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

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

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on TME. Benchmark reiterated a “hold” rating on shares of Tencent Music Entertainment Group in a report on Wednesday, March 18th. Zacks Research lowered shares of Tencent Music Entertainment Group from a “hold” rating to a “strong sell” rating in a report on Friday, April 17th. UBS Group restated a “neutral” rating and set a $13.00 price target (down from $26.00) on shares of Tencent Music Entertainment Group in a report on Wednesday, March 18th. Jefferies Financial Group restated a “buy” rating and set a $23.00 price target on shares of Tencent Music Entertainment Group in a report on Tuesday, March 17th. Finally, Daiwa Securities Group restated a “hold” rating and set a $12.00 price target on shares of Tencent Music Entertainment Group in a report on Wednesday, March 18th. Six equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Tencent Music Entertainment Group currently has a consensus rating of “Hold” and a consensus price target of $21.44.

Tencent Music Entertainment Group Trading Up 5.8%

The company has a market cap of $13.89 billion, a price-to-earnings ratio of 11.22, a P/E/G ratio of 0.55 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 $10.19 and its 200 day moving average price is $15.07.

Tencent Music Entertainment Group (NYSE:TME) last posted its quarterly earnings data on Tuesday, March 31st. The company reported $0.11 earnings per share (EPS) for the quarter. The firm had revenue of $1.15 billion for 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 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 disclosed an annual dividend, which was paid on Thursday, April 23rd. Stockholders of record on Thursday, April 2nd were paid a dividend of $0.24 per share. This represents a dividend yield of 262.0%. This is a boost from Tencent Music Entertainment Group’s previous annual dividend of $0.18. The ex-dividend date of this dividend was Thursday, April 2nd. Tencent Music Entertainment Group’s payout ratio is currently 28.75%.

Hedge Funds Weigh In On Tencent Music Entertainment Group

Several institutional investors and hedge funds have recently modified their holdings of TME. Smartleaf Asset Management LLC purchased a new position in Tencent Music Entertainment Group in the 3rd quarter worth about $31,000. Allworth Financial LP raised its position in Tencent Music Entertainment Group by 63.2% in the 3rd quarter. Allworth Financial LP now owns 1,480 shares of the company’s stock worth $35,000 after buying an additional 573 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its position in Tencent Music Entertainment Group by 5,777.1% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 2,057 shares of the company’s stock worth $36,000 after buying an additional 2,022 shares during the last quarter. Jones Financial Companies Lllp raised its position in Tencent Music Entertainment Group by 137.4% in the 3rd quarter. Jones Financial Companies Lllp now owns 2,414 shares of the company’s stock worth $57,000 after buying an additional 1,397 shares during the last quarter. Finally, Kestra Advisory Services LLC purchased a new position in Tencent Music Entertainment Group in the 4th quarter worth about $46,000. 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.