For NetEase Inc. [NTES], Analyst sees a rise to $143. What next?


NetEase Inc. [NASDAQ: NTES] stock went on an upward path that rose over 8.92% on Thursday, amounting to a one-week price increase of more than 6.28%. The company report on December 8, 2021 that NetEase Upgraded to ‘A’ by MSCI ESG Rating, Scores Improve on DJSI and Sustainalytics.

NetEase, Inc. (“NetEase” or “the Company,” NASDAQ: NTES; HKEX: 9999), one of China’s leading internet and online game services providers, is pleased to announce that Morgan Stanley Capital International (“MSCI”) has upgraded its MSCI ESG Rating to “A,” surpassing 75% of the companies in the global media and entertainment industry. According to MSCI’s latest ESG ratings, NetEase received outstanding scores for its ESG initiatives in the areas of “privacy and data security” and “human capital development” among global peers. The reconfigured ratings also noted NetEase’s improvement in “carbon emissions” and “governance” areas, further recognizing NetEase’s commitment and efforts to incorporate environmental and social responsibilities into the Company’s strategies and operations.

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MSCI is a leading provider of critical decision support tools and services for the global investment community with over 50 years of expertise in research, data and technology. An MSCI ESG Rating is designed to measure a company’s resilience to long-term, industry material environmental, social and governance (ESG) risks. The upgrade of NetEase’s ESG rating from “BBB” to “A” acknowledges NetEase’s commitment to and implementation of its ESG goals.

Over the last 12 months, NTES stock rose by 8.15%. The one-year NetEase Inc. stock forecast points to a potential upside of 23.68. The average equity rating for NTES stock is currently 1.70, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $69.46 billion, with 665.18 million shares outstanding and 662.02 million shares in the current float. Compared to the average trading volume of 3.47M shares, NTES stock reached a trading volume of 3357884 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on 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 $135.94 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 4.79, with the Price to Sales ratio for NTES stock in the period of the last 12 months amounting to 5.33. The Price to Book ratio for the last quarter was 5.25, with the Price to Cash per share for the same quarter was set at 21.42. Price to Free Cash Flow for NTES in the course of the last twelve months was 22.25 with Quick ratio for the last quarter at 2.20.

NTES Stock Performance Analysis:

NetEase Inc. [NTES] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 6.28. With this latest performance, NTES shares dropped by -3.69% in over the last four-week period, additionally sinking by -8.76% over the last 6 months – not to mention a rise of 8.15% 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 54.04, with the RSI for the last a single of trading hit 58.89, and the three-weeks RSI is set at 52.55 for NetEase Inc. [NTES]. The present Moving Average for the last 50 days of trading for this stock 103.87, while it was recorded at 98.29 for the last single week of trading, and 102.15 for the last 200 days.

Insight into NetEase Inc. 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.


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 Position Details

There are presently around $20,667 million, or 35.00% 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 $1.88 billion in NTES stocks shares; and ORBIS ALLAN GRAY LTD, currently with $1.55 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 175 institutional holders increased their position in NetEase Inc. [NASDAQ:NTES] by around 36,220,956 shares. Additionally, 281 investors decreased positions by around 53,388,175 shares, while 65 investors held positions by with 127,364,171 shares. The mentioned changes placed institutional holdings at 216,973,302 shares, according to the latest SEC report filing. NTES stock had 42 new institutional investments in for a total of 10,611,005 shares, while 108 institutional investors sold positions of 9,007,359 shares during the same period.