NetEase Inc. (NASDAQ: NTES) stock fell -5.03% on Friday to $79.76 against a previous-day closing price of $83.98. With 1.59 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.67 million shares. During the session, the Internet Content & Information company that operates in wider Communication Services sector, reached to the highest price of $81.83 whereas the lowest price it dropped to was $79.19. The 52-week range on NTES shows that it touched its highest point at $118.19 and its lowest point at $68.62 during that stretch. It currently has a 1-year price target of $122.36. With its current market cap of 53.33 billion, NTES has annualized dividend of $1.55 while the current yield stands at 1.95%. Beta for the stock currently stands at 0.45.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of NTES was down-trending over the past week, with a drop of -6.63%, but this was down by -6.95% over a month. Three-month performance dropped to -12.98% while six-month performance fell -15.79%. The stock lost -0.24% in the past year, while it has lost -21.63% so far this year. A look at the trailing 12-month EPS for NTES yields 3.86 with Next year EPS estimates of 35.99. For the next quarter, that number is 7.33. This implies an EPS growth rate of 39.00% for this year and 13.13% for next year. EPS is expected to grow by 9.59% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 6.70%.
Float and Shares Shorts:
At present, 654.94 million NTES shares are outstanding with a float of 647.93 million shares on hand for trading. On Jul 14, 2022, short shares totaled 5.45 million, which was 0.83% higher than short shares on Jun 14, 2022. In addition to Mr. Lei Ding as the firm’s Founder, CEO & Director, Mr. Zhaoxuan Yang serves as its Chief Financial Officer.
Through their ownership of 19.38% of NTES’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 3.37% of NTES, in contrast to 12.56% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in NTES with 1.96% of the stake, Invesco Advisers, Inc. holds 13,568,159 shares worth 13,568,159. A second-largest stockholder of NTES, UBS Asset Management Switzerland, holds 7,994,643 shares, controlling over 1.16% of the firm’s shares. UBS Asset Management is the third largest shareholder in NTES, holding 6,598,136 shares or 0.96% stake. With a 1.62% stake in NTES, the Invesco Developing Markets Fund is the largest stakeholder. A total of 11,195,985 shares are owned by the mutual fund manager. The Dodge & Cox International Stock F, which owns about 0.70% of NTES stock, is the second-largest Mutual Fund holder. It holds 4,863,300 shares valued at 430.45 million. UBS holds 0.67% of the stake in NTES, owning 4,635,560 shares worth 410.29 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for NTES since 45 analysts follow the stock currently. There are 37 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 6 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With NTES analysts setting a high price target of $974.18 and a low target of $529.13, the average target price over the next 12 months is $827.88. Based on these targets, NTES could surge 1121.39% to reach the target high and rise by 563.4% to reach the target low. Reaching the average price target will result in a growth of 937.96% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. NTES will report FY 2022 earnings on 02/23/2023. Analysts have provided yearly estimates in a range of $35.69 being high and $26.19 being low. For NTES, this leads to a yearly average estimate of $31.38. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. NetEase Inc. surprised analysts by $0.14 when it reported $1.20 EPS against a consensus estimate of $1.07. The surprise factor in the prior quarter was $0.08. Based on analyst estimates, the high estimate for the next quarter is $8.20 and the low estimate is $6.84. The average estimate for the next quarter is thus $7.63.
Dividends & Yield:
In terms of dividends, NTES has a current ratio of $1.31, which is $1.31 over the trailing 12-months, while a dividend of $0.84 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and NTES currently yields $1.64. In the past year, NTES’s dividend yield has been $1.64, but when looking at the stock over the past five years, its yield has been $1.12. Accordingly, NTES has a current buyback yield of $0.0. This was $0.0 for the TTM.