Wall Street Analyst Reiterated NetEase Inc. [NTES]. What else is Wall St. saying

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NetEase Inc. [NASDAQ: NTES] plunged by -$4.34 during the normal trading session on Thursday and reaching a high of $113.74 during the day while it closed the day at $107.47. The company report on November 22, 2021 that CLOUD VILLAGE INC. Launches Hong Kong Initial Public Offering.

Cloud Village Inc. (the “Company”), a leading interactive music streaming service provider in China, announced the launch of its Hong Kong Public Offering, which forms part of the Global Offering (the “Offering”) of 16,000,000 new ordinary shares (the “Offer Shares” or “Shares”) and listing of its ordinary shares on the Main Board of The Stock Exchange of Hong Kong Limited (the “SEHK”) under the stock code “9899.HK.”.


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The Offering initially comprises 1,600,000 offer Shares under the Hong Kong Public Offering and 14,400,000 offer Shares for the International Offering, representing approximately 10.0% and 90.0% of the total number of Shares in the Offering, respectively, subject to re-allocation and over-allotment. Subject to the level of any oversubscription in the Hong Kong Public Offering and pursuant to the clawback mechanism as described in the prospectus issued in Hong Kong, the total number of shares available under the Hong Kong Public Offering could be adjusted to up to a maximum of 8,000,000 offer Shares, representing approximately 50.0% of the Offer Shares initially available under the Offering. In addition, the Company expects to grant the international underwriters an over-allotment option to purchase up to an additional 2,400,000 new Shares in the International Offering, representing not more than 15.0% of the Offer Shares initially available under the Offering.

NetEase Inc. stock has also loss -5.44% of its value over the past 7 days. However, NTES stock has inclined by 13.23% in the 3 months of the year. Over the past six months meanwhile, it has lost -6.09% and gained 12.22% year-on date.

The market cap for NTES stock reached $70.17 billion, with 665.18 million shares outstanding and 664.28 million shares in the current float. Compared to the average trading volume of 3.58M shares, NTES reached a trading volume of 4408702 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 $133.46 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.

CLSA have made an estimate for NetEase Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on November 17, 2021. While these analysts kept the previous recommendation, Citigroup dropped their target price from $142 to $136. The new note on the price target was released on November 17, 2021, representing the official price target for NetEase Inc. stock. Previously, the target price had yet another raise from $128 to $145, while BofA Securities kept a Buy rating on NTES stock.

The Average True Range (ATR) for NetEase Inc. is set at 4.59, with the Price to Sales ratio for NTES stock in the period of the last 12 months amounting to 5.40. The Price to Book ratio for the last quarter was 5.45, with the Price to Cash per share for the same quarter was set at 21.91. Price to Free Cash Flow for NTES in the course of the last twelve months was 22.54 with Quick ratio for the last quarter at 2.20.

NTES stock trade performance evaluation

NetEase Inc. [NTES] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -5.44. With this latest performance, NTES shares gained by 7.16% in over the last four-week period, additionally sinking by -6.09% over the last 6 months – not to mention a rise of 21.94% 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 50.66, with the RSI for the last a single of trading hit 45.34, and the three-weeks RSI is set at 53.35 for NetEase Inc. [NTES]. The present Moving Average for the last 50 days of trading for this stock 99.99, while it was recorded at 110.29 for the last single week of trading, and 103.15 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 +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 2.20 and a Current Ratio set at 2.20.

Earnings per share (EPS) analysis for NetEase Inc. [NTES] stock

With the latest financial reports released by the company, NetEase Inc. posted 0.82/share EPS, while the average EPS was predicted by analysts to be reported at 0.39/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 110.30%. 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 3.21%.

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NetEase Inc. [NTES]: Insider Ownership positions

There are presently around $23,318 million, or 35.10% of NTES stock, in the hands of institutional investors. The top three institutional holders of NTES stocks are: INVESCO LTD. with ownership of 22,229,170, which is approximately 28.456% of the company’s market cap and around 45.00% of the total institutional ownership; BLACKROCK INC., holding 19,782,849 shares of the stock with an approximate value of $2.13 billion in NTES stocks shares; and ORBIS ALLAN GRAY LTD, currently with $1.75 billion in NTES stock with ownership of nearly -11.687% 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 178 institutional holders increased their position in NetEase Inc. [NASDAQ:NTES] by around 36,220,944 shares. Additionally, 279 investors decreased positions by around 53,385,322 shares, while 65 investors held positions by with 127,368,615 shares. The mentioned changes placed institutional holdings at 216,974,881 shares, according to the latest SEC report filing. NTES stock had 43 new institutional investments in for a total of 10,617,751 shares, while 107 institutional investors sold positions of 9,004,706 shares during the same period.