Bank of America Raises Warner Music Group (NASDAQ:WMG) Price Target to $36.00

Key Points

• Bank of America has raised the price target for Warner Music Group from $33.00 to $36.00, suggesting a potential upside of 4.76% from its current stock price.
• Multiple analysts have recently issued upgrades and price target increases for WMG, with a consensus rating of "Moderate Buy" and an average target price of $34.82.
• Warner Music Group reported a revenue of $1.69 billion for the last quarter, exceeding analysts' expectations, despite missing earnings per share estimates.

Warner Music Group (NASDAQ:WMG - Get Free Report) had its target price lifted by equities research analysts at Bank of America from $33.00 to $36.00 in a research report issued on Wednesday,Benzinga reports. The brokerage presently has a "neutral" rating on the stock. Bank of America's target price would suggest a potential upside of 4.76% from the stock's current price.

WMG has been the topic of a number of other research reports. Rothschild & Co Redburn raised Warner Music Group from a "sell" rating to a "neutral" rating and set a $30.00 target price on the stock in a research note on Tuesday, July 15th. JPMorgan Chase & Co. increased their price objective on Warner Music Group from $32.00 to $33.00 and gave the company an "overweight" rating in a report on Monday, July 7th. The Goldman Sachs Group raised their price target on shares of Warner Music Group from $28.00 to $31.00 and gave the stock a "neutral" rating in a report on Tuesday, August 12th. Barclays raised their price target on shares of Warner Music Group from $28.00 to $30.00 and gave the stock an "equal weight" rating in a research report on Wednesday, July 9th. Finally, Sanford C. Bernstein raised their price target on shares of Warner Music Group from $32.00 to $34.00 and gave the company an "outperform" rating in a research report on Thursday, July 3rd. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and ten have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Warner Music Group presently has a consensus rating of "Moderate Buy" and a consensus target price of $34.82.

Warner Music Group Price Performance

Shares of Warner Music Group stock traded up $0.31 during trading on Wednesday, reaching $34.37. 182,403 shares of the stock traded hands, compared to its average volume of 1,884,384. The company has a market capitalization of $17.91 billion, a price-to-earnings ratio of 60.33, a P/E/G ratio of 1.67 and a beta of 1.31. The business has a fifty day simple moving average of $32.44 and a two-hundred day simple moving average of $30.06. The company has a debt-to-equity ratio of 5.37, a current ratio of 0.66 and a quick ratio of 0.64. Warner Music Group has a 52-week low of $25.56 and a 52-week high of $36.64.

Warner Music Group (NASDAQ:WMG - Get Free Report) last posted its earnings results on Thursday, August 7th. The company reported ($0.03) earnings per share for the quarter, missing analysts' consensus estimates of $0.27 by ($0.30). The business had revenue of $1.69 billion during the quarter, compared to the consensus estimate of $1.59 billion. Warner Music Group had a return on equity of 39.95% and a net margin of 4.59%.The business's quarterly revenue was up 8.7% on a year-over-year basis. During the same quarter last year, the firm earned $0.27 earnings per share. Sell-side analysts expect that Warner Music Group will post 1.39 EPS for the current year.

Institutional Investors Weigh In On Warner Music Group

Several institutional investors and hedge funds have recently made changes to their positions in WMG. Banque Cantonale Vaudoise purchased a new stake in shares of Warner Music Group during the first quarter worth about $40,000. Osaic Holdings Inc. lifted its position in shares of Warner Music Group by 480.9% during the second quarter. Osaic Holdings Inc. now owns 1,493 shares of the company's stock worth $41,000 after purchasing an additional 1,236 shares in the last quarter. UMB Bank n.a. lifted its holdings in Warner Music Group by 101.5% in the 1st quarter. UMB Bank n.a. now owns 1,453 shares of the company's stock worth $46,000 after buying an additional 732 shares in the last quarter. CWM LLC boosted its holdings in Warner Music Group by 528.0% in the second quarter. CWM LLC now owns 1,884 shares of the company's stock valued at $51,000 after purchasing an additional 1,584 shares during the last quarter. Finally, Quarry LP acquired a new stake in shares of Warner Music Group during the first quarter worth approximately $54,000. 96.88% of the stock is currently owned by hedge funds and other institutional investors.

About Warner Music Group

Warner Music Group Corp. operates as a music entertainment company in the United States, the United Kingdom, Germany, and internationally. It operates through Recorded Music and Music Publishing segments. The Recorded Music segment is involved in the discovery and development of recording artists, as well as related marketing, promotion, distribution, sale, and licensing of music created by such recording artists; markets its music catalog through compilations and reissuances of previously released music and video titles, as well as previously unreleased materials; and conducts its operation primarily through a collection of record labels, such as Warner Records and Atlantic Records, as well as Asylum, Big Beat, Canvasback, East West, Erato, FFRR, Fueled by Ramen, Nonesuch, Parlophone, Reprise, Roadrunner, Sire, Spinnin' Records, Warner Classics, and Warner Music Nashville.

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