The stock of NetEase Inc. (NASDAQ:NTES) increased by $1.13 on Tuesday to at $104.66, up 1.09 percent. The last five days have seen an average of 1,079,376 shares of common stock traded. 25 times new highs were reached in the current year, with a gain of $31.91. The average number of shares traded over the last 20 days was 878,204, while the average volume over the last 50 days totaled 999,444.
NTES stock dropped -3.75% since last month. On 08/25/23, the company’s shares reached a one-month low of $96.73. The stock touched a high of $110.82 on 08/04/23, after rallying from a low of $53.09 in 52 weeks. The price of NTES stock has risen by 44.10% or $31.91 this year, reaching a new high 25 times. Still, the stock price is down -5.56% from the 52-week high.
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Valuation Metrics
NetEase Inc. (NTES) has a trailing price-to-earnings (P/E) ratio of 19.40. Beta for the stock is 0.60. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 4.96, the price-to-book (PB) ratio of 4.29, and the price-to-cash flow ratio of 104.94.
Company paid $0.5250 per share in dividends, an increase of 12.9% from $0.4650 last year. A $0.06 dividend increase was reported on Thursday August 24 2023.
Financial Health
For the three months ended June 29, NetEase Inc.’s quick ratio was 2.90, while its current ratio was 2.90, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.03, and the total debt to equity ratio is 0.14. As far as profitability goes, gross margin for the trailing twelve months is 56.90% percent. NetEase Inc.’s EBITDA margin for the year ended June 29 was 23.30%, whereas its operating margin stood at 22.70% for the same period. Based on annual data, it had gross profit of $7.65 billion and revenue of $13.99 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. NTES’s return on assets (ROA) during the last 12 months has been 14.80%. There was a 11.00% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 23.70%.
Earnings Surprise
According to NetEase Inc.’s quarterly financial report for the quarter that ended June 29. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $13.99 billion, while revenues rose by 1.74% to $0.0. It was predicted that NetEase Inc.’s quarterly earnings would be $1.9, but it ended up being $1.25, beating the consensus by 52.00%. EBITDA was $918.95 million for the quarter. At the end of NetEase Inc.’s most recent quarter ended June 29, its liabilities totaled 6.86 billion, while its total debt was $15.84 billion.
Technical Picture
Here’s a quick look at NetEase Inc.’s (NTES) price momentum from a technical perspective. As of 28 August, the RSI 9-day stood at 56.79%, suggesting the stock is Neutral, with a 39.37% historical volatility rate.
The stochastic %K and %D were 41.89% and 30.36% respectively, while the average true range (ATR) was 3.01. Based on the 14-day stochastic reading of 58.99%, the RSI (14) reading is 54.28%. On the 9-day MACD Oscillator, the stock is at 1.16, and the 14-day reading is at 0.31.
Analyst Ratings
In its analyst report released on June 05, 2023, Bernstein began covering NetEase Inc. (NASDAQ: NTES). The stock was rated as an Outperform by the brokerage firm. Analysts have assigned NetEase Inc. (NTES) an Buy rating. NTES is a stock that is recommended for selling by 1 brokerage firm, while 1 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 7 rates it overweight and 34 others recommend it as a buy.
What is NTES’s price target for the next 12 months?
The current consensus forecast for the stock is between $499.07 and $1099.62, with a median target price of $892.31. In analyzing these forecasts, the average price target given by analysts for NetEase Inc. (NTES) is $883.73.
