Tencent Music Entertainment Group Target of Unusually High Options Trading (NYSE:TME)

Tencent Music Entertainment Group (NYSE:TME) was the target of some unusual options trading activity on Tuesday. Stock investors purchased 24,998 call options on the company. This is an increase of 787% compared to the average volume of 2,819 call options.

Tencent Music Entertainment Group Stock Performance

TME traded up $1.43 during midday trading on Tuesday, hitting $11.61. 10,170,223 shares of the company traded hands, compared to its average volume of 8,456,926. The company has a quick ratio of 2.34, a current ratio of 2.34 and a debt-to-equity ratio of 0.09. The firm has a market capitalization of $19.92 billion, a PE ratio of 24.63, a price-to-earnings-growth ratio of 0.70 and a beta of 0.65. The company’s 50-day moving average is $11.72 and its 200 day moving average is $12.66. Tencent Music Entertainment Group has a 52 week low of $6.09 and a 52 week high of $15.77.

Tencent Music Entertainment Group (NYSE:TME) last released its quarterly earnings results on Tuesday, August 13th. The company reported $0.15 EPS for the quarter, missing the consensus estimate of $0.16 by ($0.01). Tencent Music Entertainment Group had a net margin of 20.35% and a return on equity of 10.11%. The business had revenue of $985.00 million for the quarter, compared to analysts’ expectations of $1 billion. On average, research analysts expect that Tencent Music Entertainment Group will post 0.63 EPS for the current year.

Institutional Investors Weigh In On Tencent Music Entertainment Group

Several hedge funds and other institutional investors have recently made changes to their positions in TME. QRG Capital Management Inc. increased its holdings in Tencent Music Entertainment Group by 5.7% in the 2nd quarter. QRG Capital Management Inc. now owns 15,843 shares of the company’s stock worth $223,000 after acquiring an additional 860 shares in the last quarter. DekaBank Deutsche Girozentrale boosted its position in shares of Tencent Music Entertainment Group by 0.9% during the 2nd quarter. DekaBank Deutsche Girozentrale now owns 101,442 shares of the company’s stock valued at $1,403,000 after acquiring an additional 922 shares during the last quarter. Tobam boosted its position in shares of Tencent Music Entertainment Group by 37.7% during the 2nd quarter. Tobam now owns 3,498 shares of the company’s stock valued at $49,000 after acquiring an additional 957 shares during the last quarter. Atomi Financial Group Inc. boosted its position in shares of Tencent Music Entertainment Group by 6.1% during the 2nd quarter. Atomi Financial Group Inc. now owns 26,996 shares of the company’s stock valued at $379,000 after acquiring an additional 1,561 shares during the last quarter. Finally, Parallel Advisors LLC boosted its position in shares of Tencent Music Entertainment Group by 27.1% during the 4th quarter. Parallel Advisors LLC now owns 10,927 shares of the company’s stock valued at $98,000 after acquiring an additional 2,328 shares during the last quarter. Hedge funds and other institutional investors own 24.32% of the company’s stock.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the stock. Daiwa America downgraded shares of Tencent Music Entertainment Group from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, August 13th. Benchmark reduced their target price on shares of Tencent Music Entertainment Group from $19.00 to $15.00 and set a “buy” rating on the stock in a research report on Wednesday, August 14th. Daiwa Capital Markets downgraded shares of Tencent Music Entertainment Group from an “outperform” rating to a “neutral” rating in a research report on Tuesday, August 13th. Bank of America reduced their target price on shares of Tencent Music Entertainment Group from $18.00 to $15.00 and set a “buy” rating on the stock in a research report on Wednesday, August 14th. Finally, Mizuho reduced their target price on shares of Tencent Music Entertainment Group from $17.00 to $16.00 and set an “outperform” rating on the stock in a research report on Wednesday, August 14th. Three research analysts have rated the stock with a hold rating and ten have given a buy rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $12.72.

About Tencent Music Entertainment Group

Tencent Music Entertainment Group operates online music entertainment platforms to provide music streaming, online karaoke, and live streaming services in the People's Republic of China. It offers QQ Music, Kugou Music, and Kuwo Music that enable users to discover music in personalized ways; long-form audio content, including audiobooks, podcasts and talk shows, as well as music-oriented video content comprising music videos, live performances, and short videos; and WeSing, which enables users to sing along from its library of karaoke songs and share their performances in audio or video formats with friends.