At the last check on Friday, NetEase Inc.’s (NASDAQ:NTES) stock was up $2.48, moving up 2.40 percent to $105.96. The average number of shares traded per day over the past five days has been 970,897 shares. 3 times new highs have been achieved over the past 5 days, with a $7.40 gain in that time frame. In the last twenty days, the average volume was 908,279, while in the previous 50 days, it was 1,006,648.
Since last month, NTES stock retreated -2.67%. Shares of the company fell to $96.73 on 08/25/23, the lowest level in the past month. A 52-week high of $110.82 was reached on 08/04/23 after having rallying from a 52-week low of $53.09. Since the beginning of this year, NTES’s stock price has risen by 45.89% or $33.53, and marked a new high 25 times. However, the stock has declined by -4.39% since its 52-week high.
Valuation Metrics
Right now, NetEase Inc. (NTES) has a P/E ratio of about 19.64. The stock’s beta is 0.60. Besides these, the trailing price-to-sales (P/S) ratio of 5.02, the price-to-book (PB) ratio of 4.34, and the price-to-cash flow ratio of 106.25 may also be considered.
The latest dividend of $0.5250 per share was paid out, which is 12.9% more than last year’s $0.4650.
Financial Health
In the three months ended June 29, NetEase Inc.’s quick ratio stood at 2.90, while its current ratio was 2.90, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 0.03, and the total debt-to-equity ratio was 0.14. On the profitability front, the trailing twelve-month gross margin is 56.90% percent. In the year ended June 29, EBITDA margin amounted to 23.30%, whereas operating margins totaled 22.70%. Based on annual data, NTES earned $7.65 billion in gross profit and brought in $13.99 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 11.00%. Return on equity (ROE) for the past 12 months was 23.70%.
In NetEase Inc.’s quarter-end financial report for June 29, it reported total debt of $529.92 million. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. NTES’s revenue rose 1.74% during the quarter, while net income inched up to $13.99 billion. While analysts expected NetEase Inc. to report $1.25 quarterly earnings, the actual figure was $1.91 per share, beating the consensus estimate by 52.80%. During the quarter, the company generated $918.95 million in EBITDA. The liabilities of NetEase Inc. were 6.86 billion at the end of its most recent quarter ended June 29, and its total debt was $15.84 billion.
Technical Picture
This quick technical analysis looks at NetEase Inc.’s (NTES) price momentum. With a historical volatility rate of 35.91%, the RSI 9-day stood at 60.73% on 31 August.
With respect to its five-day moving average, the current NetEase Inc. price is up by +7.49% percent or $7.40. At present, NTES shares trade -2.18% below its 20-day simple moving average and +19.28% percent above its 100-day simple moving average. However, the stock is currently trading approximately +12.36% above its SMA50 and +62.72% above its SMA200.
Stochastic coefficient K was 80.26% and Stochastic coefficient D was 72.17%, while ATR was 2.88. Given the Stochastic reading of 86.95% for the 14-day period, the RSI (14) reading has been calculated as 57.26%. As of today, the MACD Oscillator reading stands at 1.90, while the 14-day reading stands at 2.54.
Analyst Ratings
Bernstein launched its rating on NetEase Inc. (NASDAQ: NTES) to an Outperform in a note to investors on June 05, 2023. NetEase Inc. (NTES) has been rated Buy by analysts. According to 1 brokerage firm, NTES is a sell, and 1 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 7 analysts rate NetEase Inc. stock as buy, with 34 recommending it as overweight.
With a median target price of $892.31, the current consensus forecast for the stock is $499.07 – $1099.62. Based on these forecasts, analysts predict NetEase Inc. (NTES) will achieve an average price target of $883.73.
