Tencent Music Entertainment Group (NYSE:TME) Shares Gap Down – Here’s Why

Tencent Music Entertainment Group (NYSE:TME) gapped down prior to trading on Tuesday . The stock had previously closed at $11.55, but opened at $10.78. Tencent Music Entertainment Group shares last traded at $10.76, with a volume of 2,601,658 shares traded.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on TME shares. Morgan Stanley lowered shares of Tencent Music Entertainment Group from an “overweight” rating to an “equal weight” rating and reduced their price target for the stock from $15.00 to $13.00 in a research report on Wednesday, September 25th. Barclays started coverage on shares of Tencent Music Entertainment Group in a research report on Wednesday, November 6th. They issued an “overweight” rating and a $16.00 price target for the company. Bank of America reduced their price target on shares of Tencent Music Entertainment Group from $18.00 to $15.00 and set a “buy” rating for the company in a research report on Wednesday, August 14th. Daiwa America lowered shares of Tencent Music Entertainment Group from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, August 13th. Finally, Mizuho dropped their price objective on Tencent Music Entertainment Group from $17.00 to $16.00 and set an “outperform” rating on the stock in a report on Wednesday, August 14th. Four equities research analysts have rated the stock with a hold rating and eleven have issued a buy rating to the stock. According to data from MarketBeat.com, Tencent Music Entertainment Group has a consensus rating of “Moderate Buy” and a consensus price target of $13.03.

Tencent Music Entertainment Group Stock Performance

The company has a market capitalization of $18.67 billion, a P/E ratio of 21.36, a PEG ratio of 0.84 and a beta of 0.67. The company has a quick ratio of 2.34, a current ratio of 2.34 and a debt-to-equity ratio of 0.09. The stock has a fifty day simple moving average of $11.41 and a 200-day simple moving average of $12.85.

Tencent Music Entertainment Group (NYSE:TME) last announced its quarterly earnings data on Tuesday, August 13th. The company reported $0.15 EPS for the quarter, missing analysts’ consensus estimates of $0.16 by ($0.01). Tencent Music Entertainment Group had a return on equity of 10.11% and a net margin of 20.35%. The firm had revenue of $985.00 million during the quarter, compared to analyst estimates of $1 billion. Equities analysts forecast that Tencent Music Entertainment Group will post 0.63 EPS for the current year.

Hedge Funds Weigh In On Tencent Music Entertainment Group

Institutional investors and hedge funds have recently modified their holdings of the business. Ninety One UK Ltd bought a new stake in Tencent Music Entertainment Group in the 2nd quarter valued at $122,775,000. Cantillon Capital Management LLC boosted its stake in shares of Tencent Music Entertainment Group by 39.9% during the third quarter. Cantillon Capital Management LLC now owns 18,456,585 shares of the company’s stock valued at $222,402,000 after purchasing an additional 5,265,783 shares in the last quarter. Acadian Asset Management LLC boosted its stake in shares of Tencent Music Entertainment Group by 18,902.2% during the second quarter. Acadian Asset Management LLC now owns 4,468,752 shares of the company’s stock valued at $62,765,000 after purchasing an additional 4,445,235 shares in the last quarter. Mawer Investment Management Ltd. boosted its stake in shares of Tencent Music Entertainment Group by 1,131.8% during the third quarter. Mawer Investment Management Ltd. now owns 4,547,836 shares of the company’s stock valued at $54,801,000 after purchasing an additional 4,178,636 shares in the last quarter. Finally, Bamco Inc. NY bought a new position in shares of Tencent Music Entertainment Group during the first quarter worth about $40,857,000. 24.32% of the stock is currently owned by institutional investors and hedge funds.

Tencent Music Entertainment Group Company Profile

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.