Zacks Research Downgrades Warner Music Group (NASDAQ:WMG) to Strong Sell

Key Points

• Zacks Research downgraded Warner Music Group to “strong sell” from “hold,” contrasting with the broader analyst consensus of “Moderate Buy” and an average price target of $38.33.
• WMG shares opened at $26.82, down 0.9%, and remain below their 50-day and 200-day moving averages; the stock has traded between $23.34 and $35.42 over the past year.
• The company exceeded quarterly expectations, reporting $0.51 in adjusted earnings per share versus a $0.34 consensus estimate and $1.86 billion in revenue, up 10.4% year over year.

Warner Music Group (NASDAQ:WMG - Get Free Report) was downgraded by Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued on Thursday, Zacks reports.

Other equities analysts have also recently issued reports about the company. Morgan Stanley reiterated an "overweight" rating and set a $36.00 price target on shares of Warner Music Group in a report on Thursday, August 6th. Guggenheim reaffirmed a "buy" rating and issued a $36.00 target price on shares of Warner Music Group in a research report on Tuesday. Wall Street Zen lowered shares of Warner Music Group from a "buy" rating to a "hold" rating in a research note on Saturday, July 18th. UBS Group lifted their price target on shares of Warner Music Group from $42.00 to $43.00 and gave the company a "buy" rating in a research report on Thursday. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Warner Music Group in a research note on Monday, September 21st. Twelve analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Warner Music Group presently has an average rating of "Moderate Buy" and an average target price of $38.33.

Warner Music Group Stock Down 0.9%

WMG stock opened at $26.82 on Thursday. Warner Music Group has a one year low of $23.34 and a one year high of $35.42. The firm has a market cap of $14.03 billion, a PE ratio of 21.29, a PEG ratio of 0.38 and a beta of 1.40. The firm's 50 day moving average price is $27.39 and its 200-day moving average price is $28.30. The company has a debt-to-equity ratio of 4.94, a quick ratio of 0.72 and a current ratio of 0.73.

Warner Music Group (NASDAQ:WMG - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The company reported $0.51 earnings per share for the quarter, topping the consensus estimate of $0.34 by $0.17. The company had revenue of $1.86 billion during the quarter, compared to analyst estimates of $1.81 billion. Warner Music Group had a return on equity of 85.50% and a net margin of 9.20%.During the same period in the prior year, the business posted ($0.03) earnings per share. The firm's revenue for the quarter was up 10.4% compared to the same quarter last year. On average, equities research analysts anticipate that Warner Music Group will post 1.45 EPS for the current year.

Hedge Funds Weigh In On Warner Music Group

Several institutional investors have recently bought and sold shares of WMG. Continuum Advisory LLC acquired a new stake in shares of Warner Music Group during the second quarter worth about $25,000. EverSource Wealth Advisors LLC grew its holdings in shares of Warner Music Group by 148.1% in the first quarter. EverSource Wealth Advisors LLC now owns 2,377 shares of the company's stock valued at $61,000 after purchasing an additional 1,419 shares in the last quarter. Nykredit A S acquired a new position in shares of Warner Music Group in the second quarter valued at approximately $73,000. Central Pacific Bank Trust Division purchased a new stake in Warner Music Group during the 2nd quarter worth approximately $107,000. Finally, Caitong International Asset Management Co. Ltd lifted its holdings in Warner Music Group by 284.7% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 4,643 shares of the company's stock worth $142,000 after buying an additional 3,436 shares in the last quarter. 96.88% of the stock is owned by institutional investors and hedge funds.

Warner Music Group Company Profile

Warner Music Group Corp. is a global music entertainment company that operates through two primary businesses: recorded music and music publishing. Its recorded-music operations discover, develop, market and distribute music from artists and songwriters through labels including Warner Records, Atlantic Records and Parlophone, as well as a range of regional and specialty labels.

The company's music publishing division, Warner Chappell Music, manages copyrights and licenses compositions for use in recordings, films, television, advertising, video games and other media.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.