Tencent Music Entertainment Group ADR [TME] is 4.22% higher this YTD. Is it still time to buy?

Tencent Music Entertainment Group ADR [NYSE: TME] loss -0.42% or -0.04 points to close at $9.39 with a heavy trading volume of 9850523 shares. The company report on January 3, 2024 at 4:00 AM that Tencent Music Entertainment Group and Universal Music Group Extend Multi-year Strategic Licensing Agreement.

Tencent Music Entertainment Group (“TME,” or the “Company”) (NYSE: TME and HKEX: 1698), the leading online music and audio entertainment platform in China, and Universal Music Group (“UMG”), the world’s leading music-based entertainment company, today announced the renewal of a multi-year strategic licensing agreement, fortifying their shared commitment to creating value for artists and exceptional experiences for music lovers.

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Under the agreement, TME continues to have access to UMG’s music catalogue for QQ Music, Kugou Music, Kuwo Music, and WeSing. The expansive partnership includes music streaming in Dolby Atmos and high-definition (HD) formats.

It opened the trading session at $9.47, the shares rose to $9.58 and dropped to $9.28, the range by which the price of stock traded the whole day. The daily chart for TME points out that the company has recorded 23.72% gains over the past six months. However, it is still -64.74% lower than its most recent low trading price.

If we look at the average trading volume of 8.42M shares, TME reached to a volume of 9850523 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Tencent Music Entertainment Group ADR [TME]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for TME shares is $9.44 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 1.52. 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.

JP Morgan have made an estimate for Tencent Music Entertainment Group ADR shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on November 16, 2023.

The Average True Range (ATR) for Tencent Music Entertainment Group ADR is set at 0.34, with the Price to Sales ratio for TME stock in the period of the last 12 months amounting to 1.63. The Price to Book ratio for the last quarter was 1.98, with the Price to Cash per share for the same quarter was set at 4.37.

Trading performance analysis for TME stock

Tencent Music Entertainment Group ADR [TME] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 5.86. With this latest performance, TME shares gained by 5.03% in over the last four-week period, additionally plugging by 23.72% over the last 6 months – not to mention a rise of 10.60% 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 64.59, with the RSI for the last a single of trading hit 67.61, and the three-weeks RSI is set at 63.21 for Tencent Music Entertainment Group ADR [TME]. The present Moving Average for the last 50 days of trading for this stock 8.41, while it was recorded at 9.09 for the last single week of trading, and 7.41 for the last 200 days.

Tencent Music Entertainment Group ADR [TME]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Tencent Music Entertainment Group ADR [TME] shares currently have an operating margin of +11.35 and a Gross Margin at +30.09. Tencent Music Entertainment Group ADR’s Net Margin is presently recorded at +12.98.

Return on Total Capital for TME is now 5.71, given the latest momentum, and Return on Invested Capital for the company is 6.65. Return on Equity for this stock inclined to 7.40, with Return on Assets sitting at 5.43. When it comes to the capital structure of this company, Tencent Music Entertainment Group ADR [TME] has a Total Debt to Total Equity ratio set at 12.40. Additionally, TME Total Debt to Total Capital is recorded at 11.03, with Total Debt to Total Assets ending up at 8.90. Long-Term Debt to Equity for the company is recorded at 12.15, with the Long-Term Debt to Total Capital now at 10.81.

Reflecting on the efficiency of the workforce at the company, Tencent Music Entertainment Group ADR [TME] managed to generate an average of $736,590 per employee. Receivables Turnover for the company is 8.32 with a Total Asset Turnover recorded at a value of 0.42.Tencent Music Entertainment Group ADR’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.46 and a Current Ratio set at 2.46.

Tencent Music Entertainment Group ADR [TME]: An earnings per share (EPS) analysis

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 ADR go to 2.31%.

An analysis of Institutional ownership at Tencent Music Entertainment Group ADR [TME]

The top three institutional holders of TME stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2815%. BLACKROCK INC., holding 1.03 billion shares of the stock with an approximate value of $176.59 billion in TME stocks shares; and BERKSHIRE HATHAWAY INC, currently with $156.75 billion in TME stock with ownership which is approximately 5.8325%.