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

Tencent Music Entertainment Group (NYSE:TME) gapped down before the market opened on Tuesday . The stock had previously closed at $11.55, but opened at $10.78. Tencent Music Entertainment Group shares last traded at $10.76, with a volume of 2,601,658 shares trading hands.

Analyst Ratings Changes

Several equities research analysts recently issued reports on TME shares. Bank of America reduced their target price on shares of Tencent Music Entertainment Group from $18.00 to $15.00 and set a “buy” rating for the company in a report on Wednesday, August 14th. Benchmark reduced their price target on shares of 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. Daiwa America cut Tencent Music Entertainment Group from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 13th. Morgan Stanley cut 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, Barclays began coverage on Tencent Music Entertainment Group in a report on Wednesday, November 6th. They set an “overweight” rating and a $16.00 price objective on the stock. Four equities research analysts have rated the stock with a hold rating and eleven have issued a buy rating to the stock. According to MarketBeat, Tencent Music Entertainment Group currently has an average rating of “Moderate Buy” and a consensus target price of $13.03.

Tencent Music Entertainment Group Stock Performance

The company has a market capitalization of $18.31 billion, a PE ratio of 19.76, a PEG ratio of 0.81 and a beta of 0.67. 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 business has a 50 day simple moving average of $11.42 and a 200 day simple moving average of $12.84.

Tencent Music Entertainment Group (NYSE:TME) last posted its quarterly 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 company had revenue of $985.00 million during the quarter, compared to analysts’ expectations of $1 billion. Tencent Music Entertainment Group had a return on equity of 10.67% and a net margin of 21.53%. Equities research analysts predict that Tencent Music Entertainment Group will post 0.63 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in Tencent Music Entertainment Group by 287.4% in the third quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 4,845,013 shares of the company’s stock valued at $58,382,000 after acquiring an additional 3,594,383 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank increased its holdings in shares of Tencent Music Entertainment Group by 6.9% during the 3rd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 456,906 shares of the company’s stock valued at $5,506,000 after purchasing an additional 29,512 shares in the last quarter. Townsquare Capital LLC lifted its stake in shares of Tencent Music Entertainment Group by 20.9% in the 3rd quarter. Townsquare Capital LLC now owns 47,587 shares of the company’s stock valued at $573,000 after purchasing an additional 8,231 shares during the period. BNP Paribas Financial Markets lifted its stake in shares of Tencent Music Entertainment Group by 33.6% in the 3rd quarter. BNP Paribas Financial Markets now owns 1,911,048 shares of the company’s stock valued at $23,028,000 after purchasing an additional 480,504 shares during the period. Finally, Quantbot Technologies LP purchased a new stake in Tencent Music Entertainment Group during the third quarter worth $2,464,000. 24.32% of the stock is currently owned by institutional investors and hedge funds.

Tencent Music Entertainment Group Company Profile

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.