Warner Music Group Corp. (NASDAQ:WMG) Stock Has Consensus Price Target of $38.27 According to Brokerages

Key Points

• Analysts maintain a moderately bullish outlook: Fifteen analysts give Warner Music Group a consensus “Moderate Buy” rating, with 11 buys, three holds and one sell. The average 12-month price target is $38.27 versus the reported $30.69 share price.
• Quarterly results exceeded expectations: Warner Music reported earnings of $0.51 per share, above the $0.34 consensus estimate, while revenue rose 10.4% year over year to $1.86 billion.
• The company raised its quarterly dividend to $0.20 per share, equivalent to an annualized $0.80 payout and a 2.6% yield. Institutional investors own 96.88% of the stock.

Shares of Warner Music Group Corp. (NASDAQ:WMG - Get Free Report) have been given a consensus rating of "Moderate Buy" by the fifteen analysts that are currently covering the firm, Marketbeat.com reports. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating and eleven have issued a buy rating on the company. The average 12-month price target among brokerages that have issued a report on the stock in the last year is $38.27.

WMG has been the subject of several recent analyst reports. Morgan Stanley reiterated an "overweight" rating and set a $36.00 price objective on shares of Warner Music Group in a research report on Thursday, August 6th. Guggenheim restated a "buy" rating and issued a $36.00 target price on shares of Warner Music Group in a report on Tuesday, September 29th. Weiss Ratings lowered shares of Warner Music Group from a "hold (c)" rating to a "hold (c-)" rating in a report on Friday, October 2nd. Zacks Research cut shares of Warner Music Group from a "hold" rating to a "strong sell" rating in a research report on Thursday, October 1st. Finally, Wall Street Zen downgraded Warner Music Group from a "buy" rating to a "hold" rating in a report on Saturday, July 18th.

Warner Music Group Stock Performance

NASDAQ:WMG opened at $30.69 on Friday. 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 has a fifty-two week low of $23.34 and a fifty-two week high of $35.42. The company has a 50 day simple moving average of $27.71 and a two-hundred day simple moving average of $28.59. The company has a market capitalization of $16.05 billion, a PE ratio of 24.36, a P/E/G ratio of 0.40 and a beta of 1.40.

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

Warner Music Group Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Thursday, August 20th were given a $0.20 dividend. This is a boost from Warner Music Group's previous quarterly dividend of $0.19. The ex-dividend date of this dividend was Thursday, August 20th. This represents a $0.80 annualized dividend and a dividend yield of 2.6%. Warner Music Group's dividend payout ratio is 63.49%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Continuum Advisory LLC acquired a new stake in Warner Music Group during the second quarter worth approximately $25,000. EverSource Wealth Advisors LLC increased its holdings in Warner Music Group by 148.1% in the first quarter. EverSource Wealth Advisors LLC now owns 2,377 shares of the company's stock worth $61,000 after purchasing an additional 1,419 shares in the last quarter. Nykredit A S acquired a new position in Warner Music Group in the second quarter valued at approximately $73,000. Central Pacific Bank Trust Division acquired a new position in Warner Music Group in the second quarter valued at approximately $107,000. Finally, Caitong International Asset Management Co. Ltd lifted its stake in Warner Music Group by 284.7% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 4,643 shares of the company's stock valued at $142,000 after buying an additional 3,436 shares during the period. 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.

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