NetEase Inc. [NASDAQ: NTES] closed the trading session at $94.79 on 12/18/20. The day’s price range saw the stock hit a low of $91.90, while the highest price level was $95.46. The company report on December 17, 2020 that NetEase Cloud Music Announces New Initiative to Foster the Growth of Derivative Music Content Creators.
NetEase Cloud Music, a leading interactive music streaming service provider in China, announced a new “Music Talent” initiative to leverage its competitive edge as a community to connect, inspire and engage quality content creators to cater to the country’s booming music industry.
Music Talent is a new concept incubated and developed by NetEase Cloud Music. With this new initiative, NetEase Cloud Music aims to support and grow the Music Talents on the platform who create derivative music content, such as music videos, radio podcasts, playlists and other forms of mediums to broadcast and distribute music. The initiative aims to help more everyday artists to earn an annual income of over RMB1 million or more, and facilitate the development of music multi-channel network (MCN) companies.
The stocks have a year to date performance of 54.56 percent and weekly performance of 7.40 percent. The stock has been moved at 13.33 percent over the last six months. The stock has performed 10.87 percent around the most recent 30 days and changed -1.24 percent over the most recent 3-months.
If compared to the average trading volume of 2.51M shares, NTES reached to a volume of 6550552 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about NetEase Inc. [NTES]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for NTES shares is $106.13 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on NTES stock is a recommendation set at 1.80. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Daiwa Securities have made an estimate for NetEase Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on August 14, 2020. The new note on the price target was released on June 12, 2020, representing the official price target for NetEase Inc. stock. Previously, the target price had yet another raise to $450, while New Street analysts kept a Buy rating on NTES stock.
The Average True Range (ATR) for NetEase Inc. is set at 3.15, with the Price to Sales ratio for NTES stock in the period of the last 12 months amounting to 6.68. The Price to Book ratio for the last quarter was 4.92, with the Price to Cash per share for the same quarter was set at 22.74. Price to Free Cash Flow for NTES in the course of the last twelve months was 37.68 with Quick ratio for the last quarter at 2.40.
NTES stock trade performance evaluation
NetEase Inc. [NTES] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 7.40. With this latest performance, NTES shares gained by 10.87% in over the last four-week period, additionally plugging by 13.33% over the last 6 months – not to mention a rise of 54.29% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for NTES stock in for the last two-week period is set at 60.05, with the RSI for the last a single of trading hit 65.54, and the three-weeks RSI is set at 56.96 for NetEase Inc. [NTES]. The present Moving Average for the last 50 days of trading for this stock 89.18, while it was recorded at 89.31 for the last single week of trading, and 83.97 for the last 200 days.
NetEase Inc. [NTES]: An insightful look at the core fundamentals
Operating Margin for any stock indicates how profitable investing would be, and NetEase Inc. [NTES] shares currently have an operating margin of +23.28 and a Gross Margin at +53.27. NetEase Inc.’s Net Margin is presently recorded at +22.41.
Return on Total Capital for NTES is now 17.85, given the latest momentum, and Return on Invested Capital for the company is 24.96. Return on Equity for this stock inclined to 25.02, with Return on Assets sitting at 13.40. When it comes to the capital structure of this company, NetEase Inc. [NTES] has a Total Debt to Total Equity ratio set at 28.15. Additionally, NTES Total Debt to Total Capital is recorded at 21.97, with Total Debt to Total Assets ending up at 15.43. Long-Term Debt to Equity for the company is recorded at 0.46, with the Long-Term Debt to Total Capital now at 0.36.
Reflecting on the efficiency of the workforce at the company, NetEase Inc. [NTES] managed to generate an average of $723,794 per employee. Receivables Turnover for the company is 12.31 with a Total Asset Turnover recorded at a value of 0.60.NetEase Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.40 and a Current Ratio set at 2.40.
Earnings per share (EPS) analysis for NetEase Inc. [NTES] stock
With the latest financial reports released by the company, NetEase Inc. posted 0.86/share EPS, while the average EPS was predicted by analysts to be reported at 0.76/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 13.20%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for NTES. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for NetEase Inc. go to 1.24%.
NetEase Inc. [NTES]: Insider Ownership positions
There are presently around $26,333 million, or 43.00% of NTES stock, in the hands of institutional investors. The top three institutional holders of NTES stocks are: BLACKROCK INC. with ownership of 22,591,945, which is approximately 3.118% of the company’s market cap and around 45.00% of the total institutional ownership; ORBIS ALLAN GRAY LTD, holding 20,711,095 shares of the stock with an approximate value of $1.96 billion in NTES stocks shares; and UBS ASSET MANAGEMENT AMERICAS INC, currently with $1.4 billion in NTES stock with ownership of nearly -14.978% of the company’s market capitalization.
Positions in NetEase Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 203 institutional holders increased their position in NetEase Inc. [NASDAQ:NTES] by around 32,415,115 shares. Additionally, 233 investors decreased positions by around 51,557,135 shares, while 66 investors held positions by with 193,833,930 shares. The mentioned changes placed institutional holdings at 277,806,180 shares, according to the latest SEC report filing. NTES stock had 65 new institutional investments in for a total of 2,055,780 shares, while 44 institutional investors sold positions of 1,039,460 shares during the same period.