Are Tencent Music Entertainment Group ADR (TME) stocks a prudent buy?

At the time of writing, Tencent Music Entertainment Group ADR [TME] stock is trading at $11.59, down -0.52%. One of the good ways to gauge the recent performance is if the stock’s short-term value is rising or falling. The TME shares have gain 4.23% over the last week, with a monthly amount glided 11.87%, and seem to be holding up well over a long-time horizon.

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On 22, March 2024, Tencent Music Entertainment Group Announces Senior Management Changes. In a post published today on Yahoo Finance, Tencent Music Entertainment Group (“TME”, or the “Company”) (NYSE: TME and HKEX: 1698), the leading online music and audio entertainment platform in China, today announced that Mr. Zhenyu Xie has tendered his resignation from his executive positions as the Company’s President, Chief Technology Officer and other relevant roles, along with his position as a member of the board of directors (the “Board”). These resignations, submitted for personal reasons, will take effect on March 31, 2024.

From an analyst’s perspective:

Tencent Music Entertainment Group ADR [NYSE: TME] stock has seen the most recent analyst activity on March 20, 2024, when Goldman upgraded its rating to a Buy but kept the price target unchanged to $14 for it. Previously, Citigroup upgraded its rating to Buy on March 20, 2024, and elevated its price target to $13. On February 05, 2024, Redburn Atlantic initiated with a Buy rating and assigned a price target of $12 on the stock. CLSA started tracking the stock assigning a Outperform rating and suggested a price target of $10.50 on February 05, 2024. UBS upgraded its rating to a Buy but $10.50 remained the price target by the analyst firm on January 24, 2024. JP Morgan upgraded its rating to Overweight for this stock on November 16, 2023. In a note dated July 31, 2023, Citigroup downgraded an Neutral rating on this stock and revised its target price from $9.70 to $7.50.

For the past year, the stock price of Tencent Music Entertainment Group ADR fluctuated between $5.70 and $11.80. Currently, Wall Street analysts expect the stock to reach $14.56 within the next 12 months. Tencent Music Entertainment Group ADR [NYSE: TME] shares were valued at $11.59 at the most recent close of the market. An investor can expect a potential return of 25.63% based on the average TME price forecast.

Analyzing the TME fundamentals

According to Tencent Music Entertainment Group ADR [NYSE:TME], the company’s sales were 3.92B for trailing twelve months, which represents an -8.61% plunge. Gross Profit Margin for this corporation currently stands at 0.34% with Operating Profit Margin at 0.2%, Pretax Profit Margin comes in at 0.2%, and Net Profit Margin reading is 0.17%. To continue investigating profitability, this company’s Return on Assets is posted at 0.07, Equity is 0.09 and Total Capital is 0.09. Upon thorough examination of the company’s fundamental financial framework, it becomes apparent that the debt-to-equity ratio stands at 0.11.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 11.53 points at the first support level, and at 11.47 for the second support level. However, for the 1st resistance point, the stock is sitting at 11.67, and for the 2nd resistance point, it is at 11.75.

Tencent Music Entertainment Group ADR [TME] reported earnings per share of $0.14 for its fiscal quarter that ended on 12/30/2023. Based on the Wall Street analysts’ estimates, the company was expected to report earnings of $0.13/share, meaning a difference of $0.01 and a surprise factor of 7.70%. By comparison, the stated earnings for the previous quarter ended on 9/29/2023 were $0.12 per share as compared to estimates of $0.12 per share, a difference of $0 representing a surprise of 0.00%.

Ratios To Look Out For

It is important to note that Tencent Music Entertainment Group ADR [NYSE:TME] has a current ratio of 2.49. Also, the Quick Ratio is 2.49, while the Cash Ratio stands at 1.08. Considering the valuation of this stock, the price to sales ratio is 2.13, the price to book ratio is 2.44 and price to earnings (TTM) ratio is 26.39.

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