Nordea Investment Management AB, a Swedish institutional investor, recently reduced its holdings in NetEase, Inc. (NASDAQ:NTES) by 25.6% during the second quarter of this year. This information was reported in Nordea’s most recent 13F filing with the Securities and Exchange Commission (SEC). At the end of the filing period, Nordea owned 288,996 shares of NetEase stock, which had a market value of $28,180,000.
NetEase, a leading technology company listed on the NASDAQ stock exchange under the ticker symbol NTES, announced its quarterly earnings data on August 24th. The company exceeded expectations by reporting earnings per share (EPS) of $13.88 for the quarter. This figure surpassed the consensus estimate of $9.14 by a substantial margin of $4.74.
During this particular quarter, NetEase recorded revenue amounting to $24.01 billion compared to an estimated consensus figure of $24.85 billion. Despite falling slightly short in terms of revenue expectations, this still represents a healthy year-over-year increase of 3.7%. Furthermore, NetEase demonstrated impressive financial performance with a net margin of 25.84% and a return on equity (ROE) of 22.78%.
Analysts predict that NetEase will continue to showcase solid performance throughout this fiscal year and will likely achieve earnings per share figures amounting to approximately $5.81.
Investors keen on obtaining further details about NetEase can refer to our latest comprehensive report on the company’s current standing in the market.
Disclaimer: The views expressed in this article are purely informative and should not be construed as financial advice or recommendations for investment decisions.
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NetEase (NASDAQ: NTES) Gains Attention from Large Investors and Receives Positive Analyst Ratings, Indicating Strong Growth Potential
NetEase, Inc. (NASDAQ: NTES), a leading technology company, has seen a recent surge in interest from large investors. Belpointe Asset Management LLC, Pinpoint Asset Management Ltd, CVA Family Office LLC, Penserra Capital Management LLC, and Ancora Advisors LLC are among the investors who have made significant investments in NetEase.
During the fourth quarter of last year, Belpointe Asset Management acquired a new stake in NetEase worth approximately $39,000. Similarly, Pinpoint Asset Management purchased shares of NetEase during the first quarter of this year valued at around $42,000. In addition, CVA Family Office bought a new position in NetEase worth $51,000 during the same period.
Penserra Capital Management also increased its holdings in NetEase by 91.1% during the fourth quarter of last year. The management now owns 837 shares of the company’s stock valued at $60,000 after buying an additional 399 shares. Moreover, Ancora Advisors raised its position in NetEase by 84.6% during the first quarter and currently owns 1,200 shares worth $124,000.
It is noteworthy that institutional investors and hedge funds currently own 11.78% of NetEase’s stock.
Looking at the market performance of NetEase on September 18th, 2023 reveals that the stock opened at $101.50 on Monday. It has a fifty-day moving average price of $103.55 and a two-hundred-day moving average price of $94.63. With a market capitalization of $66.46 billion and a PE ratio of 18.22, NetEase has shown stability in its financials.
The growth potential for NetEase looks promising as indicated by its low beta value of 0.60 and current ratios for liquidity maintenance of 2.93 (current ratio) and 2.91 (quick ratio). Moreover, the debt-to-equity ratio is at an impressively low 0.03.
Furthermore, NetEase recently announced a quarterly dividend to be paid on September 22nd, which serves as another attractive feature for investors. The company increased its dividend from $0.47 per share to $0.525 per share, representing a boost in its dividend payout ratio from 37.52%. With an annualized yield of 2.07%, this move demonstrates NetEase’s commitment to providing value to shareholders.
In terms of analysts’ opinions on NetEase, research reports have been largely positive. Bank of America raised their price target on the stock from $128.00 to $135.00 and labeled it as a “buy” in their report on August 25th. Morgan Stanley also increased their price target from $115.00 to $120.00 back in May.
Similarly, Jefferies Financial Group revised its price objective from $112.00 to $117.00 in July, while UBS Group boosted the target price from $112.00 to $113.00 during the same period.
JPMorgan Chase & Co., being another reputable financial institution, took a bullish stance on NetEase by raising their price target to $125.00 and giving the company an “overweight” rating.
Overall, based on evaluations done by various financial analysts and institutions with Bloomberg providing data as reference point, NetEase currently holds an average rating of “Buy” with an average price target of $122.13.
With consistent interest from large investors and positive analyst ratings, NetEase appears poised for further growth and success in the technology sector.
