Tencent Music Entertainment Group (NYSE:TME) Trading Down 4.1% - Here's Why

Key Points

• Tencent Music Entertainment Group's stock dropped 4.1% to $25.28 during mid-day trading, with an increased trading volume of approximately 7.9 million shares.
• Analysts are generally optimistic, with multiple upgrades to the stock, including a "buy" rating from Wall Street Zen and a target price of $29.80 set by Macquarie.
• Institutional investors have increased their stakes in Tencent Music, reflecting growing confidence, as about 24.32% of the company's stock is held by these investors.

Shares of Tencent Music Entertainment Group Sponsored ADR (NYSE:TME - Get Free Report) were down 4.1% during trading on Thursday . The stock traded as low as $25.28 and last traded at $25.28. Approximately 7,896,358 shares were traded during mid-day trading, an increase of 9% from the average daily volume of 7,267,173 shares. The stock had previously closed at $26.36.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on TME. Benchmark upped their price objective on shares of Tencent Music Entertainment Group from $19.00 to $28.00 and gave the stock a "buy" rating in a research report on Wednesday, August 13th. Sanford C. Bernstein set a $27.50 price objective on shares of Tencent Music Entertainment Group and gave the stock an "outperform" rating in a research report on Wednesday, August 13th. Zacks Research upgraded shares of Tencent Music Entertainment Group from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, August 26th. Citigroup restated a "buy" rating and set a $29.00 price objective (up previously from $23.00) on shares of Tencent Music Entertainment Group in a research report on Tuesday, August 12th. Finally, Daiwa Capital Markets upgraded shares of Tencent Music Entertainment Group from a "neutral" rating to an "outperform" rating in a research report on Tuesday, August 12th. Two analysts have rated the stock with a Strong Buy rating and nine have assigned a Buy rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Buy" and a consensus price target of $24.47.

Tencent Music Entertainment Group Stock Performance

The company's fifty day moving average price is $23.68 and its two-hundred day moving average price is $18.41. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.87 and a current ratio of 1.87. The firm has a market capitalization of $43.09 billion, a PE ratio of 27.59 and a beta of 0.54.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of TME. Nuveen LLC purchased a new position in Tencent Music Entertainment Group in the first quarter valued at approximately $85,498,000. Norges Bank purchased a new position in Tencent Music Entertainment Group in the second quarter valued at approximately $110,813,000. Mirae Asset Global Investments Co. Ltd. raised its holdings in Tencent Music Entertainment Group by 3,382.1% in the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 4,481,537 shares of the company's stock valued at $64,579,000 after buying an additional 4,352,834 shares during the period. Krane Funds Advisors LLC raised its holdings in Tencent Music Entertainment Group by 20.8% in the first quarter. Krane Funds Advisors LLC now owns 23,984,629 shares of the company's stock valued at $345,619,000 after buying an additional 4,128,678 shares during the period. Finally, JPMorgan Chase & Co. raised its holdings in Tencent Music Entertainment Group by 26.4% in the second quarter. JPMorgan Chase & Co. now owns 19,501,541 shares of the company's stock valued at $380,085,000 after buying an additional 4,071,323 shares during the period. Hedge funds and other institutional investors own 24.32% of the company's stock.

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.