Zurich Insurance Group Ltd FI Takes $1.75 Million Position in Warner Music Group Corp. $WMG

Key Points

• Zurich Insurance Group Ltd FI has acquired 55,700 shares of Warner Music Group Corp., valued at approximately $1,746,000, during the first quarter.
• Warner Music Group's recent earnings report showed a missed EPS estimate, reporting ($0.03) compared to an expected $0.27, despite revenue rising to $1.69 billion, surpassing predictions.
• The company has announced an increase in its quarterly dividend from $0.18 to $0.19 per share, resulting in an annualized yield of 2.3% amidst a payout ratio of 133.33%.

Zurich Insurance Group Ltd FI purchased a new position in shares of Warner Music Group Corp. (NASDAQ:WMG - Free Report) in the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The fund purchased 55,700 shares of the company's stock, valued at approximately $1,746,000.

Several other large investors have also 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 approximately $40,000. UMB Bank n.a. increased its position in shares of Warner Music Group by 101.5% during the first quarter. UMB Bank n.a. now owns 1,453 shares of the company's stock worth $46,000 after purchasing an additional 732 shares in the last quarter. State of Wyoming purchased a new stake in shares of Warner Music Group during the fourth quarter worth approximately $47,000. Quarry LP purchased a new stake in shares of Warner Music Group during the first quarter worth approximately $54,000. Finally, PNC Financial Services Group Inc. grew its holdings in Warner Music Group by 45.2% in the 1st quarter. PNC Financial Services Group Inc. now owns 2,820 shares of the company's stock valued at $88,000 after buying an additional 878 shares in the last quarter. 96.88% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on WMG. Barclays upped their target price on Warner Music Group from $28.00 to $30.00 and gave the company an "equal weight" rating in a report on Wednesday, July 9th. Citigroup upped their target price on Warner Music Group from $33.00 to $41.00 and gave the company a "buy" rating in a report on Tuesday, September 9th. JPMorgan Chase & Co. upped their target price on Warner Music Group from $32.00 to $33.00 and gave the company an "overweight" rating in a report on Monday, July 7th. Tigress Financial increased their price target on Warner Music Group from $44.00 to $45.00 and gave the stock a "buy" rating in a report on Wednesday, September 10th. Finally, Bank of America upgraded Warner Music Group from an "underperform" rating to a "neutral" rating and increased their price target for the stock from $28.00 to $33.00 in a report on Wednesday, July 9th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and ten have issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $34.65.

Warner Music Group Stock Up 0.1%

WMG stock traded up $0.04 during trading on Monday, hitting $33.66. 221,203 shares of the company's stock were exchanged, compared to its average volume of 1,888,971. The company has a current ratio of 0.66, a quick ratio of 0.64 and a debt-to-equity ratio of 5.37. Warner Music Group Corp. has a 52-week low of $25.56 and a 52-week high of $36.64. The business has a 50-day moving average price of $31.71 and a two-hundred day moving average price of $30.04. The stock has a market capitalization of $17.55 billion, a price-to-earnings ratio of 59.07, a PEG ratio of 1.66 and a beta of 1.31.

Warner Music Group (NASDAQ:WMG - Get Free Report) last issued its quarterly earnings data 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). Warner Music Group had a net margin of 4.59% and a return on equity of 39.95%. The firm had revenue of $1.69 billion during the quarter, compared to analysts' expectations of $1.59 billion. During the same quarter in the prior year, the firm posted $0.27 EPS. Warner Music Group's quarterly revenue was up 8.7% compared to the same quarter last year. As a group, equities research analysts expect that Warner Music Group Corp. will post 1.39 EPS for the current year.

Warner Music Group Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 3rd. Shareholders of record on Wednesday, August 20th were paid a $0.19 dividend. This is an increase from Warner Music Group's previous quarterly dividend of $0.18. This represents a $0.76 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date was Wednesday, August 20th. Warner Music Group's dividend payout ratio (DPR) is presently 133.33%.

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.