Tencent Music Entertainment Group (NYSE:TME) Trading Down 7.5% – Time to Sell?

Tencent Music Entertainment Group (NYSE:TME) shares were down 7.5% on Tuesday . The stock traded as low as $12.12 and last traded at $12.34. Approximately 1,117,933 shares were traded during trading, a decline of 87% from the average daily volume of 8,879,856 shares. The stock had previously closed at $13.34.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the company. Bank of America cut 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. Mizuho cut 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. Daiwa Capital Markets cut shares of Tencent Music Entertainment Group from an “outperform” rating to a “neutral” rating in a report on Tuesday, August 13th. Morgan Stanley lowered shares of Tencent Music Entertainment Group from an “overweight” rating to an “equal weight” rating and cut their price target for the company from $15.00 to $13.00 in a report on Wednesday, September 25th. Finally, Daiwa America lowered shares of Tencent Music Entertainment Group from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, August 13th. Four research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the stock. According to MarketBeat, Tencent Music Entertainment Group has an average rating of “Moderate Buy” and an average target price of $12.67.

Tencent Music Entertainment Group Price Performance

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’s 50 day moving average price is $11.35 and its two-hundred day moving average price is $12.79. The firm has a market capitalization of $21.31 billion, a price-to-earnings ratio of 26.61, a P/E/G ratio of 1.03 and a beta of 0.66.

Tencent Music Entertainment Group (NYSE:TME) last issued its earnings results on Tuesday, August 13th. The company reported $0.15 earnings per share 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 during the quarter, compared to analyst estimates of $1 billion. Analysts anticipate that Tencent Music Entertainment Group will post 0.62 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of TME. Handelsbanken Fonder AB increased its position in Tencent Music Entertainment Group by 2.4% during the third quarter. Handelsbanken Fonder AB now owns 179,636 shares of the company’s stock worth $2,165,000 after buying an additional 4,265 shares during the last quarter. Cetera Investment Advisers grew its holdings in Tencent Music Entertainment Group by 10.8% during the second quarter. Cetera Investment Advisers now owns 84,366 shares of the company’s stock valued at $1,185,000 after purchasing an additional 8,216 shares during the last quarter. Creative Planning raised its position in shares of Tencent Music Entertainment Group by 19.7% in the second quarter. Creative Planning now owns 81,560 shares of the company’s stock valued at $1,146,000 after purchasing an additional 13,421 shares during the period. Driehaus Capital Management LLC lifted its position in Tencent Music Entertainment Group by 37.0% during the 2nd quarter. Driehaus Capital Management LLC now owns 7,129,342 shares of the company’s stock worth $100,167,000 after acquiring an additional 1,925,124 shares during the last quarter. Finally, SIH Partners LLLP acquired a new position in shares of Tencent Music Entertainment Group during the 2nd quarter worth about $282,000. Institutional investors and hedge funds 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.