Hsbc Holdings PLC Reduces Holdings in Tencent Music Entertainment Group Sponsored ADR $TME

Key Points

• HSBC Holdings PLC reduced its stake in Tencent Music Entertainment Group by 11.8% in the first quarter, selling 368,635 shares and leaving it with 2.75 million shares valued at about $25.6 million.
• Institutional ownership remains meaningful, with hedge funds and other institutional investors holding 24.32% of the company; several firms, including Vanguard and Goldman Sachs, increased their positions.
• Wall Street sentiment is mixed: analysts currently rate TME as a “Hold” overall, with an average price target of $21.44, while the stock was trading at $8.95 and the company reported $0.11 EPS on $1.15 billion in revenue in its latest quarter.

Hsbc Holdings PLC lowered its stake in Tencent Music Entertainment Group Sponsored ADR (NYSE:TME - Free Report) by 11.8% during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 2,754,314 shares of the company's stock after selling 368,635 shares during the quarter. Hsbc Holdings PLC owned about 0.18% of Tencent Music Entertainment Group worth $25,566,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors have also bought and sold shares of the company. Robeco Institutional Asset Management B.V. grew its holdings in Tencent Music Entertainment Group by 7.3% during the 4th quarter. Robeco Institutional Asset Management B.V. now owns 5,706,740 shares of the company's stock valued at $100,039,000 after buying an additional 387,109 shares in the last quarter. SG Americas Securities LLC raised its holdings in Tencent Music Entertainment Group by 85.7% in the fourth quarter. SG Americas Securities LLC now owns 542,198 shares of the company's stock worth $9,505,000 after purchasing an additional 250,261 shares in the last quarter. Vanguard Group Inc. increased its position in 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 in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank grew its holdings in shares of Tencent Music Entertainment Group by 414.3% during the fourth 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 during the last quarter. Finally, Goldman Sachs Group Inc. increased its position in shares of Tencent Music Entertainment Group by 7.3% in the 4th quarter. Goldman Sachs Group Inc. now owns 7,863,263 shares of the company's stock valued at $137,843,000 after acquiring an additional 537,047 shares during the period. Hedge funds and other institutional investors own 24.32% of the company's stock.

Wall Street Analyst Weigh In

Several analysts have weighed in on the company. Zacks Research upgraded Tencent Music Entertainment Group from a "strong sell" rating to a "hold" rating in a research note on Tuesday, May 19th. Weiss Ratings raised Tencent Music Entertainment Group from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, July 1st. JPMorgan Chase & Co. cut their price target on shares of Tencent Music Entertainment Group from $12.00 to $10.00 and set a "neutral" rating on the stock in a report on Thursday, May 14th. Finally, Mizuho reduced their price target on shares of 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. Six analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Tencent Music Entertainment Group presently has an average rating of "Hold" and an average price target of $21.44.

Tencent Music Entertainment Group Stock Performance

TME opened at $8.95 on Wednesday. The firm has a market capitalization of $14.09 billion, a PE ratio of 11.19, a PEG ratio of 0.60 and a beta of 0.82. Tencent Music Entertainment Group Sponsored ADR has a twelve month low of $7.94 and a twelve month high of $26.70. The firm's 50-day moving average price is $8.90 and its 200 day moving average price is $11.69. The company has a current ratio of 2.09, a quick ratio of 2.08 and a debt-to-equity ratio of 0.06.

Tencent Music Entertainment Group (NYSE:TME - Get Free Report) last announced its quarterly earnings data on Tuesday, March 31st. The company reported $0.11 EPS for the quarter. Tencent Music Entertainment Group had a return on equity of 11.20% and a net margin of 26.45%.The firm had revenue of $1.15 billion for the quarter. As a group, sell-side analysts expect that Tencent Music Entertainment Group Sponsored ADR will post 0.9 EPS for the current fiscal year.

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.

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