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

Tencent Music Entertainment Group Sponsored ADR (NYSE:TME)’s share price gapped down before the market opened on Friday . The stock had previously closed at $9.15, but opened at $8.77. Tencent Music Entertainment Group shares last traded at $8.9660, with a volume of 3,449,508 shares.

Analysts Set New Price Targets

Several research firms recently weighed in on TME. Jefferies Financial Group reissued a “buy” rating and set a $23.00 price objective on shares of Tencent Music Entertainment Group in a research note on Tuesday, March 17th. Benchmark reissued a “hold” rating on shares of Tencent Music Entertainment Group in a research note on Wednesday, March 18th. Barclays reduced their price objective on shares of Tencent Music Entertainment Group from $28.00 to $20.00 and set an “overweight” rating on the stock in a research note on Thursday, March 19th. Morgan Stanley reissued an “equal weight” rating on shares of Tencent Music Entertainment Group in a research note on Thursday, March 19th. Finally, JPMorgan Chase & Co. reduced their price objective on shares of Tencent Music Entertainment Group from $12.00 to $10.00 and set a “neutral” rating on the stock in a research note on Thursday, May 14th. Six equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $21.44.

Tencent Music Entertainment Group Stock Performance

The company has a debt-to-equity ratio of 0.06, a current ratio of 2.09 and a quick ratio of 2.08. The stock’s 50 day simple moving average is $9.82 and its two-hundred day simple moving average is $14.69. The stock has a market cap of $13.73 billion, a P/E ratio of 11.08, a price-to-earnings-growth ratio of 0.60 and a beta of 0.81.

Tencent Music Entertainment Group (NYSE:TME) last announced its quarterly earnings results on Tuesday, March 31st. The company reported $0.11 earnings per share for the quarter. Tencent Music Entertainment Group had a net margin of 26.45% and a return on equity of 11.20%. The firm had revenue of $1.15 billion for the quarter. As a group, research analysts forecast that Tencent Music Entertainment Group Sponsored ADR will post 0.9 EPS for the current year.

Tencent Music Entertainment Group Increases Dividend

The business also recently declared an annual dividend, which was paid on Thursday, April 23rd. Shareholders of record on Thursday, April 2nd were paid a $0.24 dividend. The ex-dividend date of this dividend was Thursday, April 2nd. This is an increase from Tencent Music Entertainment Group’s previous annual dividend of $0.18. This represents a yield of 262.0%. Tencent Music Entertainment Group’s payout ratio is presently 28.75%.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. Robeco Institutional Asset Management B.V. raised its holdings in shares of Tencent Music Entertainment Group by 7.3% in the fourth quarter. Robeco Institutional Asset Management B.V. now owns 5,706,740 shares of the company’s stock valued at $100,039,000 after purchasing an additional 387,109 shares during the last quarter. SG Americas Securities LLC raised its holdings in shares of Tencent Music Entertainment Group by 85.7% in the fourth quarter. SG Americas Securities LLC now owns 542,198 shares of the company’s stock valued at $9,505,000 after purchasing an additional 250,261 shares during the last quarter. Green Court Capital Management Ltd raised its holdings in shares of Tencent Music Entertainment Group by 93.1% in the third quarter. Green Court Capital Management Ltd now owns 1,039,078 shares of the company’s stock valued at $24,252,000 after purchasing an additional 501,078 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank raised its holdings in shares of Tencent Music Entertainment Group by 414.3% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 1,130,608 shares of the company’s stock valued at $19,820,000 after purchasing an additional 910,767 shares during the last quarter. Finally, Vanguard Group Inc. raised its holdings in shares of Tencent Music Entertainment Group by 1.4% in the fourth quarter. Vanguard Group Inc. now owns 21,455,738 shares of the company’s stock valued at $376,119,000 after purchasing an additional 293,385 shares during the last quarter. Institutional investors own 24.32% of the company’s stock.

Tencent Music Entertainment Group Company Profile

Tencent Music Entertainment Group (NYSE: TME) is a China-based digital music and audio entertainment platform that operates a portfolio of leading music streaming and social entertainment services. Its core consumer-facing products include streaming apps, online karaoke (KTV) services and live music and entertainment broadcasts. The company monetizes its content through a mix of subscriptions, digital music sales, in-app purchases, virtual gifting, advertising and licensing arrangements with rights holders.

The company traces its roots to the consolidation of Tencent’s music assets and was established in the mid-2010s to unify several prominent music properties under a single operating entity.