Artemis Investment Management LLP, a leading institutional investor, has increased its stake in Tencent Music Entertainment Group (NYSE:TME) by 10.8% during the second quarter, according to the company’s recent filing with the Securities & Exchange Commission. The investment firm now owns 441,972 shares of Tencent Music Entertainment Group’s stock, after purchasing an additional 43,000 shares.
The total value of Artemis Investment Management LLP’s holdings in Tencent Music Entertainment Group amounts to $3,258,000 as of the end of the most recent quarter. This indicates a strong belief in the company’s potential for growth and profitability.
Tencent Music Entertainment Group recently released its earnings results for the second quarter on August 15th. The company reported earnings per share (EPS) of $0.82 for the quarter, falling short of the consensus estimate of $0.88 by $0.06. Despite this slight miss, Tencent Music Entertainment Group generated revenue of $7.29 billion during this period, only slightly lower than analyst estimates of $7.30 billion.
The net margin for Tencent Music Entertainment Group was recorded at 16.00%, showcasing its ability to generate profits efficiently. Furthermore, the company demonstrated a return on equity (ROE) of 9.87%, indicating its effective utilization of shareholder’s investments.
Compared to the same quarter last year, Tencent Music Entertainment Group experienced a 5.5% increase in quarterly revenue growth rate. In the previous year’s comparable quarter, it posted earnings per share (EPS) of $0.07.
Sell-side analysts are optimistic about Tencent Music Entertainment Group’s prospects and project that it will post EPS of 0.46 for the current fiscal year.
As an online music entertainment platform operator based in China, Tencent Music Entertainment Group offers various services including music streaming, online karaoke, and live streaming services through platforms like QQ Music and Kugou Music. It allows users to discover music in personalized ways and also provides WeSing, a platform enabling users to sing from a vast library of karaoke songs and share their performances with friends.
Artemis Investment Management LLP’s decision to increase its stake in Tencent Music Entertainment Group implies confidence in the company’s ability to continue delivering strong financial performance. With its expanding user base and range of innovative services, Tencent Music Entertainment Group is well-positioned to thrive in the evolving landscape of music entertainment in China and beyond.
Analysis of Institutional Investor Activity and Financial Indicators in Tencent Music Entertainment Group
As of the latest available data on September 30, 2023, there have been some notable changes in positions by large investors in Tencent Music Entertainment Group. HighTower Advisors LLC acquired a new position during the first quarter, investing approximately $51,000. Similarly, 1832 Asset Management L.P. purchased shares worth around $76,000 in the fourth quarter of the previous year. Evergreen Capital Management LLC also entered the scene by buying a stake valued at $83,000 in the first quarter. Baker Tilly Wealth Management LLC was another investor who initiated a position with an investment of $87,000 during the same period. Advisor Partners II LLC concluded this list by acquiring a position worth $94,000 in the fourth quarter.
It is interesting to note that institutional investors and hedge funds now own approximately 23.59% of Tencent Music Entertainment Group’s stock, indicating their confidence and belief in its potential.
On Friday, TME stock opened at a price of $6.23. The company currently boasts a market capitalization of $10.69 billion and has been trading with a PE ratio of 14.83. Moreover, it holds a price-to-earnings-growth ratio of 0.70 and a beta score of 0.81 – factors that contribute to understanding its financial standing in comparison to its peers.
Examining other financial indicators reveals that Tencent Music Entertainment Group maintains a quick ratio and current ratio both at 2.50 – reflecting its ability to meet short-term obligations efficiently while maintaining liquidity for ongoing operations. Additionally, the debt-to-equity ratio stands at an impressive 0.11 – showcasing its strong financial health and low reliance on borrowed funds.
In terms of stock performance over the course of the past year, Tencent Music Entertainment Group saw lows at $3.14 per share and highs reaching up to $9.29 per share during this period.
Research analysts have also provided their insights on Tencent Music Entertainment Group. HSBC recently lowered their price target from $8.40 to $7.40, citing specific reasons for the adjustment in their research note published on Thursday, July 20th. Similarly, JPMorgan Chase & Co. reiterated a “neutral” rating and established a price target of $7.50 on shares of Tencent Music Entertainment Group in their report released on Wednesday, July 26th.
Citigroup followed suit by decreasing the price objective from $7.50 to $7.00 and assigning a “neutral” rating to the stock in their report on Wednesday, August 16th. Lastly, Bank of America dropped its target price further to $8.80 and maintained a “buy” rating for the company in a report published on the same day.
Overall, out of eleven investment analysts’ assessments, five suggested holding the stock while six favored buying it. As per Bloomberg’s data analysis, Tencent Music Entertainment Group currently holds an average rating of “Moderate Buy,” with an average target price estimated at $8.72.
For more comprehensive insights and research reports related to Tencent Music Entertainment Group, feel free to explore our latest research publication that covers this dynamic entity in detail and includes up-to-date information on its performance and potential prospects for investors.