Tencent Music Entertainment Group [NYSE: TME] traded at a low on 04/19/21, posting a -1.16 loss after which it closed the day’ session at $17.83. The company report on April 15, 2021 that Tencent Music Entertainment Group Announces Leadership Changes.
Tencent Music Entertainment Group (“Tencent Music,” “TME,” or the “Company”) (NYSE: TME), the leading online music entertainment platform in China, announced the appointment of Mr. Cussion Kar Shun Pang as TME’s Executive Chairman of the Board of Directors (the “Board”). Mr. Zhu Liang (or “Ross Liang”) has been appointed as the Company’s new Chief Executive Officer (“CEO”) and a member of the Board. Prior to this appointment, Ross served as Vice President of Tencent Holdings Limited (“Tencent”) where he was responsible for overseeing a number of major online platforms including QQ, a leading social communication and entertainment platform in China with 595 million MAU on smart devices, as well as Qzone, a leading social platform that enables users to share their lives and interact with friends and relatives anytime and anywhere. Prior to that role, Ross was the General Manager of QQ Music from 2014 to 2016. As the CEO, Ross’ primary responsibility is to oversee TME’s QQ Music, Kugou Music, Kuwo Music, WeSing and long-form audio business. Mr. James Gordon Mitchell has been appointed as the Chairman of compensation committee of the Board. These changes will go into effect as of April 15, 2021. Mr. Tong Tao Sang (or “Dowson Tong”), TME’s current Chairman of the Board, will resign from the positions of Chairman of the Board, Chairman of compensation committee and all his roles as a director or an officer of affiliates of the Company.
Dowson has served as Chairman of the Board since 2016. He played an integral role in the formation of TME through the strategic merger of Tencent’s QQ Music and WeSing with China Music Corporation, the former holding company of Kugou Music and Kuwo Music. Under Dowson’s leadership, TME embarked on the strategic and cultural transformation that shaped the Company’s journey towards providing superior online music streaming experiences to users, as well as improving the copyright protection environment for the music industry in China. The Board wishes to extend its deepest gratitude to Dowson for his distinguished leadership in driving the transformational growth of TME over the past five years. Dowson’s personal dedication to shaping the Company’s overall strategy within the broader context of promoting the healthy and sustainable development of the music industry has enabled TME to thrive as the leading online music entertainment platform in China.
The results of the trading session contributed to over 20981854 shares changing hands. Over the past one week, the price volatility of Tencent Music Entertainment Group stands at 3.99% while the volatility over the past one month is 9.95%.
The market cap for TME stock reached $30.09 billion, with 1.66 billion shares outstanding and 589.18 million shares in the current float. Compared to the average trading volume of 34.64M shares, TME reached a trading volume of 20981854 in the most recent trading day, which is why market watchdogs consider the stock to be active.
What do top market gurus 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 $29.55 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.
Goldman have made an estimate for Tencent Music Entertainment Group shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on March 24, 2021. While these analysts kept the previous recommendation, China Renaissance raised their target price from $18 to $29. The new note on the price target was released on March 23, 2021, representing the official price target for Tencent Music Entertainment Group stock. On January 19, 2021, analysts increased their price target for TME shares from 20 to 28.
The Average True Range (ATR) for Tencent Music Entertainment Group is set at 1.59, with the Price to Sales ratio for TME stock in the period of the last 12 months amounting to 6.73. The Price to Book ratio for the last quarter was 3.70, with the Price to Cash per share for the same quarter was set at 1.01. Price to Free Cash Flow for TME in the course of the last twelve months was 40.18 with Quick ratio for the last quarter at 3.30.
How has TME stock performed recently?
Tencent Music Entertainment Group [TME] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -1.11. With this latest performance, TME shares dropped by -37.48% in over the last four-week period, additionally plugging by 24.69% over the last 6 months – not to mention a rise of 63.73% 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 32.07, with the RSI for the last a single of trading hit 27.85, and the three-weeks RSI is set at 35.59 for Tencent Music Entertainment Group [TME]. The present Moving Average for the last 50 days of trading for this stock 24.33, while it was recorded at 18.05 for the last single week of trading, and 18.99 for the last 200 days.
Tencent Music Entertainment Group [TME]: Deeper insight into the 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 +12.78 and a Gross Margin at +31.12. Tencent Music Entertainment Group’s Net Margin is presently recorded at +14.25.
Return on Total Capital for TME is now 7.11, given the latest momentum, and Return on Invested Capital for the company is 7.98. Return on Equity for this stock inclined to 8.45, with Return on Assets sitting at 6.69. 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 10.52. Additionally, TME Total Debt to Total Capital is recorded at 9.52, with Total Debt to Total Assets ending up at 8.05. Long-Term Debt to Equity for the company is recorded at 10.32, with the Long-Term Debt to Total Capital now at 9.34.
Receivables Turnover for the company is 10.93 with a Total Asset Turnover recorded at a value of 0.47.Tencent Music Entertainment Group’s liquidity data is similarly interesting compelling, with a Quick Ratio of 3.30 and a Current Ratio set at 3.30.
Earnings analysis for Tencent Music Entertainment Group [TME]
With the latest financial reports released by the company, Tencent Music Entertainment Group posted 0.09/share EPS, while the average EPS was predicted by analysts to be reported at 0.09/share. 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 2.33%.
Insider trade positions for Tencent Music Entertainment Group [TME]
There are presently around $10,100 million, or 71.00% 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 9.76% of the total institutional ownership; MORGAN STANLEY, holding 48,112,265 shares of the stock with an approximate value of $857.84 million in TME stocks shares; and BAILLIE GIFFORD & CO, currently with $758.71 million in TME stock with ownership of nearly -1.107% of the company’s market capitalization.
Positions in Tencent Music Entertainment Group stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 146 institutional holders increased their position in Tencent Music Entertainment Group [NYSE:TME] by around 139,453,839 shares. Additionally, 118 investors decreased positions by around 47,122,460 shares, while 35 investors held positions by with 379,909,735 shares. The mentioned changes placed institutional holdings at 566,486,034 shares, according to the latest SEC report filing. TME stock had 59 new institutional investments in for a total of 15,705,173 shares, while 40 institutional investors sold positions of 14,742,685 shares during the same period.