Tencent (OTCMKTS:TCEHY) Reaches New 1-Year Low - What's Next?

Key Points

• Tencent hit a new 52-week low, trading as low as $60.30 (last $60.65) on Tuesday with about 770,930 shares changing hands, down from a prior close of $61.03.
• Analysts have recently trimmed ratings—Zacks and Erste downgraded Tencent to Hold—yet the consensus on MarketBeat is a "Moderate Buy" with an average price target of $102.00, well above the current share price.
• Fundamentals show Tencent is a large-cap tech name (market cap ~$552.9B) with a P/E of 17.93 and low leverage (debt/equity 0.27), but its 50-day ($65.46) and 200-day ($73.92) moving averages are both above the current price, indicating recent weakness.

Shares of Tencent Holding Ltd. (OTCMKTS:TCEHY - Get Free Report) hit a new 52-week low during trading on Tuesday . The stock traded as low as $60.30 and last traded at $60.65, with a volume of 770930 shares trading hands. The stock had previously closed at $61.03.

Analyst Upgrades and Downgrades

Several brokerages have commented on TCEHY. Zacks Research downgraded Tencent from a "strong-buy" rating to a "hold" rating in a report on Monday, March 23rd. Erste Group Bank downgraded Tencent from a "buy" rating to a "hold" rating in a report on Wednesday, February 18th. Two investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, Tencent has an average rating of "Moderate Buy" and an average price target of $102.00.

Tencent Stock Performance

The firm's 50 day moving average price is $65.46 and its 200-day moving average price is $73.92. The firm has a market cap of $552.92 billion, a price-to-earnings ratio of 17.93 and a beta of 0.34. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.44 and a quick ratio of 1.44.

Tencent Company Profile

Tencent Holdings Limited is a Chinese multinational technology conglomerate headquartered in Shenzhen, Guangdong. Founded in 1998, the company grew from early instant-messaging products into a diversified internet services group and is listed on the Hong Kong Stock Exchange. Tencent's businesses span consumer-facing applications, digital content, cloud services and financial technology, supported by a broad investment program in global technology and gaming companies.

At the consumer level Tencent operates major social and communication platforms such as QQ and WeChat (Weixin), which combine messaging, social networking, mobile payments and a wide range of mini-programs and services.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.