Tencent Music (TME, $20.04) to buy back $1 billion in shares
On Sunday, Tencent Music Entertainment Group announced a plan to repurchase $1 billion in shares.
The China-based music-streaming service has authorized a buyback of up to $1 billion in Class A shares, in the form of American depositary receipts, over the next year.
“The share repurchase program is a strong indication of the board’s confidence in the company’s business outlook and long-term strategy, and we believe it will ultimately benefit TME and create value for its shareholders,” board Chairman Tong Tao Sang said in a statement.
Tencent’s share buyback announcement comes days after the U.S. Securities and Exchange Commission said would start implementing the Holding Foreign Companies Accountable Act, violations of which could result in delisting from U.S. stock markets.
TME in -9.83% downward trend, falling for three consecutive days on May 24, 2022
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where TME declined for three days, in 185 of 231 cases, the price declined further within the following month. The odds of a continued downward trend are 80%.
Throughout the month of 04/25/22 - 05/25/22, the price experienced a -9% Downtrend. During the week of 05/18/22 - 05/25/22, the stock fell -8%.
The Moving Average Convergence Divergence Histogram (MACD) for TME turned negative on May 25, 2022. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 30 similar instances when the indicator turned negative. In 24 of the 30 cases the stock turned lower in the days that followed. This puts the odds of success at 80%.
The Aroon Indicator for TME entered a downward trend on May 23, 2022. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Stochastic Indicator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 23 of 39 cases where TME's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 59%.
The Momentum Indicator moved above the 0 level on May 25, 2022. You may want to consider a long position or call options on TME as a result. In 36 of 54 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 67%.
Following a +6.68% 3-day Advance, the price is estimated to grow further. Considering data from situations where TME advanced for three days, in 134 of 185 cases, the price rose further within the following month. The odds of a continued upward trend are 72%.
TME may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 64%. During the last month, the daily ratio of advancing to declining volumes was 1.05 to 1.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TME’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock worse than average.
The Tickeron PE Growth Rating for this company is 88 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 84 (best 1 - 100 worst), indicating slightly worse than average price growth. TME’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 68 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.871) is normal, around the industry mean (17.596). P/E Ratio (15.361) is within average values for comparable stocks, (51.329). Projected Growth (PEG Ratio) (1.298) is also within normal values, averaging (4.027). Dividend Yield (0.000) settles around the average of (0.022) among similar stocks. P/S Ratio (1.381) is also within normal values, averaging (100.091).
The Tickeron SMR rating for this company is 5 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
Companies in this industry typically license software on a subscription basis and it is centrally hosted. Such products usually go by the names web-based software, on-demand software and hosted software. Cloud computing has emerged as a major force in this space, making it possible to save files to a remote database (without requiring them to be saved on local storage device); as long as a device has access to the web, it can access the data and the software programs to run it. This has in many cases facilitated cost efficiency, speed and security of data for businesses and consumers. Alphabet Inc., Facebook, Inc. and Yahoo! Inc. are some well-known names in the internet software/services industry.
The average market capitalization across the Internet Software/Services Industry is 36.6B. The market cap for tickers in the group ranges from 1.1K to 1.5T. GOOGL holds the highest valuation in this group at 1.5T. The lowest valued company is MSEZ at 1.1K.
The average weekly price growth across all stocks in the Internet Software/Services Industry was -4.87%. For the same Industry, the average monthly price growth was -12.58%, and the average quarterly price growth was -22.9%. BTIM experienced the highest price growth at 83.33%, while ELRE experienced the biggest fall at -76.45%.
- 5/19/22 8:24 AM: Tencent Music Entertainment Group (TME, $4.06) was a top weekly gainer, with a +9.14% jump
- 5/3/22 8:19 AM: Tencent Music Entertainment Group (TME, $4.46) was a top weekly gainer, with a +8.25% jump
- 3/25/22 6:10 AM: Tencent Music Entertainment Group (TME, $5.22) was a top weekly gainer, with a +24.58% jump
The average weekly volume growth across all stocks in the Internet Software/Services Industry was 92.86%. For the same stocks of the Industry, the average monthly volume growth was 72.78% and the average quarterly volume growth was 284.9%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Positive Outlook today, backed by the 15 Indicator. Tickeron has a positive outlook on this group and predicts a further increase by more than 4.00% within the next month with a likelihood of 36%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.2.
90 stocks in the group of tickers exhibit a similar positive trend based on the BollingerBands indicator with an average likelihood of 79%.
The most notable companies in this group are Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL), Meta Platforms (NASDAQ:FB), NetEase (NASDAQ:NTES), Baidu (NASDAQ:BIDU), Twitter (NYSE:TWTR), Snap (NYSE:SNAP), Spotify Technology SA (NYSE:SPOT), Pinterest (NYSE:PINS), Zynga (NASDAQ:ZNGA).
The average market capitalization across the group is 32.5B. The market cap for tickers in the group ranges from 0 to 1.4T. GOOG holds the highest valuation in this group at 1.4T. The lowest valued company is HTSC at 0.
- 5/21/22 6:31 AM: Alphabet (GOOG, $2,186.26) saw a $97.6B market cap decrease this week
- 5/21/22 6:30 AM: Alphabet (GOOGL, $2,178.16) saw a $91.5B market cap decrease this week
- 5/19/22 8:24 AM: Alphabet (GOOG, $2,248.02), market cap dropped by $60.1B
The average weekly price growth across all stocks in the group was -2.04%. For the same group, the average monthly price growth was -12.57%, and the average quarterly price growth was -37.59%. SPIN experienced the highest price growth at 86.42%, while MKD experienced the biggest fall at -52.48%.
- 5/25/22 7:32 AM: Meta Platforms (FB, $181.28) was a top loser this week, declining -10.53%. Expect a Downtrend reversal
- 5/25/22 7:32 AM: iQIYI (IQ, $3.41) was a top loser this week, declining -7.34%
- 5/25/22 7:32 AM: OLB Group (The) (OLB, $1.07) is a top weekly loser for penny stocks, falling -15.75%
The average weekly volume growth across all stocks in the group was 329.78%. For the same stocks of the group, the average monthly volume growth was 261.74% and the average quarterly volume growth was 243.17%
- 5/25/22 7:27 AM: The volume for China Index Holdings stock increased for one day, resulting in a record-breaking daily growth of 867% of the 65-Day Volume Moving Average
- 5/24/22 6:54 AM: The volume for BIT Mining stock increased for three consecutive days, resulting in a record-breaking daily growth of 232% of the 65-Day Volume Moving Average
- 5/21/22 6:24 AM: The volume for Arco Platform stock increased for two consecutive days, resulting in a record-breaking daily growth of 249% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows