Tencent Music Entertainment Group (NYSE:TME) Shares Up 6.8% – Still a Buy?

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

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on TME. Morgan Stanley reaffirmed an “equal weight” rating on shares of Tencent Music Entertainment Group in a report on Thursday, March 19th. Barclays dropped their price objective on Tencent Music Entertainment Group from $28.00 to $20.00 and set an “overweight” rating for the company in a research report on Thursday, March 19th. Zacks Research cut Tencent Music Entertainment Group from a “hold” rating to a “strong sell” rating in a research report on Friday, April 17th. Jefferies Financial Group reissued a “buy” rating and set a $23.00 target price on shares of Tencent Music Entertainment Group in a research note on Tuesday, March 17th. Finally, Daiwa Securities Group reissued a “hold” rating and issued a $12.00 target price on shares of Tencent Music Entertainment Group in a report on Wednesday, March 18th. Six 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. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $21.44.

Tencent Music Entertainment Group Stock Up 0.9%

The company has a market capitalization of $14.16 billion, a price-to-earnings ratio of 11.43, a P/E/G ratio of 0.59 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. The firm’s fifty day moving average price is $10.01 and its 200-day moving average price is $14.87.

Tencent Music Entertainment Group (NYSE:TME) last issued its quarterly earnings data on Tuesday, March 31st. The company reported $0.11 earnings per share for the quarter. Tencent Music Entertainment Group had a return on equity of 11.20% and a net margin of 26.45%.The business had revenue of $1.15 billion for the quarter. Sell-side analysts expect that Tencent Music Entertainment Group Sponsored ADR will post 0.9 earnings per share for the current fiscal year.

Tencent Music Entertainment Group Increases Dividend

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

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Smartleaf Asset Management LLC bought a new stake in Tencent Music Entertainment Group during the 3rd quarter worth approximately $31,000. Allworth Financial LP increased 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 valued at $35,000 after acquiring an additional 573 shares during the period. Caitong International Asset Management Co. Ltd raised its stake in shares of Tencent Music Entertainment Group by 5,777.1% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 2,057 shares of the company’s stock valued at $36,000 after acquiring an additional 2,022 shares during the last quarter. Kestra Advisory Services LLC acquired a new position in shares of Tencent Music Entertainment Group during the fourth quarter worth $46,000. Finally, Jones Financial Companies Lllp grew its stake in shares of Tencent Music Entertainment Group by 137.4% in the third quarter. Jones Financial Companies Lllp now owns 2,414 shares of the company’s stock worth $57,000 after purchasing an additional 1,397 shares during the last quarter. Institutional investors own 24.32% of the company’s stock.

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.