Tencent Music Entertainment Group (NYSE:TME) Shares Gap Down – What’s Next?

Tencent Music Entertainment Group (NYSE:TME)’s share price gapped down before the market opened on Wednesday . The stock had previously closed at $12.63, but opened at $11.99. Tencent Music Entertainment Group shares last traded at $12.28, with a volume of 1,866,169 shares trading hands.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on TME shares. Morgan Stanley downgraded shares of Tencent Music Entertainment Group from an “overweight” rating to an “equal weight” rating and lowered their price objective for the stock from $15.00 to $13.00 in a research note on Wednesday, September 25th. Bank of America lowered their price target on 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. Benchmark cut their price objective on Tencent Music Entertainment Group from $19.00 to $15.00 and set a “buy” rating on the stock in a report on Wednesday, August 14th. Mizuho decreased their target price on 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. Finally, Daiwa America downgraded shares of Tencent Music Entertainment Group from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 13th. Four investment analysts have rated the stock with a hold rating and nine have given a buy rating to the company. According to MarketBeat, Tencent Music Entertainment Group currently has a consensus rating of “Moderate Buy” and a consensus price target of $12.67.

Tencent Music Entertainment Group Stock Performance

The stock has a market capitalization of $21.04 billion, a price-to-earnings ratio of 27.46, a PEG ratio of 1.01 and a beta of 0.66. 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 firm’s 50 day moving average is $11.31 and its 200-day moving average is $12.81.

Tencent Music Entertainment Group (NYSE:TME) last posted its earnings results on Tuesday, August 13th. The company reported $0.15 earnings per share (EPS) for the quarter, missing the consensus estimate 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 for the quarter, compared to analysts’ expectations of $1 billion. Analysts forecast that Tencent Music Entertainment Group will post 0.62 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. QRG Capital Management Inc. increased its holdings in Tencent Music Entertainment Group by 5.7% in the 2nd quarter. QRG Capital Management Inc. now owns 15,843 shares of the company’s stock worth $223,000 after acquiring an additional 860 shares in the last quarter. DekaBank Deutsche Girozentrale raised its position in shares of Tencent Music Entertainment Group by 0.9% during the 2nd quarter. DekaBank Deutsche Girozentrale now owns 101,442 shares of the company’s stock worth $1,403,000 after purchasing an additional 922 shares during the last quarter. Tobam lifted its stake in Tencent Music Entertainment Group by 37.7% in the 2nd quarter. Tobam now owns 3,498 shares of the company’s stock valued at $49,000 after buying an additional 957 shares in the last quarter. Atomi Financial Group Inc. boosted its holdings in Tencent Music Entertainment Group by 6.1% in the 2nd quarter. Atomi Financial Group Inc. now owns 26,996 shares of the company’s stock worth $379,000 after buying an additional 1,561 shares during the last quarter. Finally, Ashton Thomas Private Wealth LLC purchased a new stake in Tencent Music Entertainment Group during the 2nd quarter worth approximately $37,000. 24.32% of the stock is owned by institutional investors and hedge funds.

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.