Tencent Music Entertainment Group (NYSE:TME) Shares Gap Down – Should You Sell?

Shares of Tencent Music Entertainment Group (NYSE:TME) gapped down before the market opened on Thursday . The stock had previously closed at $12.13, but opened at $11.76. Tencent Music Entertainment Group shares last traded at $11.64, with a volume of 174,944 shares traded.

Analysts Set New Price Targets

Several research firms have recently commented on TME. Bank of America decreased their target price on Tencent Music Entertainment Group from $18.00 to $15.00 and set a “buy” rating on the stock in a research report on Wednesday, August 14th. Daiwa Capital Markets cut Tencent Music Entertainment Group from an “outperform” rating to a “neutral” rating in a research report on Tuesday, August 13th. Benchmark reduced their target price on shares of Tencent Music Entertainment Group from $19.00 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 cut their price objective on shares of Tencent Music Entertainment Group from $17.00 to $16.00 and set an “outperform” rating for the company in a report on Wednesday, August 14th. Four analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $12.67.

Tencent Music Entertainment Group Stock Performance

The company has a debt-to-equity ratio of 0.09, a quick ratio of 2.34 and a current ratio of 2.34. The stock has a market cap of $20.39 billion, a price-to-earnings ratio of 25.83, a P/E/G ratio of 0.95 and a beta of 0.66. The stock has a fifty day simple moving average of $11.16 and a two-hundred day simple moving average of $12.85.

Tencent Music Entertainment Group (NYSE:TME) last released its earnings results on Tuesday, August 13th. The company reported $0.15 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.16 by ($0.01). The business had revenue of $985.00 million during the quarter, compared to the consensus estimate of $1 billion. Tencent Music Entertainment Group had a net margin of 20.35% and a return on equity of 10.11%. Analysts expect that Tencent Music Entertainment Group will post 0.62 EPS for the current fiscal year.

Hedge Funds Weigh In On Tencent Music Entertainment Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. SageView Advisory Group LLC bought a new position in shares of Tencent Music Entertainment Group in the 4th quarter valued at $90,000. Banque Cantonale Vaudoise raised its position in Tencent Music Entertainment Group by 1,027.8% in the first quarter. Banque Cantonale Vaudoise now owns 202,999 shares of the company’s stock valued at $2,271,000 after purchasing an additional 185,000 shares during the last quarter. Ballentine Partners LLC boosted its stake in shares of Tencent Music Entertainment Group by 44.2% during the first quarter. Ballentine Partners LLC now owns 21,816 shares of the company’s stock valued at $244,000 after purchasing an additional 6,684 shares in the last quarter. TB Alternative Assets Ltd. bought a new stake in shares of Tencent Music Entertainment Group during the first quarter worth about $1,203,000. Finally, MEAG MUNICH ERGO Kapitalanlagegesellschaft mbH acquired a new position in shares of Tencent Music Entertainment Group in the first quarter valued at approximately $481,000. 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.