NetEase (NASDAQ:NTES) Downgraded by 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 Saturday, 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. “

NTES has been the topic of several other reports. TH Capital upped their price target on NetEase from $270.00 to $310.00 and gave the stock a buy rating in a research note on Monday, May 13th. China Renaissance Securities raised NetEase from a hold rating to a buy rating in a research note on Thursday, May 16th. BidaskClub cut NetEase from a hold rating to a sell rating in a research note on Wednesday, July 24th. Benchmark reissued a buy rating and issued a $305.00 target price (up from $295.00) on shares of NetEase in a research note on Thursday, May 16th. Finally, Barclays increased their target price on NetEase from $300.00 to $320.00 and gave the stock an overweight rating in a research note on Monday, May 20th. One analyst has rated the stock with a sell rating, three have issued a hold rating and ten have given a buy rating to the company. NetEase presently has an average rating of Buy and an average price target of $276.55.

NTES stock traded down $5.24 during midday trading on Friday, hitting $219.70. The stock had a trading volume of 916,448 shares, compared to its average volume of 471,811. The stock has a market cap of $29.54 billion, a price-to-earnings ratio of 31.98, a price-to-earnings-growth ratio of 1.77 and a beta of 0.87. The stock’s 50-day moving average price is $253.81. NetEase has a 52-week low of $184.60 and a 52-week 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 for the quarter, topping the Thomson Reuters’ consensus estimate of $1.86 by $0.89. The company had revenue of $2.74 billion for the quarter, compared to analysts’ expectations of $2.73 billion. NetEase had a return on equity of 17.05% and a net margin of 10.94%. The firm’s revenue for the quarter was up 23.0% on a year-over-year basis. During the same period in the prior year, the firm earned $1.59 earnings per share. On average, sell-side analysts predict that NetEase will post 8.55 earnings per share for the current fiscal year.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Huntington National Bank grew its stake in shares of NetEase by 101.0% in the second quarter. Huntington National Bank now owns 209 shares of the technology company’s stock worth $53,000 after acquiring an additional 105 shares during the last quarter. Close Asset Management Ltd grew its stake 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 worth $121,000 after acquiring an additional 350 shares during the last quarter. Marshall Wace LLP grew its stake in shares of NetEase by 151.2% in the first quarter. Marshall Wace LLP now owns 638 shares of the technology company’s stock worth $154,000 after acquiring an additional 384 shares during the last quarter. Atlas Capital Advisors LLC purchased a new stake in shares of NetEase in the second quarter worth $160,000. Finally, Checchi Capital Advisers LLC purchased a new stake in shares of NetEase in the first quarter worth $200,000. 45.87% of the stock is currently owned by hedge funds and other institutional investors.

NetEase Company Profile

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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