Market Analysts see NetEase Inc. [NTES] gaining to $143. Time to buy?



NetEase Inc. [NASDAQ: NTES] loss -6.32% on the last trading session, reaching $86.54 price per share at the time. The company report on February 24, 2022 that NetEase Reports Fourth Quarter and Fiscal Year 2021 Unaudited Financial Results.

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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, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2021.

NetEase Inc. represents 665.18 million in outstanding shares, while the company has a total market value of $54.04 billion with the latest information. NTES stock price has been found in the range of $85.885 to $92.70.

If compared to the average trading volume of 2.84M shares, NTES reached a trading volume of 4557162 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 $134.17 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 1.50. 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 4.73, with the Price to Sales ratio for NTES stock in the period of the last 12 months amounting to 3.90. The Price to Book ratio for the last quarter was 4.35, with the Price to Cash per share for the same quarter was set at 23.11. Price to Free Cash Flow for NTES in the course of the last twelve months was 18.29 with Quick ratio for the last quarter at 2.20.

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 -6.75. With this latest performance, NTES shares dropped by -15.26% in over the last four-week period, additionally sinking by -10.69% over the last 6 months – not to mention a drop of -18.56% 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 35.79, with the RSI for the last a single of trading hit 31.04, and the three-weeks RSI is set at 38.99 for NetEase Inc. [NTES]. The present Moving Average for the last 50 days of trading for this stock 98.82, while it was recorded at 93.49 for the last single week of trading, and 100.39 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 +18.74 and a Gross Margin at +53.62. NetEase Inc.’s Net Margin is presently recorded at +19.24.

Return on Total Capital for NTES is now 14.03, given the latest momentum, and Return on Invested Capital for the company is 18.80. Return on Equity for this stock inclined to 18.99, with Return on Assets sitting at 11.41. When it comes to the capital structure of this company, NetEase Inc. [NTES] has a Total Debt to Total Equity ratio set at 21.64. Additionally, NTES Total Debt to Total Capital is recorded at 17.79, with Total Debt to Total Assets ending up at 13.43. Long-Term Debt to Equity for the company is recorded at 1.34, with the Long-Term Debt to Total Capital now at 1.10.

Receivables Turnover for the company is 14.38 with a Total Asset Turnover recorded at a value of 0.59.NetEase Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.20 and a Current Ratio set at 2.20.

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

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 16.89%.

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

There are presently around $13,789 million, or 24.90% of NTES stock, in the hands of institutional investors. The top three institutional holders of NTES stocks are: INVESCO LTD. with ownership of 19,873,487, which is approximately -10.597% of the company’s market cap and around 45.00% of the total institutional ownership; UBS ASSET MANAGEMENT AMERICAS INC, holding 9,981,433 shares of the stock with an approximate value of $922.09 million in NTES stocks shares; and ORBIS ALLAN GRAY LTD, currently with $669.59 million in NTES stock with ownership of nearly -55.568% of the company’s market capitalization.

Positions in NetEase Inc. stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 195 institutional holders increased their position in NetEase Inc. [NASDAQ:NTES] by around 20,573,501 shares. Additionally, 250 investors decreased positions by around 80,817,870 shares, while 47 investors held positions by with 47,868,476 shares. The mentioned changes placed institutional holdings at 149,259,847 shares, according to the latest SEC report filing. NTES stock had 83 new institutional investments in for a total of 4,333,494 shares, while 60 institutional investors sold positions of 10,845,165 shares during the same period.