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

Tencent Music Entertainment Group (NYSE:TME)’s share price gapped down prior to trading on Thursday . The stock had previously closed at $12.13, but opened at $11.76. Tencent Music Entertainment Group shares last traded at $11.64, with a volume of 174,944 shares traded.

Wall Street Analysts Forecast Growth

TME has been the topic of several analyst reports. Morgan Stanley downgraded shares of Tencent Music Entertainment Group from an “overweight” rating to an “equal weight” rating and dropped their target price for the stock from $15.00 to $13.00 in a research report on Wednesday, September 25th. Benchmark dropped their target price on shares of Tencent Music Entertainment Group from $19.00 to $15.00 and set a “buy” rating on the stock in a research report on Wednesday, August 14th. Bank of America dropped their target price on shares of Tencent Music Entertainment Group from $18.00 to $15.00 and set a “buy” rating on the stock in a research report on Wednesday, August 14th. Daiwa Capital Markets downgraded shares of Tencent Music Entertainment Group from an “outperform” rating to a “neutral” rating in a research report on Tuesday, August 13th. Finally, Daiwa America downgraded shares of Tencent Music Entertainment Group from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, August 13th. Four analysts have rated the stock with a hold rating and nine have assigned a buy rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $12.67.

Tencent Music Entertainment Group Price Performance

The company has a debt-to-equity ratio of 0.09, a current ratio of 2.34 and a quick ratio of 2.34. The stock has a market capitalization of $20.06 billion, a price-to-earnings ratio of 24.25, a PEG ratio of 0.95 and a beta of 0.66. The stock’s 50 day simple moving average is $11.22 and its 200-day simple moving average is $12.86.

Tencent Music Entertainment Group (NYSE:TME) last posted its earnings results on Tuesday, August 13th. The company reported $0.15 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.16 by ($0.01). The business had revenue of $985.00 million during the quarter, compared to analyst estimates of $1 billion. Tencent Music Entertainment Group had a net margin of 20.35% and a return on equity of 10.11%. On average, analysts expect that Tencent Music Entertainment Group will post 0.62 EPS for the current fiscal year.

Institutional Trading of Tencent Music Entertainment Group

A number of institutional investors have recently added to or reduced their stakes in TME. SageView Advisory Group LLC acquired a new stake in Tencent Music Entertainment Group in the fourth quarter valued at approximately $90,000. Nomura Holdings Inc. lifted its stake in shares of Tencent Music Entertainment Group by 454.4% in the fourth quarter. Nomura Holdings Inc. now owns 230,516 shares of the company’s stock worth $2,077,000 after buying an additional 188,937 shares during the last quarter. Perpetual Ltd lifted its stake in shares of Tencent Music Entertainment Group by 1.5% in the first quarter. Perpetual Ltd now owns 1,471,310 shares of the company’s stock worth $16,464,000 after buying an additional 22,306 shares during the last quarter. Banque Cantonale Vaudoise lifted its stake in shares of Tencent Music Entertainment Group by 1,027.8% in the first quarter. Banque Cantonale Vaudoise now owns 202,999 shares of the company’s stock worth $2,271,000 after buying an additional 185,000 shares during the last quarter. Finally, Ballentine Partners LLC lifted its stake in shares of Tencent Music Entertainment Group by 44.2% in the first quarter. Ballentine Partners LLC now owns 21,816 shares of the company’s stock worth $244,000 after buying an additional 6,684 shares during the last quarter. 24.32% of the stock is currently owned by institutional investors and hedge funds.

Tencent Music Entertainment Group Company Profile

Tencent Music Entertainment Group operates online music entertainment platforms to provide music streaming, online karaoke, and live streaming services in the People's Republic of China. It offers QQ Music, Kugou Music, and Kuwo Music that enable users to discover music in personalized ways; long-form audio content, including audiobooks, podcasts and talk shows, as well as music-oriented video content comprising music videos, live performances, and short videos; and WeSing, which enables users to sing along from its library of karaoke songs and share their performances in audio or video formats with friends.