Tencent Music Entertainment Group (NYSE:TME) Shares Gap Down – What’s Next?

Tencent Music Entertainment Group Sponsored ADR (NYSE:TME)’s share price gapped down before the market opened on Tuesday . The stock had previously closed at $9.90, but opened at $8.63. Tencent Music Entertainment Group shares last traded at $8.9250, with a volume of 7,018,044 shares.

Analysts Set New Price Targets

TME has been the topic of several research reports. Zacks Research raised shares of Tencent Music Entertainment Group from a “strong sell” rating to a “hold” rating in a research note on Tuesday, May 19th. Mizuho dropped their price target on Tencent Music Entertainment Group from $23.00 to $18.00 and set an “outperform” rating for the company in a research report on Wednesday, May 13th. Weiss Ratings upgraded Tencent Music Entertainment Group from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, July 1st. Finally, JPMorgan Chase & Co. dropped their target price on Tencent Music Entertainment Group from $12.00 to $10.00 and set a “neutral” rating for the company in a report on Thursday, May 14th. Six research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $21.44.

Tencent Music Entertainment Group Price Performance

The stock’s 50 day moving average is $9.00 and its two-hundred day moving average is $10.91. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.09 and a quick ratio of 2.08. The stock has a market capitalization of $13.79 billion, a PE ratio of 11.02, a price-to-earnings-growth ratio of 0.63 and a beta of 0.84.

Tencent Music Entertainment Group (NYSE:TME) last issued its quarterly earnings results on Tuesday, June 30th. The company reported $0.25 earnings per share (EPS) for the quarter. The company had revenue of $1.31 billion during the quarter. Tencent Music Entertainment Group had a net margin of 26.45% and a return on equity of 11.20%. As a group, sell-side analysts forecast that Tencent Music Entertainment Group Sponsored ADR will post 0.89 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Robeco Institutional Asset Management B.V. grew its position in shares of Tencent Music Entertainment Group by 7.3% in the fourth quarter. Robeco Institutional Asset Management B.V. now owns 5,706,740 shares of the company’s stock valued at $100,039,000 after purchasing an additional 387,109 shares during the last quarter. Vanguard Group Inc. lifted its stake in Tencent Music Entertainment Group by 1.4% in 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 in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank lifted its stake in Tencent Music Entertainment Group by 414.3% in the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 1,130,608 shares of the company’s stock valued at $19,820,000 after buying an additional 910,767 shares in the last quarter. Goldman Sachs Group Inc. grew its holdings in Tencent Music Entertainment Group by 7.3% during the 4th quarter. Goldman Sachs Group Inc. now owns 7,863,263 shares of the company’s stock valued at $137,843,000 after buying an additional 537,047 shares during the last quarter. Finally, Sumitomo Mitsui Trust Group Inc. grew its holdings in Tencent Music Entertainment Group by 312.3% during the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 5,764,321 shares of the company’s stock valued at $101,049,000 after buying an additional 4,366,226 shares during the last quarter. 24.32% of the stock is currently owned by hedge funds and other institutional investors.

Tencent Music Entertainment Group Company Profile

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.