NetEase Inc ADR (NASDAQ: NTES)’s stock price has increased by 0.44 compared to its previous closing price of 87.76. However, the company has seen a -4.51% decrease in its stock price over the last five trading sessions. marketbeat.com reported 2024-12-29 that The gaming industry is experiencing explosive growth, fueled by rapid technological advancements and soaring consumer demand. Valued at $220 billion in 2024, the gaming sector is projected to reach $260 billion by 2026.
Is It Worth Investing in NetEase Inc ADR (NASDAQ: NTES) Right Now?
NetEase Inc ADR (NASDAQ: NTES) has a higher price-to-earnings ratio of 14.97x compared to its average ratio. NTES has 36-month beta value of 0.57. Analysts have mixed views on the stock, with 24 analysts rating it as a “buy,” 4 as “overweight,” 4 as “hold,” and 0 as “sell.”
The public float for NTES is 622.34M, and currently, short sellers hold a 0.58% ratio of that float. The average trading volume of NTES on January 03, 2025 was 1.45M shares.
NTES’s Market Performance
NTES stock saw a decrease of -4.51% in the past week, with a monthly decline of -1.36% and a quarterly a decrease of -13.12%. The volatility ratio for the week is 1.56%, and the volatility levels for the last 30 days are 1.70% for NetEase Inc ADR (NTES). The simple moving average for the last 20 days is -4.85% for NTES stock, with a simple moving average of -2.59% for the last 200 days.
Analysts’ Opinion of NTES
Many brokerage firms have already submitted their reports for NTES stocks, with Barclays repeating the rating for NTES by listing it as a “Equal Weight.” The predicted price for NTES in the upcoming period, according to Barclays is $104 based on the research report published on June 13, 2024 of the previous year 2024.
Morgan Stanley, on the other hand, stated in their research note that they expect to see NTES reach a price target of $100. The rating they have provided for NTES stocks is “Equal-Weight” according to the report published on May 23rd, 2024.
Morgan Stanley gave a rating of “Overweight” to NTES, setting the target price at $120 in the report published on April 12th of the previous year.
NTES Trading at 1.42% from the 50-Day Moving Average
After a stumble in the market that brought NTES to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -23.02% of loss for the given period.
Volatility was left at 1.70%, however, over the last 30 days, the volatility rate increased by 1.56%, as shares sank -2.95% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +8.72% upper at present.
During the last 5 trading sessions, NTES fell by -4.55%, which changed the moving average for the period of 200-days by -16.48% in comparison to the 20-day moving average, which settled at $92.64. In addition, NetEase Inc ADR saw -1.19% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at NTES starting from Leung Michael Man Kit, who proposed sale 10,015 shares at the price of $84.49 back on Nov 18 ’24. After this action, Leung Michael Man Kit now owns shares of NetEase Inc ADR, valued at $846,167 using the latest closing price.
Stock Fundamentals for NTES
Current profitability levels for the company are sitting at:
- 0.27 for the present operating margin
- 0.63 for the gross margin
The net margin for NetEase Inc ADR stands at 0.26. The total capital return value is set at 0.21. Equity return is now at value 21.66, with 15.32 for asset returns.
Based on NetEase Inc ADR (NTES), the company’s capital structure generated 0.08 points at debt to capital in total, while cash flow to debt ratio is standing at 3.49.
Currently, EBITDA for the company is 30.76 billion with net debt to EBITDA at -0.3. When we switch over and look at the enterprise to sales, we see a ratio of 3.7. The receivables turnover for the company is 17.12for trailing twelve months and the total asset turnover is 0.57. The liquidity ratio also appears to be rather interesting for investors as it stands at 3.08.
Conclusion
To put it simply, NetEase Inc ADR (NTES) has had a bad performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
