Tencent (OTCMKTS:TCEHY) Stock Price Down 5.4% Following Weak Earnings

Shares of Tencent Holding Ltd. (OTCMKTS:TCEHY) dropped 5.4% on Wednesday following a weaker than expected earnings announcement. The stock traded as low as $56.00 and last traded at $56.30. Approximately 2,332,118 shares were traded during trading, a decline of 40% from the average session volume of 3,856,038 shares. The stock had previously closed at $59.52.

The technology company reported $1.00 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.08 by ($0.08). Tencent had a return on equity of 19.42% and a net margin of 30.60%.

Analyst Ratings Changes

Separately, Barclays restated an “overweight” rating and issued a $106.00 price objective on shares of Tencent in a research note on Thursday, May 14th. Two research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $106.00.

Tencent Trading Down 5.4%

The company has a current ratio of 1.43, a quick ratio of 1.42 and a debt-to-equity ratio of 0.27. The firm has a market cap of $511.91 billion, a price-to-earnings ratio of 15.73 and a beta of 0.27. The company has a fifty day moving average price of $58.07 and a 200-day moving average price of $62.65.

About Tencent

Tencent Holdings Limited is a Chinese multinational technology conglomerate headquartered in Shenzhen, Guangdong. Founded in 1998, the company grew from early instant-messaging products into a diversified internet services group and is listed on the Hong Kong Stock Exchange. Tencent’s businesses span consumer-facing applications, digital content, cloud services and financial technology, supported by a broad investment program in global technology and gaming companies.

At the consumer level Tencent operates major social and communication platforms such as QQ and WeChat (Weixin), which combine messaging, social networking, mobile payments and a wide range of mini-programs and services.