Tencent Music Entertainment Group Sponsored ADR $TME Stock Holdings Lessened by Capital World Investors

Key Points

• Capital World Investors cut its stake in Tencent Music Entertainment Group by 32.8% in the fourth quarter, selling 3.44 million shares and leaving it with 7.03 million shares worth about $123.2 million.
• Other major institutions were mixed on the stock: firms like Vanguard and Robeco increased holdings, while institutional investors collectively own 24.32% of Tencent Music’s shares.
• Tencent Music reported quarterly EPS of $0.11 on revenue of $1.15 billion, and it also raised its annual dividend to $0.24 per share from $0.18, while analysts currently have a consensus Hold rating with a $21.44 price target.

Capital World Investors lowered its stake in Tencent Music Entertainment Group Sponsored ADR (NYSE:TME - Free Report) by 32.8% during the 4th quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 7,030,660 shares of the company's stock after selling 3,438,815 shares during the period. Capital World Investors' holdings in Tencent Music Entertainment Group were worth $123,247,000 as of its most recent filing with the SEC.

Other institutional investors also recently modified their holdings of the company. Robeco Institutional Asset Management B.V. increased its holdings 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 buying an additional 387,109 shares in the last quarter. SG Americas Securities LLC increased its holdings in shares of 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 valued at $9,505,000 after buying an additional 250,261 shares in the last quarter. Vanguard Group Inc. increased its holdings in shares of Tencent Music Entertainment Group by 1.4% in the fourth 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 increased its holdings in shares of Tencent Music Entertainment Group by 414.3% in 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 in the last quarter. Finally, Green Court Capital Management Ltd increased its holdings in shares of Tencent Music Entertainment Group by 93.1% in the third quarter. Green Court Capital Management Ltd now owns 1,039,078 shares of the company's stock valued at $24,252,000 after buying an additional 501,078 shares in the last quarter. Institutional investors own 24.32% of the company's stock.

Tencent Music Entertainment Group Price Performance

Shares of NYSE:TME opened at $9.09 on Tuesday. The company's fifty day moving average is $9.28 and its two-hundred day moving average is $13.71. The company has a quick ratio of 2.08, a current ratio of 2.09 and a debt-to-equity ratio of 0.06. Tencent Music Entertainment Group Sponsored ADR has a 12-month low of $8.44 and a 12-month high of $26.70. The company has a market cap of $14.30 billion, a P/E ratio of 11.36, a price-to-earnings-growth ratio of 0.59 and a beta of 0.80.

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

Tencent Music Entertainment Group Increases Dividend

The company 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 yield of 262.0%. Tencent Music Entertainment Group's dividend payout ratio (DPR) is presently 28.75%.

Analysts Set New Price Targets

Several research analysts have issued reports on the company. Jefferies Financial Group reaffirmed a "buy" rating and issued a $23.00 price target on shares of Tencent Music Entertainment Group in a report on Tuesday, March 17th. Daiwa Securities Group reaffirmed a "hold" rating and issued a $12.00 price target on shares of Tencent Music Entertainment Group in a report on Wednesday, March 18th. Mizuho dropped their price target on Tencent Music Entertainment Group from $23.00 to $18.00 and set an "outperform" rating on the stock in a report on Wednesday, May 13th. Barclays dropped their price target on Tencent Music Entertainment Group from $28.00 to $20.00 and set an "overweight" rating on the stock in a report on Thursday, March 19th. Finally, UBS Group reissued a "neutral" rating and set a $13.00 target price (down from $26.00) on shares of Tencent Music Entertainment Group in a research note on Wednesday, March 18th. Six equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $21.44.

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.

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