NetEase Inc. (NASDAQ:NTES) traded with a subtraction of -$4.63 to $98.01 on Thursday, a downside of -4.51 percent. An average of 898,617 shares of common stock have been traded in the last five days. There was a fall of -$3.21 in the past week, and it reached a new high 16 times over the past 12 months. The last 20 days have seen an average of 829,604 shares traded, while the 50-day average volume stands at 1,027,132.
NTES stock has decreased by -10.07% in the last month. The company shares reached their 1-month lowest point of $96.83 on 08/24/23. With the stock rallying to its 52-week high on 08/04/23, shares of the company touched a low of $53.09 and a high of $110.82 in 52 weeks. It has reached a new high 25 times so far this year and achieved 34.94% or $25.60 in price. In spite of this, the price is down -11.56% from the 52-week high.
Valuation Metrics
NetEase Inc. (NTES) has a trailing price-to-earnings (P/E) ratio of 21.24. The stock’s beta is 0.60. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 4.85, the price-to-book (PB) ratio at 4.24, and the price-to-cash flow ratio at 85.26.
The company’s most recent quarterly dividend payment was $0.4650 a share, representing a up of 72.22% from $0.27 last year. Its latest increase dividend $0.1950 reported on Thursday May 25 2023.
Financial Health
The quick ratio of NetEase Inc. for the three months ended March 30 was 2.30, and the current ratio was 2.30, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.03 and a total debt to equity ratio of 0.29 for the quarter ending March 30. NetEase Inc.’s EBITDA margin for the year ending March 30 is 23.30%, while its operating margin for the same period stands at 21.80%. Its gross profit as reported stood at $7.65 billion compared to revenue of $13.99 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, NetEase Inc.’s return on assets was 13.10%.
Earnings Surprise
For the three-month period that ended March 30, NetEase Inc. had $529.92 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $2.95 billion in the quarter, while revenues were grew 10.29%. The analyst consensus anticipated NetEase Inc.’s latest quarter earnings to come in at $1.23 per share, but it turned out to be $1.62, a 31.70% surprise. For the quarter, EBITDA amounted to $1.21 billion.
Technical Picture
From a technical analysis perspective, let’s take a brief look at NetEase Inc. (NTES) price momentum. RSI 9-day as of the close on 23 August was 33.41%, suggesting the stock is Neutral, with historical volatility in this time frame at 31.10%.
As of today, NTES’s price is $100.28 -3.16% or -$3.21 from its 5-day moving average. NTES is currently trading -8.20% lower than its 20-day SMA and +11.07% higher than its 100-day SMA. However, the stock’s current price level is +2.94% above the SMA50 and +57.12% above the SMA200.
The stochastic %K and %D were 26.71% and 25.25%, respectively, and the average true range (ATR) was 2.85. With the 14-day stochastic at 10.65% and the average true range at 2.77, the RSI (14) stands at 38.88%. The stock has reached -0.21 on the 9-day MACD Oscillator while the 14-day reading was at -2.16.
Analyst Ratings
Bernstein launched coverage on NetEase Inc. (NASDAQ: NTES) in its analyst report released on June 05, 2023. The firm assigned the stock an Outperform rating. The consensus rating for NetEase Inc. (NTES) among analysts is Buy. According to current brokerage recommendations, 1 brokerage firm advise that investors sell NTES, while 1 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 7 analysts, while 34 others rate it as a “buy”.
What is NTES’s price target for the next 12 months?
Analysts predict a range of price targets between $499.07 and $1255.28, with a median target of $859.31. Taking a look at these predictions, the average price target given by analysts for NetEase Inc. (NTES) stock is $850.23.
