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Why Have Tencent Music Entertainment Group ADR (NYSE: TME) Shares Declined So Much?

Tencent Music Entertainment Group ADR (NYSE:TME) price is hovering higher on Monday, November 20, jumping 6.15% above its previous close.

A look at today’s price movement shows that the recent level at last check reads $8.37, with intraday deals fluctuating between $8.28 and $8.49. The company’s 5Y monthly beta was ticking 0.77 while its P/E ratio in the trailing 12-month period read 20.87. Taking into account the 52-week price action we note that the stock hit a 52-week high of $9.29 and 52-week low of $5.44. The stock added 33.61% on its value in the past month.

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Tencent Music Entertainment Group ADR, which has a market valuation of $6.18 billion, is expected to release its quarterly earnings report Nov 14, 2023.

Revisions to the company’s EPS highlights a short term direction of a stock’s price movement, which in the last 7 days came up with no upward and no downward reviews. On the technical perspective front, indicators give TME a short term outlook of 100% Buy on average. Looking at the stock’s medium term indicators we note that it is averaging as a Hold, while an average of long term indicators are currently assigning the stock as 50% Buy.

Here is a look at the average analyst rating for the stock as represented on a scale of 1.00 to 5.00, with the extremes of 1.00 and 5.00 suggesting the stock is strong buy or strong sell respectively. Specifically, 29 analysts have assigned TME a recommendation rating as follows: 5 rate it as a Hold; 17 advise Buy while 6 analyst(s) assign an Overweight rating. 0 analyst(s) have tagged the Tencent Music Entertainment Group ADR (TME) stock as Underweight, with 1 recommending Sell. In general, analysts have rated the stock Overweight, a scenario likely to bolster investors out for an opportunity to add to their holdings of the company’s shares.

If we dive deeper into the stock’s performance we see the positive picture represented by the PEG ratio, currently standing at 1.26. The overview shows that TME’s price is at present 19.22% off the SMA20 and 30.05% from the SMA50. The Relative Strength Index (RSI) metric on the 14-day timeframe is pointing at 79.87, with weekly volatility standing at 6.94%. The indicator jumps to 4.10% when calculated based on the past 30 days. Tencent Music Entertainment Group ADR (NYSE:TME)’s beta value is holding at 0.81, while the average true range (ATR) indicator is currently reading 0.35. Considering analysts have assigned the stock a price target range of $41.49-$78.77 as the low and high respectively, we find the trailing 12-month average consensus price target to be $63.84. Based on this estimate, we see that today’s price at last check is roughly -366.7% off the estimated low and -786.05% off the forecast high. Investors will no doubt be excited to see the share price fall to $64.62, which is the median consensus price, and at that level TME would be -626.88% from recent price.

An analysis of the Tencent Music Entertainment Group ADR (NYSE:TME) stock in terms of its daily trading volume indicates that the 3-month average is 7.63 million. However, this figure increases on the past 10-day timeline to an average of 11.37 million.

Current records show that the company has 696.11M in outstanding shares. The insiders’ percentage holdings are 0.02% of outstanding shares while the percentage share held by institutions stands at 55.78%. The stats also highlight that short interest as of Oct 30, 2023, stood at 13.99 million shares, which puts the short ratio at the time at 2.01. From this we can glean that short interest is 0.82% of company’s current outstanding shares. Notably, we see that shares short in October rose slightly given the previous month’s figure stood at 13.07 million. But the 7.31% upside, the stock’s price has registered year-to-date as of today’s value, will likely reignite investor interest given the prospect of it rallying even higher.