Tencent Music Entertainment Group (NYSE:TME) Stock Price Up 6.8% – Should You Buy?

Tencent Music Entertainment Group Sponsored ADR (NYSE:TME)’s stock price shot up 6.8% on Monday . The company traded as high as $9.10 and last traded at $9.0450. 4,357,855 shares were traded during mid-day trading, a decline of 51% from the average session volume of 8,889,226 shares. The stock had previously closed at $8.47.

Analyst Ratings Changes

Several analysts recently commented on TME shares. Jefferies Financial Group reaffirmed a “buy” rating and issued a $23.00 price objective on shares of Tencent Music Entertainment Group in a report on Tuesday, March 17th. Daiwa Securities Group restated a “hold” rating and set a $12.00 price target on shares of Tencent Music Entertainment Group in a research note on Wednesday, March 18th. Zacks Research downgraded Tencent Music Entertainment Group from a “hold” rating to a “strong sell” rating in a research note on Friday, April 17th. Benchmark restated a “hold” rating on shares of Tencent Music Entertainment Group in a research note on Wednesday, March 18th. Finally, JPMorgan Chase & Co. cut their price target on Tencent Music Entertainment Group from $12.00 to $10.00 and set a “neutral” rating for the company in a research note on Thursday. Six research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $21.44.

Tencent Music Entertainment Group Stock Up 5.8%

The company has a 50-day moving average price of $10.19 and a 200 day moving average price of $15.07. The firm has a market capitalization of $13.89 billion, a PE ratio of 11.22, a P/E/G ratio of 0.55 and a beta of 0.81. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.09 and a quick ratio of 2.08.

Tencent Music Entertainment Group (NYSE:TME) last posted its quarterly earnings results on Tuesday, March 31st. The company reported $0.11 EPS for the quarter. The company had revenue of $1.15 billion for the quarter. Tencent Music Entertainment Group had a return on equity of 11.20% and a net margin of 26.45%. Analysts forecast that Tencent Music Entertainment Group Sponsored ADR will post 0.9 earnings per share for the current year.

Tencent Music Entertainment Group Increases Dividend

The company also recently declared an annual dividend, which was paid on Thursday, April 23rd. Investors of record on Thursday, April 2nd were issued a $0.24 dividend. The ex-dividend date was Thursday, April 2nd. This is a positive change from Tencent Music Entertainment Group’s previous annual dividend of $0.18. This represents a dividend yield of 262.0%. Tencent Music Entertainment Group’s dividend payout ratio (DPR) is presently 28.75%.

Hedge Funds Weigh In On Tencent Music Entertainment Group

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Allworth Financial LP boosted its position in Tencent Music Entertainment Group by 63.2% during the third quarter. Allworth Financial LP now owns 1,480 shares of the company’s stock valued at $35,000 after purchasing an additional 573 shares in the last quarter. O Shaughnessy Asset Management LLC raised its stake in Tencent Music Entertainment Group by 0.5% in the fourth quarter. O Shaughnessy Asset Management LLC now owns 132,635 shares of the company’s stock valued at $2,325,000 after buying an additional 610 shares during the last quarter. Vise Technologies Inc. raised its stake in Tencent Music Entertainment Group by 5.0% in the fourth quarter. Vise Technologies Inc. now owns 14,648 shares of the company’s stock valued at $257,000 after buying an additional 692 shares during the last quarter. Smartleaf Asset Management LLC raised its stake in Tencent Music Entertainment Group by 61.3% in the fourth quarter. Smartleaf Asset Management LLC now owns 2,123 shares of the company’s stock valued at $37,000 after buying an additional 807 shares during the last quarter. Finally, Cerity Partners LLC raised its stake in shares of Tencent Music Entertainment Group by 1.8% in the fourth quarter. Cerity Partners LLC now owns 52,583 shares of the company’s stock worth $922,000 after purchasing an additional 929 shares during the last quarter. Institutional investors own 24.32% of the company’s stock.

About Tencent Music Entertainment Group

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.