Tencent Music Entertainment Group (NYSE:TME) Shares Gap Up - Here's Why

Key Points

• Tencent Music Entertainment Group (NYSE:TME) shares surged, opening at $24.59 after a previous close of $22.70, with the last traded price at $25.03 and a volume of over 4.6 million shares.
• Analyst ratings on TME vary, with Macquarie setting a target price of $26.20, while Wall Street Zen downgraded from "buy" to "hold"; the current consensus rating is "Moderate Buy" with an average target price of $16.60.
• Institutional investors collectively own 24.32% of TME, with several newly establishing positions or increasing their stakes, indicating growing interest in the company.

Tencent Music Entertainment Group Sponsored ADR (NYSE:TME - Get Free Report)'s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $22.70, but opened at $24.59. Tencent Music Entertainment Group shares last traded at $25.03, with a volume of 4,640,588 shares.

Analyst Ratings Changes

Several equities research analysts have commented on TME shares. Wall Street Zen downgraded shares of Tencent Music Entertainment Group from a "buy" rating to a "hold" rating in a report on Monday, August 11th. Benchmark upped their price objective on shares of Tencent Music Entertainment Group from $19.00 to $28.00 and gave the company a "buy" rating in a report on Wednesday. Sanford C. Bernstein set a $27.50 price objective on shares of Tencent Music Entertainment Group and gave the company an "outperform" rating in a report on Wednesday. Citigroup upped their price objective on shares of Tencent Music Entertainment Group from $23.00 to $29.00 and gave the company a "buy" rating in a report on Tuesday. Finally, Macquarie set a $29.80 price objective on shares of Tencent Music Entertainment Group and gave the company an "outperform" rating in a report on Tuesday. One equities research analyst has rated the stock with a hold rating, nine have given a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat, Tencent Music Entertainment Group has an average rating of "Buy" and a consensus target price of $24.47.

Tencent Music Entertainment Group Stock Performance

The company has a 50-day moving average price of $20.61 and a two-hundred day moving average price of $16.24. The stock has a market capitalization of $43.81 billion, a P/E ratio of 28.05 and a beta of 0.50. The company has a quick ratio of 1.83, a current ratio of 1.87 and a debt-to-equity ratio of 0.04.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Northwestern Mutual Wealth Management Co. increased its position in shares of Tencent Music Entertainment Group by 5.0% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 13,553 shares of the company's stock worth $264,000 after purchasing an additional 651 shares during the last quarter. PDS Planning Inc increased its position in shares of Tencent Music Entertainment Group by 5.6% in the second quarter. PDS Planning Inc now owns 12,561 shares of the company's stock worth $245,000 after purchasing an additional 665 shares during the last quarter. DekaBank Deutsche Girozentrale increased its position in shares of Tencent Music Entertainment Group by 0.8% in the second quarter. DekaBank Deutsche Girozentrale now owns 101,362 shares of the company's stock worth $1,975,000 after purchasing an additional 842 shares during the last quarter. BNP Paribas increased its position in shares of Tencent Music Entertainment Group by 2.0% in the fourth quarter. BNP Paribas now owns 58,066 shares of the company's stock worth $659,000 after purchasing an additional 1,131 shares during the last quarter. Finally, PNC Financial Services Group Inc. increased its position in shares of Tencent Music Entertainment Group by 11.0% in the second quarter. PNC Financial Services Group Inc. now owns 12,799 shares of the company's stock worth $249,000 after purchasing an additional 1,269 shares during the last quarter. 24.32% of the stock is currently owned by institutional investors.

About Tencent Music Entertainment Group

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.