Daiwa Securities lifts NetEase Inc. [NTES] price estimate. Who else is bullish?

NetEase Inc. [NASDAQ: NTES] gained 0.57% or 0.6 points to close at $106.53 with a heavy trading volume of 1880230 shares. The company report on May 21, 2021 that NetEase Unveils Game Pipeline at Seventh Annual Product Launch Event.

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NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, “NetEase” or the “Company”), one of China’s leading internet and online game services providers, celebrated its diversified portfolio of PC and mobile games and announced new games and content updates for over 60 products at its Seventh Annual Product Launch event on Thursday, May 20, 2021.

NetEase remains fully committed to providing the utmost entertainment experience for its users and actively enhancing its brand recognition with the goal of becoming a world-leading game developer and publisher.

It opened the trading session at $106.26, the shares rose to $108.91 and dropped to $106.26, the range by which the price of stock traded the whole day. The daily chart for NTES points out that the company has recorded 14.63% gains over the past six months. However, it is still -28.46% lower than its most recent low trading price.

If we look at the average trading volume of 1.93M shares, NTES reached to a volume of 1880230 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying 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 $134.19 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 1.70. 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 3.29, with the Price to Sales ratio for NTES stock in the period of the last 12 months amounting to 6.17. The Price to Book ratio for the last quarter was 5.37, with the Price to Cash per share for the same quarter was set at 22.29. Price to Free Cash Flow for NTES in the course of the last twelve months was 24.91 with Quick ratio for the last quarter at 2.30.

Trading performance analysis for NTES stock

NetEase Inc. [NTES] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.17. With this latest performance, NTES shares dropped by -6.14% in over the last four-week period, additionally plugging by 14.63% over the last 6 months – not to mention a rise of 22.43% 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 40.87, with the RSI for the last a single of trading hit 36.29, and the three-weeks RSI is set at 43.92 for NetEase Inc. [NTES]. The present Moving Average for the last 50 days of trading for this stock 110.78, while it was recorded at 107.73 for the last single week of trading, and 103.08 for the last 200 days.

NetEase Inc. [NTES]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and NetEase Inc. [NTES] shares currently have an operating margin of +19.74 and a Gross Margin at +52.92. NetEase Inc.’s Net Margin is presently recorded at +16.37.

Return on Total Capital for NTES is now 13.82, given the latest momentum, and Return on Invested Capital for the company is 16.23. Return on Equity for this stock inclined to 16.32, with Return on Assets sitting at 9.23. When it comes to the capital structure of this company, NetEase Inc. [NTES] has a Total Debt to Total Equity ratio set at 24.73. Additionally, NTES Total Debt to Total Capital is recorded at 19.83, with Total Debt to Total Assets ending up at 14.32. Long-Term Debt to Equity for the company is recorded at 0.58, with the Long-Term Debt to Total Capital now at 0.46.

Reflecting on the efficiency of the workforce at the company, NetEase Inc. [NTES] managed to generate an average of $480,004 per employee. Receivables Turnover for the company is 12.44 with a Total Asset Turnover recorded at a value of 0.56.NetEase Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.30 and a Current Ratio set at 2.30.

NetEase Inc. [NTES]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, NetEase Inc. posted 1.22/share EPS, while the average EPS was predicted by analysts to be reported at 0.98/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 24.50%. 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 1.87%.

An analysis of insider ownership at NetEase Inc. [NTES]

There are presently around $25,443 million, or 38.40% of NTES stock, in the hands of institutional investors. The top three institutional holders of NTES stocks are: BLACKROCK INC. with ownership of 23,430,942, which is approximately 4.227% of the company’s market cap and around 45.00% of the total institutional ownership; ORBIS ALLAN GRAY LTD, holding 18,299,076 shares of the stock with an approximate value of $1.95 billion in NTES stocks shares; and INVESCO LTD., currently with $1.59 billion in NTES stock with ownership of nearly 37.57% of the company’s market capitalization.

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220 institutional holders increased their position in NetEase Inc. [NASDAQ:NTES] by around 25,501,456 shares. Additionally, 245 investors decreased positions by around 23,225,336 shares, while 58 investors held positions by with 190,104,697 shares. The mentioned changes placed institutional holdings at 238,831,489 shares, according to the latest SEC report filing. NTES stock had 67 new institutional investments in for a total of 7,385,147 shares, while 55 institutional investors sold positions of 2,814,010 shares during the same period.

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