Warner Music Group Corp. (NASDAQ:WMG) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Warner Music Group has a “Moderate Buy” consensus rating from 16 brokerages, with 12 buy ratings and four holds. Analysts’ average 12-month price target is $38.25, compared with a recent share price of $28.02.
• The company’s latest quarterly results exceeded expectations, reporting EPS of $0.51 versus the $0.34 consensus and revenue of $1.86 billion, up 10.4% year over year.
• Warner Music increased its quarterly dividend to $0.20 per share, representing an annualized payout of $0.80 and a yield of approximately 2.9%; institutional investors and hedge funds own 96.88% of the stock.

Warner Music Group Corp. (NASDAQ:WMG - Get Free Report) has earned an average rating of "Moderate Buy" from the sixteen brokerages that are presently covering the firm, MarketBeat.com reports. Four analysts have rated the stock with a hold rating and twelve have given a buy rating to the company. The average 1-year target price among brokers that have issued a report on the stock in the last year is $38.25.

Several equities analysts have issued reports on the stock. Weiss Ratings reissued a "hold (c)" rating on shares of Warner Music Group in a research note on Wednesday, June 24th. Wall Street Zen cut shares of Warner Music Group from a "buy" rating to a "hold" rating in a research note on Saturday, July 18th. Zacks Research lowered shares of Warner Music Group from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 22nd. Finally, Morgan Stanley reiterated an "overweight" rating and set a $36.00 price target on shares of Warner Music Group in a research note on Thursday, August 6th.

Warner Music Group Stock Performance

Shares of Warner Music Group stock opened at $28.02 on Monday. Warner Music Group has a 1 year low of $23.34 and a 1 year high of $35.42. The company has a market capitalization of $14.66 billion, a P/E ratio of 22.24, a PEG ratio of 0.48 and a beta of 1.31. The company's fifty day moving average is $27.50 and its two-hundred day moving average is $28.34. 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 posted its quarterly earnings data on Wednesday, August 5th. The company reported $0.51 EPS for the quarter, beating the consensus estimate of $0.34 by $0.17. The firm had revenue of $1.86 billion during the quarter, compared to the consensus estimate of $1.81 billion. Warner Music Group had a return on equity of 85.50% and a net margin of 9.20%.The firm's revenue was up 10.4% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.03) EPS. Analysts forecast that Warner Music Group will post 1.45 earnings per share for the current year.

Warner Music Group Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Shareholders of record on Thursday, August 20th were given a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a yield of 2.9%. The ex-dividend date was Thursday, August 20th. This is a positive change from Warner Music Group's previous quarterly dividend of $0.19. Warner Music Group's payout ratio is presently 63.49%.

Institutional Trading of Warner Music Group

Hedge funds have recently modified their holdings of the business. State of Michigan Retirement System boosted its holdings in Warner Music Group by 2.6% during the first quarter. State of Michigan Retirement System now owns 35,400 shares of the company's stock worth $904,000 after buying an additional 900 shares in the last quarter. Continuum Advisory LLC purchased a new position in Warner Music Group in the second quarter valued at about $25,000. QRG Capital Management Inc. lifted its position in shares of Warner Music Group by 1.6% during the 1st quarter. QRG Capital Management Inc. now owns 61,847 shares of the company's stock valued at $1,580,000 after acquiring an additional 960 shares during the period. Gabelli Funds LLC lifted its position in shares of Warner Music Group by 4.3% during the 1st quarter. Gabelli Funds LLC now owns 24,000 shares of the company's stock valued at $613,000 after acquiring an additional 1,000 shares during the period. Finally, Oregon Public Employees Retirement Fund boosted its stake in shares of Warner Music Group by 3.8% during the 1st quarter. Oregon Public Employees Retirement Fund now owns 30,210 shares of the company's stock worth $772,000 after acquiring an additional 1,100 shares in the last quarter. 96.88% of the stock is owned by institutional investors and hedge funds.

About Warner Music Group

Warner Music Group Corp. is a global music entertainment company that operates through two principal businesses: recorded music and music publishing. Its recorded-music operations discover, develop, market and distribute music from a broad roster of artists through labels including Warner Records, Atlantic Records, Elektra Music Group and Parlophone.

The company's music publishing business, Warner Chappell Music, manages and administers copyrights for songwriters and composers. Warner Music Group also provides artist and label services, digital distribution, licensing, marketing, physical and digital sales, and other services that support the commercial use of recorded music and musical compositions.

Warner Music Group serves artists, songwriters, labels, streaming platforms, broadcasters, brands and other music-industry partners in markets around the world.

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