NetEase (NTES) Downgraded by Morgan Stanley to Equal Weight

NetEase (NASDAQ:NTES) was downgraded by investment analysts at Morgan Stanley from an “overweight” rating to an “equal weight” rating in a report issued on Sunday. They currently have a $222.49 price target on the technology company’s stock. Morgan Stanley’s price objective would indicate a potential downside of 5.97% from the stock’s current price.

NTES has been the subject of several other research reports. Zacks Investment Research cut shares of NetEase from a “hold” rating to a “sell” rating in a research report on Wednesday, October 24th. Nomura upped their price objective on shares of NetEase from $265.00 to $267.00 and gave the stock a “buy” rating in a research report on Friday, November 16th. BidaskClub cut shares of NetEase from a “sell” rating to a “strong sell” rating in a research report on Friday, September 7th. Finally, Jefferies Financial Group raised shares of NetEase from a “hold” rating to a “buy” rating in a research report on Friday, September 21st. Two equities research analysts have rated the stock with a sell rating, three have issued a hold rating, nine have given a buy rating and two have given a strong buy rating to the stock. The stock presently has a consensus rating of “Buy” and a consensus price target of $291.23.

Shares of NetEase stock traded down $1.86 during trading on Friday, reaching $236.61. The company’s stock had a trading volume of 993,114 shares, compared to its average volume of 815,023. NetEase has a 52 week low of $184.60 and a 52 week high of $377.64. The stock has a market cap of $31.07 billion, a PE ratio of 19.07, a PEG ratio of 1.60 and a beta of 0.97.

NetEase (NASDAQ:NTES) last posted its quarterly earnings data on Wednesday, November 14th. The technology company reported $1.80 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $2.10 by ($0.30). NetEase had a return on equity of 12.66% and a net margin of 9.22%. The firm had revenue of $2.45 billion for the quarter, compared to the consensus estimate of $2.42 billion. During the same period in the prior year, the company earned $3.43 EPS. The company’s revenue for the quarter was up 30.9% compared to the same quarter last year. Equities analysts anticipate that NetEase will post 7.04 EPS for the current year.

A number of hedge funds and other institutional investors have recently modified their holdings of NTES. Principal Financial Group Inc. lifted its holdings in NetEase by 21.1% in the first quarter. Principal Financial Group Inc. now owns 3,193 shares of the technology company’s stock valued at $895,000 after acquiring an additional 557 shares during the last quarter. Crossmark Global Holdings Inc. lifted its stake in NetEase by 85.3% during the second quarter. Crossmark Global Holdings Inc. now owns 3,239 shares of the technology company’s stock worth $818,000 after purchasing an additional 1,491 shares in the last quarter. Maple Brown Abbott Ltd lifted its stake in NetEase by 79.0% during the second quarter. Maple Brown Abbott Ltd now owns 192,662 shares of the technology company’s stock worth $48,680,000 after purchasing an additional 85,008 shares in the last quarter. Pillar Pacific Capital Management LLC lifted its stake in NetEase by 2.6% during the second quarter. Pillar Pacific Capital Management LLC now owns 18,363 shares of the technology company’s stock worth $4,640,000 after purchasing an additional 473 shares in the last quarter. Finally, SG Americas Securities LLC lifted its stake in NetEase by 1,359.3% during the second quarter. SG Americas Securities LLC now owns 103,828 shares of the technology company’s stock worth $26,234,000 after purchasing an additional 96,713 shares in the last quarter. 45.40% of the stock is owned by hedge funds and other institutional investors.

About NetEase

NetEase, Inc operates an interactive online community in the People's Republic of China. The company operates through Online Game Services; E-Commerce; Advertising Services; and Email and Others segments. 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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