Tencent Music Entertainment Group (NYSE:TME) Shares Up 5.9% – Still a Buy?

Tencent Music Entertainment Group (NYSE:TME) shares rose 5.9% on Friday . The stock traded as high as $13.35 and last traded at $13.27. Approximately 5,051,561 shares traded hands during mid-day trading, a decline of 43% from the average daily volume of 8,892,438 shares. The stock had previously closed at $12.53.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on TME. Benchmark cut their target price on shares of Tencent Music Entertainment Group from $19.00 to $15.00 and set a “buy” rating for the company in a research note on Wednesday, August 14th. Daiwa Capital Markets downgraded shares of Tencent Music Entertainment Group from an “outperform” rating to a “neutral” rating in a research report on Tuesday, August 13th. Daiwa America downgraded Tencent Music Entertainment Group from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, August 13th. Morgan Stanley cut Tencent Music Entertainment Group from an “overweight” rating to an “equal weight” rating and dropped their price target for the stock from $15.00 to $13.00 in a report on Wednesday, September 25th. Finally, Mizuho reduced their price target on Tencent Music Entertainment Group from $17.00 to $16.00 and set an “outperform” rating for the company in a research note on Wednesday, August 14th. Four equities research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $12.67.

Tencent Music Entertainment Group Stock Up 3.0 %

The company has a market cap of $22.15 billion, a P/E ratio of 26.38, a PEG ratio of 0.93 and a beta of 0.66. The stock has a 50-day moving average of $11.26 and a 200 day moving average of $12.81. The company has a debt-to-equity ratio of 0.09, a current ratio of 2.34 and a quick ratio of 2.34.

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 the consensus estimate of $0.16 by ($0.01). The firm had revenue of $985.00 million for the quarter, compared to analyst estimates of $1 billion. Tencent Music Entertainment Group had a return on equity of 10.11% and a net margin of 20.35%. Research analysts anticipate that Tencent Music Entertainment Group will post 0.62 earnings per share for the current year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Mirae Asset Global Investments Co. Ltd. lifted its holdings in Tencent Music Entertainment Group by 238.1% during the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 1,805,479 shares of the company’s stock worth $19,847,000 after buying an additional 1,271,426 shares during the period. Capital Wealth Planning LLC bought a new position in shares of Tencent Music Entertainment Group in the 1st quarter worth about $2,588,000. Progeny 3 Inc. bought a new position in shares of Tencent Music Entertainment Group during the 2nd quarter worth approximately $11,436,000. Swedbank AB bought a new stake in Tencent Music Entertainment Group in the first quarter valued at $1,980,000. Finally, Banque Cantonale Vaudoise raised its holdings in shares of Tencent Music Entertainment Group by 1,027.8% during the first quarter. Banque Cantonale Vaudoise now owns 202,999 shares of the company’s stock valued at $2,271,000 after purchasing an additional 185,000 shares during the period. Institutional investors 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.