Macquarie slashes price target on Tencent Music Entertainment Group [TME] – find out why.

Tencent Music Entertainment Group [NYSE: TME] surged by $1.94 during the normal trading session on Tuesday and reaching a high of $29.01 during the day while it closed the day at $28.30. The company report on February 9, 2021 that Tencent Music Entertainment Group Invests in Audio Entertainment Ecosystem to Drive Long-term Growth.

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Tencent Music Entertainment Group (“Tencent Music,” “TME,” or the “Company”) (NYSE: TME), the leading online music entertainment platform in China, has made significant progress in the long-form audio market in China. As part of a broader strategy to build synergies within its music entertainment ecosystem, long-form audio will continue to be a key focus of TME’s strategic growth plan.

Long-form audio includes podcasts, audiobooks, Chinese comedy, audio drama, talk shows, among other types of audio programs. As a relatively new area with low market penetration, long-form audio has significant potential for growth in China.

Tencent Music Entertainment Group stock has also gained 7.93% of its value over the past 7 days. However, TME stock has inclined by 76.99% in the 3 months of the year. Over the past six months meanwhile, it has gained 96.53% and gained 47.09% year-on date.

The market cap for TME stock reached $48.32 billion, with 1.66 billion shares outstanding and 605.81 million shares in the current float. Compared to the average trading volume of 11.64M shares, TME reached a trading volume of 20082810 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Tencent Music Entertainment Group [TME]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for TME shares is $23.23 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on TME stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Macquarie have made an estimate for Tencent Music Entertainment Group shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on January 27, 2021. While these analysts kept the previous recommendation, Oppenheimer raised their target price from $20 to $28. The new note on the price target was released on January 19, 2021, representing the official price target for Tencent Music Entertainment Group stock. Previously, the target price had yet another raise from $17 to $21, while Needham kept a Buy rating on TME stock.

The Average True Range (ATR) for Tencent Music Entertainment Group is set at 1.30, with the Price to Sales ratio for TME stock in the period of the last 12 months amounting to 11.09. The Price to Book ratio for the last quarter was 6.14, with the Price to Cash per share for the same quarter was set at 0.88.

TME stock trade performance evaluation

Tencent Music Entertainment Group [TME] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 7.93. With this latest performance, TME shares gained by 30.41% in over the last four-week period, additionally plugging by 96.53% over the last 6 months – not to mention a rise of 115.21% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for TME stock in for the last two-week period is set at 69.77, with the RSI for the last a single of trading hit 70.36, and the three-weeks RSI is set at 69.91 for Tencent Music Entertainment Group [TME]. The present Moving Average for the last 50 days of trading for this stock 22.23, while it was recorded at 26.85 for the last single week of trading, and 16.49 for the last 200 days.

Tencent Music Entertainment Group [TME]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Tencent Music Entertainment Group [TME] shares currently have an operating margin of +15.45 and a Gross Margin at +33.24. Tencent Music Entertainment Group’s Net Margin is presently recorded at +15.66.

Return on Total Capital for TME is now 9.64, given the latest momentum, and Return on Invested Capital for the company is 9.80. Return on Equity for this stock inclined to 9.81, with Return on Assets sitting at 8.20. When it comes to the capital structure of this company, Tencent Music Entertainment Group [TME] has a Total Debt to Total Equity ratio set at 0.34. Additionally, TME Total Debt to Total Capital is recorded at 0.34, with Total Debt to Total Assets ending up at 0.28. Long-Term Debt to Equity for the company is recorded at 0.18, with the Long-Term Debt to Total Capital now at 0.18.

Reflecting on the efficiency of the workforce at the company, Tencent Music Entertainment Group [TME] managed to generate an average of $159,634 per employee. Receivables Turnover for the company is 12.76 with a Total Asset Turnover recorded at a value of 0.52.Tencent Music Entertainment Group’s liquidity data is similarly interesting compelling, with a Quick Ratio of 3.50 and a Current Ratio set at 3.50.

Earnings per share (EPS) analysis for Tencent Music Entertainment Group [TME] stock

With the latest financial reports released by the company, Tencent Music Entertainment Group posted 0.11/share EPS, while the average EPS was predicted by analysts to be reported at 0.1/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 10.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for TME. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Tencent Music Entertainment Group go to 2.35%.

Tencent Music Entertainment Group [TME]: Insider Ownership positions

There are presently around $15,801 million, or 72.60% of TME stock, in the hands of institutional investors. The top three institutional holders of TME stocks are: CREDIT SUISSE AG/ with ownership of 53,218,044, which is approximately 290.018% of the company’s market cap and around 9.67% of the total institutional ownership; MORGAN STANLEY, holding 48,112,265 shares of the stock with an approximate value of $1.36 billion in TME stocks shares; and BAILLIE GIFFORD & CO, currently with $1.2 billion in TME stock with ownership of nearly -1.107% of the company’s market capitalization.

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Positions in Tencent Music Entertainment Group stocks held by institutional investors increased at the end of March and at the time of the March reporting period, where 145 institutional holders increased their position in Tencent Music Entertainment Group [NYSE:TME] by around 133,959,042 shares. Additionally, 115 investors decreased positions by around 48,929,978 shares, while 36 investors held positions by with 375,458,547 shares. The mentioned changes placed institutional holdings at 558,347,567 shares, according to the latest SEC report filing. TME stock had 59 new institutional investments in for a total of 15,674,535 shares, while 38 institutional investors sold positions of 14,730,201 shares during the same period.

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