Tencent Music Entertainment Group (NYSE:TME) Stock Falls 4.7% - Here's Why

Key Points

• Tencent Music shares fell 4.7% to approximately $7.98, with trading volume about 90% below the average session volume.
• Analyst sentiment remains cautious: the stock has an average “Hold” rating, with 10 holds and three buys; recent price targets include reductions from Mizuho and a downgrade by China Renaissance.
• The company reported quarterly earnings of $0.25 per share on $1.31 billion in revenue, while institutional investors own 24.32% of the stock.

Tencent Music Entertainment Group Sponsored ADR (NYSE:TME - Get Free Report) shares dropped 4.7% during trading on Tuesday. The stock traded as low as $7.97 and last traded at $7.9750. 897,151 shares were traded during trading, a decline of 90% from the average session volume of 9,275,281 shares. The stock had previously closed at $8.37.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on TME. Mizuho dropped their price target on shares of Tencent Music Entertainment Group from $18.00 to $15.00 and set an "outperform" rating for the company in a research report on Wednesday, August 12th. China Renaissance downgraded Tencent Music Entertainment Group from a "buy" rating to a "hold" rating and set a $9.30 price target on the stock. in a research report on Wednesday, August 12th. Weiss Ratings upgraded Tencent Music Entertainment Group from a "hold (c-)" rating to a "hold (c)" rating in a research note on Wednesday, July 1st. Nomura set a $10.00 price objective on Tencent Music Entertainment Group and gave the company a "neutral" rating in a report on Thursday, August 13th. Finally, UBS Group set a $15.00 target price on Tencent Music Entertainment Group in a research report on Wednesday, August 12th. Three equities research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $17.21.

Tencent Music Entertainment Group Trading Down 5.1%

The firm's fifty day simple moving average is $8.67 and its 200 day simple moving average is $9.14. The stock has a market capitalization of $12.50 billion, a P/E ratio of 9.82, a price-to-earnings-growth ratio of 1.47 and a beta of 0.85. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.74 and a current ratio of 1.74.

Tencent Music Entertainment Group (NYSE:TME - Get Free Report) last released its earnings results on Tuesday, June 30th. The company reported $0.25 earnings per share for the quarter. The firm had revenue of $1.31 billion during the quarter. Tencent Music Entertainment Group had a return on equity of 11.53% and a net margin of 26.27%. As a group, equities research analysts forecast that Tencent Music Entertainment Group Sponsored ADR will post 0.87 EPS for the current fiscal year.

Institutional Trading of Tencent Music Entertainment Group

Several institutional investors and hedge funds have recently modified their holdings of the business. Hantz Financial Services Inc. grew its position in Tencent Music Entertainment Group by 99.6% in the fourth quarter. Hantz Financial Services Inc. now owns 8,159 shares of the company's stock valued at $143,000 after acquiring an additional 4,072 shares during the last quarter. NewEdge Wealth LLC acquired a new stake in shares of Tencent Music Entertainment Group in the 1st quarter valued at approximately $106,000. Summit Securities Group LLC bought a new stake in shares of Tencent Music Entertainment Group during the 1st quarter valued at approximately $110,000. Avise Financial Cooperative Inc. bought a new stake in shares of Tencent Music Entertainment Group during the 2nd quarter valued at approximately $101,000. Finally, QRG Capital Management Inc. boosted its stake in shares of Tencent Music Entertainment Group by 10.9% during the second quarter. QRG Capital Management Inc. now owns 12,809 shares of the company's stock valued at $107,000 after purchasing an additional 1,255 shares in the last quarter. 24.32% of the stock is currently owned by institutional investors.

About Tencent Music Entertainment Group

Tencent Music Entertainment Group is a China-based online music and audio entertainment company. It operates digital music platforms including QQ Music, Kugou Music and Kuwo Music, which provide users with licensed songs, albums, music videos, playlists, podcasts and other audio content. The company also operates WeSing, a social karaoke service that allows users to sing, record and share performances.

The company generates revenue through music subscriptions, digital advertising, content sales, and social entertainment services such as virtual gifts, live streaming and karaoke-related offerings.

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