Tencent (OTCMKTS:TCEHY) Stock Price Passes Above 200-Day Moving Average - Should You Sell?

Key Points

• Tencent's stock price has surpassed its 200-day moving average of $62.13, reaching a high of $69.87 during trading, with shares last priced at $69.44.
• Despite reporting earnings of $0.76 per share, Tencent missed analysts' expectations of $0.88, although revenue of $25 billion exceeded projections.
• The company recently increased its dividend from $0.27 to $0.5102, representing a yield of 0.77%, with a dividend payout ratio of 16.95%.

Tencent Holding Ltd. (OTCMKTS:TCEHY - Get Free Report)'s share price passed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $62.13 and traded as high as $69.87. Tencent shares last traded at $69.44, with a volume of 1,356,873 shares.

Analysts Set New Price Targets

Separately, Barclays reiterated an "overweight" rating on shares of Tencent in a research note on Thursday, May 15th.

Tencent Price Performance

The company has a debt-to-equity ratio of 0.30, a current ratio of 1.30 and a quick ratio of 1.30. The firm has a market cap of $622.44 billion, a P/E ratio of 23.02 and a beta of 0.09. The stock's 50-day simple moving average is $65.62 and its two-hundred day simple moving average is $62.29.

Tencent (OTCMKTS:TCEHY - Get Free Report) last posted its quarterly earnings results on Wednesday, May 14th. The technology company reported $0.76 EPS for the quarter, missing analysts' consensus estimates of $0.88 by ($0.12). Tencent had a return on equity of 19.82% and a net margin of 29.39%. The company had revenue of $25 billion during the quarter, compared to the consensus estimate of $24.19 billion. Equities research analysts forecast that Tencent Holding Ltd. will post 2.74 earnings per share for the current fiscal year.

Tencent Increases Dividend

The business also recently announced a dividend, which was paid on Monday, June 16th. Investors of record on Tuesday, May 20th were paid a $0.5102 dividend. This is a boost from Tencent's previous dividend of $0.27. The ex-dividend date was Monday, May 19th. This represents a yield of 77.0%. Tencent's dividend payout ratio (DPR) is 16.95%.

Tencent Company Profile

Tencent Holdings Limited, an investment holding company, offers value-added services (VAS), online advertising, fintech, and business services in the People's Republic of China and internationally. It operates through VAS, Online Advertising, FinTech and Business Services, and Others segments. The company's consumers business provides communication and services, such as instant messaging and social network; digital content including online games, videos, live streaming, news, music, and literature; fintech services, which includes mobile payment, wealth management, loans, and securities trading; and various tools, such as network security management, browser, navigation, application management, email, etc.