Color Ring-back Tone technologies. NetEase, Inc., formerly known as NetEase.com, Inc., is based in Beijing, the People’s Republic of China. “

Several other equities analysts also recently weighed in on NTES. TH Capital raised their target price on NetEase from $270.00 to $310.00 and gave the company a buy rating in a research report on Monday, May 13th. ValuEngine upgraded XPO Logistics from a strong sell rating to a sell rating in a research report on Thursday, April 4th. China Renaissance Securities upgraded NetEase from a hold rating to a buy rating in a research report on Thursday, May 16th. Barclays raised their target price on NetEase from $300.00 to $320.00 and gave the company an overweight rating in a research report on Monday, May 20th. Finally, Benchmark restated a buy rating and issued a $305.00 target price (up previously from $295.00) on shares of NetEase in a research report on Thursday, May 16th. Four analysts have rated the stock with a hold rating and ten have assigned a buy rating to the stock. NetEase presently has an average rating of Buy and a consensus price target of $278.75.

Shares of NTES stock opened at $242.96 on Friday. The stock has a market capitalization of $32.08 billion, a P/E ratio of 35.37, a P/E/G ratio of 1.87 and a beta of 0.86. The business’s 50 day simple moving average is $258.65. NetEase has a 12-month low of $184.60 and a 12-month high of $289.68.

NetEase (NASDAQ:NTES) last issued its quarterly earnings results on Wednesday, May 15th. The technology company reported $2.75 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.86 by $0.89. The company had revenue of $2.74 billion for the quarter, compared to the consensus estimate of $2.73 billion. NetEase had a return on equity of 17.05% and a net margin of 10.94%. NetEase’s revenue for the quarter was up 23.0% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.59 earnings per share. On average, research analysts forecast that NetEase will post 8.77 EPS for the current fiscal year.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Close Asset Management Ltd increased its holdings in shares of NetEase by 233.3% in the first quarter. Close Asset Management Ltd now owns 500 shares of the technology company’s stock valued at $121,000 after purchasing an additional 350 shares during the last quarter. Marshall Wace LLP increased its holdings in shares of NetEase by 151.2% in the first quarter. Marshall Wace LLP now owns 638 shares of the technology company’s stock valued at $154,000 after purchasing an additional 384 shares during the last quarter. QS Investors LLC increased its holdings in shares of NetEase by 7.1% in the fourth quarter. QS Investors LLC now owns 750 shares of the technology company’s stock valued at $177,000 after purchasing an additional 50 shares during the last quarter. Checchi Capital Advisers LLC acquired a new stake in shares of NetEase in the first quarter valued at approximately $200,000. Finally, Halsey Associates Inc. CT acquired a new stake in shares of NetEase in the fourth quarter valued at approximately $213,000. Institutional investors and hedge funds own 45.93% of the company’s stock.

About NetEase

NetEase, Inc operates an interactive online community in the People's Republic of China. The company operates in four segments: Online Games Services, E-Commerce, Advertising Services, and Innovative Businesses and Other Services. It offers various games in a range of genres through mobile devices and PCs, including role-playing games, MMORPGs, battle arena games, simulation games, collectible card games, first-person shooter games, sandbox games, and other types of games to the Chinese market.

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