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's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for TME turned positive on April 24, 2025. Looking at past instances where TME's MACD turned positive, the stock continued to rise in of 42 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where TME's RSI Oscillator exited the oversold zone, of 29 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on April 23, 2025. You may want to consider a long position or call options on TME as a result. In of 86 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
TME moved above its 50-day moving average on April 23, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for TME crossed bullishly above the 50-day moving average on May 02, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TME advanced for three days, in of 276 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 9 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TME declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
TME broke above its upper Bollinger Band on May 02, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for TME entered a downward trend on April 23, 2025. 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 Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued 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 (2.518) is normal, around the industry mean (11.896). P/E Ratio (26.378) is within average values for comparable stocks, (50.251). Projected Growth (PEG Ratio) (1.429) is also within normal values, averaging (3.572). Dividend Yield (0.000) settles around the average of (0.027) among similar stocks. P/S Ratio (4.437) is also within normal values, averaging (19.917).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. TME’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably 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.
The Tickeron PE Growth Rating for this company is (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 Profit vs. Risk Rating rating for this company is (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 88, placing this stock better than average.
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General Information
an online music entertainment platform
Industry InternetSoftwareServices