Alberta Investment Management Corp Reduces Stake in NetEase, Inc. (NASDAQ:NTES)

Alberta Investment Management Corp has significantly reduced its holdings in NetEase, Inc. (NASDAQ: NTES) by 95.0% during the fourth quarter, as stated in their latest filing with the Securities and Exchange Commission (SEC). Following this sale, the institutional investor now holds 3,400 shares of the technology company, having divested 64,804 shares in the process. At the close of the recent quarter, Alberta Investment Management Corp’s investment in NetEase was valued at approximately $303,000.

Recently, various hedge funds and other institutional investors have also adjusted their positions in NetEase stock. For instance, UBS Asset Management Americas LLC made a notable move by increasing its stake in NetEase by an astonishing 13,747.9% during the third quarter, resulting in ownership of 6,258,442 shares, worth about $585,227,000 after acquiring an additional 6,213,248 shares. Similarly, Hhlr Advisors LTD raised its holdings in NetEase by 86.8%, bringing its total to 2,588,943 shares valued at around $242,092,000, following the purchase of 1,203,129 shares last quarter.

Other Institutional Changes

Fisher Asset Management LLC also increased its investment in NetEase by 7.8%, now owning 1,145,657 shares valued at $107,130,000 after adding 82,474 shares. Wellington Management Group LLP raised its stake by 1.1%, reaching ownership of 1,020,213 shares worth approximately $95,400,000. Additionally, Van ECK Associates Corp upped their position by 12.3%, now holding 666,411 shares valued at $62,316,000 after acquiring 72,988 shares last quarter. Overall, institutional investors and hedge funds collectively own about 11.07% of NetEase’s stock.

Analyst Ratings and Price Targets

The stock, NTES, has been subject to several analyst reports recently. Benchmark increased its price target for NetEase from $105.00 to $115.00, assigning a "buy" rating on the stock. Similarly, Bank of America raised its target price from $120.00 to $122.00, also giving it a "buy" rating in a report issued on January 15. Morgan Stanley and Citigroup have similarly lifted their price targets for the stock, indicating bullish sentiments among analysts. In total, while one analyst has rated NetEase as a hold, seven others have designated it with a buy rating, leading to an overall average rating of "Moderate Buy" with a consensus price target of $111.43 according to MarketBeat.com.

Current Performance of NetEase Stock

As of the latest trading day, NetEase shares opened at $103.22. The company has a market capitalization of $66.28 billion and maintains a price-to-earnings (P/E) ratio of 16.20 along with a beta of 0.58. NetEase's stock price has ranged between $75.85 and $114.50 over the past year, with current 50-day and 200-day moving averages of $97.77 and $89.77, respectively. NetEase recently reported its quarterly earnings, revealing earnings per share of $1.87, surpassing analysts' consensus estimates of $1.73, and achieved revenue of $3.66 billion during the quarter.

Dividend Announcement

The company made headlines by announcing a quarterly dividend, which is scheduled for distribution on March 17. Shareholders recorded by March 6 will receive a dividend of $0.435 per share, leading to an annualized dividend yield of 1.69%. The ex-dividend date is set for March 6, and the company's dividend payout ratio currently stands at 76.61%.

About NetEase, Inc.

NetEase, Inc. operates primarily in online gaming, music streaming, online education, and various internet content services, both in China and internationally. The company is divided into segments including Games and Related Value-Added Services, Youdao, Cloud Music, and Innovative Businesses and Others.

NetEase, Investment, Stocks