Analyst Expect Big Moves From Tencent Music Entertainment Group (NYSE: TME)


    Baillie Gifford & Co. recently announced the acquisition of new stake in Tencent Music Entertainment Group (NYSE:TME). The institutional investor has increased its shareholding in the Communication Services company by 1.36% to 20.54 million shares with purchase of 0.27 million shares. This fresh investment now brings its stake to 3.06% valued currently at $331.45 million. In addition, Wellington Management Co. LLP raised its holdings by 4.59 million to 18.31 million shares. And Vontobel Asset Management, Inc. has lifted its position by 29.19% or 3.96 million shares – to 17.53 million shares.

    With over 7.05 million Tencent Music Entertainment Group (TME) shares trading Tuesday and a closing price of $15.93 on the day, the dollar volume was approximately $112.32 million. The shares have shown a positive weekly performance of 1.66% and its price on 09/01/20 gained nearly 1.92%. Currently, there are 1.65B common shares owned by the public and among those 635.93M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 24 analysts who have offered their price forecasts for TME have a consensus price objective of $17.74. The analysts have set the share’s price value over the next 12 months at a high of $20.47 and a low of $14.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Tencent Music Entertainment Group stock is 1.90 for the next 12 months. The average price target is 11.45% above its last price level and an upside to the estimated low will see the stock lose -13.79% over that period. But an upside of 22.18% will see the stock hit the forecast high price target while mean target price for the stock is $18.00.

    The top 3 mutual fund holders in Tencent Music Entertainment Group are Vanguard Total International Stoc, Vanguard Emerging Markets Stock I, and Virtus Vontobel Emerging Markets. Vanguard Total International Stoc owns 7.14 million shares of the company’s stock, all valued at over $115.3 million. The company sold 7730.0 shares recently to bring their total holdings to about 1.07% of the shares outstanding. Vanguard Emerging Markets Stock I sold 8022.0 shares to see its total holdings shrink to 6.24 million shares valued at over $100.76 million and representing 0.93% of the shares outstanding. Virtus Vontobel Emerging Markets bought 0.74 million shares to bring its total holdings to over 6.1 million shares at a value of $98.44 million. Virtus Vontobel Emerging Markets now owns shares totaling to 0.91% of the shares outstanding.

    Shares of Tencent Music Entertainment Group (NYSE: TME) opened at $15.80, up $0.17 from a prior closing price of $15.63. However, the script later closed the day at $15.93, up 1.92%. The company’s stock has a 5-day price change of 1.66% and 23.49% over the past three months. TME shares are trading 35.69% year to date (YTD), with the 12-month market performance up to 23.97% higher. It has a 12-month low price of $9.22 and touched a high of $17.97 over the same period. Currently, 7.05 million shares have been traded, compared to an average intraday trading volume of 10.52 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 3.61%, 3.64%, and 23.87% respectively.

    Institutional ownership of Tencent Music Entertainment Group (NYSE: TME) shares accounts for 60.30% of the company’s 1.65B shares outstanding. Mutual fund holders own 18.91%, while other institutional holders and individual stakeholders account for 41.99% and — respectively.

    It has a market capitalization of $26.86B. The stock’s trailing 12-month PE ratio is 47.27, while the earnings-per-share (ttm) stands at $0.34. The company has a PEG of 20.37 and a Quick Ratio of 3.00 with the debt-to-equity ratio at 0.00. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.42% over the week and 3.56% over the month.

    Analysts forecast that Tencent Music Entertainment Group (TME) will achieve an EPS of $0.1 for the current quarter, $0.11 for the next quarter and $0.55 for 2021. The lowest estimate earnings-per-share for the quarter is $0.09 while analysts give the company a high EPS estimate of $0.12. Comparatively, EPS for the current quarter was $0.1 a year ago. Earnings per share for the fiscal year are expected to increase by 112.30%, and 33.01% over the next financial year.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 24 brokerage firm advisors rate Tencent Music Entertainment Group (TME) as a “Strong Buy” at a consensus score of 1.90. Specifically, 18 Wall Street analysts polled rate the stock as a buy, while 5 of the 24 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the TME, a number of firms have released research notes about the stock. Oppenheimer stated their Outperform rating for the stock in a research note on August 14, 2020, with the firm’s price target at $20. UBS coverage for the Tencent Music Entertainment Group (TME) stock in a research note released on June 30, 2020 offered a Buy rating with a price target of $17. Morgan Stanley was of a view on March 12, 2020 that the stock is Overweight, while Oppenheimer gave the stock Perform rating on February 19, 2020, issuing a price target of. KeyBanc Capital Markets on their part issued Sector Weight rating on February 18, 2020.


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