Tencent Music Entertainment Group (NYSE:TME) Shares Gap Down – Should You Sell?

Tencent Music Entertainment Group Sponsored ADR (NYSE:TME) gapped down before the market opened on Friday . The stock had previously closed at $9.15, but opened at $8.77. Tencent Music Entertainment Group shares last traded at $8.9660, with a volume of 3,449,508 shares trading hands.

Analyst Ratings Changes

A number of research firms recently commented on TME. Zacks Research upgraded shares of Tencent Music Entertainment Group from a “strong sell” rating to a “hold” rating in a research note on Tuesday, May 19th. Mizuho reduced their target price on shares of Tencent Music Entertainment Group from $23.00 to $18.00 and set an “outperform” rating for the company in a report on Wednesday, May 13th. Morgan Stanley restated an “equal weight” rating on shares of Tencent Music Entertainment Group in a report on Thursday, March 19th. Benchmark restated a “hold” rating on shares of Tencent Music Entertainment Group in a report on Wednesday, March 18th. Finally, UBS Group restated a “neutral” rating and set a $13.00 target price (down from $26.00) on shares of Tencent Music Entertainment Group in a report on Wednesday, March 18th. Six equities research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat.com, Tencent Music Entertainment Group has an average rating of “Hold” and an average target price of $21.44.

Tencent Music Entertainment Group Stock Down 3.6%

The business’s 50 day moving average is $9.73 and its 200 day moving average is $14.65. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.08 and a current ratio of 2.09. The stock has a market cap of $13.67 billion, a price-to-earnings ratio of 11.03, a price-to-earnings-growth ratio of 0.57 and a beta of 0.81.

Tencent Music Entertainment Group (NYSE:TME) last posted its quarterly earnings data on Tuesday, March 31st. The company reported $0.11 EPS for the quarter. The firm had revenue of $1.15 billion during the quarter. Tencent Music Entertainment Group had a net margin of 26.45% and a return on equity of 11.20%. Equities analysts expect that Tencent Music Entertainment Group Sponsored ADR will post 0.9 earnings per share for the current year.

Tencent Music Entertainment Group Increases Dividend

The business also recently announced an annual dividend, which was paid on Thursday, April 23rd. Shareholders of record on Thursday, April 2nd were paid a dividend of $0.24 per share. This is an increase from Tencent Music Entertainment Group’s previous annual dividend of $0.18. The ex-dividend date of this dividend was Thursday, April 2nd. This represents a dividend yield of 262.0%. Tencent Music Entertainment Group’s dividend payout ratio (DPR) is 28.75%.

Institutional Investors Weigh In On Tencent Music Entertainment Group

A number of institutional investors have recently modified their holdings of the stock. Schroder Investment Management Group boosted its stake in shares of Tencent Music Entertainment Group by 30.0% during the 4th quarter. Schroder Investment Management Group now owns 80,480,078 shares of the company’s stock valued at $1,410,816,000 after buying an additional 18,554,567 shares during the period. Vanguard Group Inc. boosted its stake in shares of Tencent Music Entertainment Group by 1.4% during the 4th quarter. Vanguard Group Inc. now owns 21,455,738 shares of the company’s stock valued at $376,119,000 after buying an additional 293,385 shares during the period. Krane Funds Advisors LLC boosted its stake in shares of Tencent Music Entertainment Group by 5.4% during the 4th quarter. Krane Funds Advisors LLC now owns 20,047,192 shares of the company’s stock valued at $351,427,000 after buying an additional 1,026,551 shares during the period. Cantillon Capital Management LLC boosted its stake in shares of Tencent Music Entertainment Group by 1.4% during the 4th quarter. Cantillon Capital Management LLC now owns 18,708,502 shares of the company’s stock valued at $327,960,000 after buying an additional 256,286 shares during the period. Finally, Overlook Investments LP acquired a new stake in shares of Tencent Music Entertainment Group during the 4th quarter valued at $278,022,000. Institutional investors and hedge funds own 24.32% of the company’s stock.

About Tencent Music Entertainment Group

Tencent Music Entertainment Group (NYSE: TME) is a China-based digital music and audio entertainment platform that operates a portfolio of leading music streaming and social entertainment services. Its core consumer-facing products include streaming apps, online karaoke (KTV) services and live music and entertainment broadcasts. The company monetizes its content through a mix of subscriptions, digital music sales, in-app purchases, virtual gifting, advertising and licensing arrangements with rights holders.

The company traces its roots to the consolidation of Tencent’s music assets and was established in the mid-2010s to unify several prominent music properties under a single operating entity.