The company announced a $1 billion share buyback plan
The shares of China-based Tencent Music Entertainment Group (NYSE:TME) are flat despite earlier staging a brief rebound, last seen at $19.99, after the company announced a $1 billion share buyback plan. After breaking out past pressure at the $28 level and hitting a March 23 record high of $32.24, TME had been plummeting lower. Down 34.8% in the past week, the equity is overdue for a breather on the charts.
Tencent Music Entertainment stock could see further tailwinds from a short squeeze, too. The 74.77 million shares sold short currently make up an impressive 24.4% of the stock's available float, or over five days' worth of pent-up buying power.
Lastly, today's news has options traders rushing in, with overall options volume running at nine times what's typically seen at this point already. So far, 22,000 calls and 12,000 puts have crossed the tape. The most popular is the May 16 put, where new positions are being opened.