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

Tencent Music Entertainment Group Sponsored ADR (NYSE:TME) shares gapped down prior to trading 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 trading hands.

Analyst Ratings Changes

TME has been the subject of several research reports. Zacks Research upgraded shares of Tencent Music Entertainment Group from a “strong sell” rating to a “hold” rating in a research report on Tuesday. Jefferies Financial Group restated a “buy” rating and issued a $23.00 price objective on shares of Tencent Music Entertainment Group in a research report on Tuesday, March 17th. Morgan Stanley restated an “equal weight” rating on shares of Tencent Music Entertainment Group in a research report on Thursday, March 19th. Barclays lowered their price objective on shares of Tencent Music Entertainment Group from $28.00 to $20.00 and set an “overweight” rating for the company in a research report on Thursday, March 19th. Finally, UBS Group restated a “neutral” rating and issued a $13.00 price objective (down from $26.00) on shares of Tencent Music Entertainment Group in a research report on Wednesday, March 18th. Six analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $21.44.

Tencent Music Entertainment Group Stock Down 3.1%

The company 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. The company has a current ratio of 2.09, a quick ratio of 2.08 and a debt-to-equity ratio of 0.06. The firm’s 50 day moving average price is $9.82 and its 200-day moving average price is $14.69.

Tencent Music Entertainment Group (NYSE:TME) last released its earnings results on Tuesday, March 31st. The company reported $0.11 EPS for the quarter. The firm had revenue of $1.15 billion during the quarter. Tencent Music Entertainment Group had a net margin of 26.45% and a return on equity of 11.20%. As a group, equities research analysts expect 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. Stockholders of record on Thursday, April 2nd were given a $0.24 dividend. The ex-dividend date was Thursday, April 2nd. This represents a dividend yield of 262.0%. This is an increase from Tencent Music Entertainment Group’s previous annual dividend of $0.18. Tencent Music Entertainment Group’s dividend payout ratio is 28.75%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in TME. Royal Bank of Canada boosted its position in shares of Tencent Music Entertainment Group by 9.0% in the 1st quarter. Royal Bank of Canada now owns 144,475 shares of the company’s stock worth $2,082,000 after purchasing an additional 11,979 shares during the last quarter. AQR Capital Management LLC boosted its stake in Tencent Music Entertainment Group by 107.5% during the 1st quarter. AQR Capital Management LLC now owns 85,450 shares of the company’s stock worth $1,231,000 after acquiring an additional 44,265 shares during the last quarter. Jones Financial Companies Lllp bought a new position in Tencent Music Entertainment Group during the 1st quarter worth approximately $985,000. Acadian Asset Management LLC boosted its stake in Tencent Music Entertainment Group by 385,900.0% during the 1st quarter. Acadian Asset Management LLC now owns 50,180 shares of the company’s stock worth $722,000 after acquiring an additional 50,167 shares during the last quarter. Finally, EverSource Wealth Advisors LLC boosted its stake in Tencent Music Entertainment Group by 83.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,005 shares of the company’s stock worth $59,000 after acquiring an additional 1,363 shares during the last quarter. 24.32% of the stock is currently owned by institutional investors.

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.