AlphaQuest LLC Takes Position in Warner Music Group Corp. $WMG

Key Points

• AlphaQuest LLC has acquired a new position in Warner Music Group Corp. by purchasing 15,409 shares valued at approximately $483,000 during the 1st quarter.
• Warner Music Group recently reported a quarterly revenue of $1.69 billion, an 8.7% increase year-over-year, although it missed EPS expectations by $0.30.
• The company announced a dividend increase, raising its quarterly dividend from $0.18 to $0.19 per share, with a 2.3% yield and a payout ratio of 133.33%.

AlphaQuest LLC acquired a new position in shares of Warner Music Group Corp. (NASDAQ:WMG - Free Report) in the first quarter, according to its most recent 13F filing with the SEC. The institutional investor acquired 15,409 shares of the company's stock, valued at approximately $483,000.

Other institutional investors have also recently added to or reduced their stakes in the company. Itau Unibanco Holding S.A. grew its stake in shares of Warner Music Group by 122.6% in the fourth quarter. Itau Unibanco Holding S.A. now owns 1,064 shares of the company's stock worth $33,000 after purchasing an additional 586 shares in the last quarter. Banque Cantonale Vaudoise bought a new position in shares of Warner Music Group in the first quarter worth $40,000. UMB Bank n.a. grew its stake in shares of Warner Music Group by 101.5% in 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 bought a new position in shares of Warner Music Group in the fourth quarter worth $47,000. Finally, PNC Financial Services Group Inc. grew its stake in shares of Warner Music Group by 45.2% in the first quarter. PNC Financial Services Group Inc. now owns 2,820 shares of the company's stock worth $88,000 after purchasing an additional 878 shares in the last quarter. 96.88% of the stock is currently owned by institutional investors.

Warner Music Group Stock Down 0.1%

Warner Music Group stock traded down $0.05 during mid-day trading on Friday, hitting $33.35. The company's stock had a trading volume of 918,647 shares, compared to its average volume of 2,493,075. The firm's 50 day moving average is $30.57 and its 200 day moving average is $30.24. The company has a market cap of $17.38 billion, a PE ratio of 58.51, a price-to-earnings-growth ratio of 1.65 and a beta of 1.26. 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 Corp. 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 announced its quarterly earnings data on Thursday, August 7th. The company reported ($0.03) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.27 by ($0.30). Warner Music Group had a return on equity of 39.95% and a net margin of 4.59%.The business had revenue of $1.69 billion during the quarter, compared to analysts' expectations of $1.59 billion. During the same period in the prior year, the company posted $0.27 earnings per share. The firm's revenue was up 8.7% on a year-over-year basis. On average, analysts anticipate that Warner Music Group Corp. will post 1.39 earnings per share for the current year.

Warner Music Group Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 3rd. Stockholders of record on Wednesday, August 20th will be issued a dividend of $0.19 per share. The ex-dividend date of this dividend is Wednesday, August 20th. This represents a $0.76 dividend on an annualized basis and a dividend yield of 2.3%. This is a positive change from Warner Music Group's previous quarterly dividend of $0.18. Warner Music Group's payout ratio is currently 133.33%.

Analyst Ratings Changes

Several research firms have recently issued reports on WMG. UBS Group reissued a "buy" rating and issued a $40.00 price target (up previously from $38.00) on shares of Warner Music Group in a research note on Friday, August 8th. Wolfe Research raised Warner Music Group to a "strong-buy" rating in a research note on Thursday, May 8th. Wells Fargo & Company increased their price target on Warner Music Group from $30.00 to $34.00 and gave the stock an "equal weight" rating in a research note on Friday, August 8th. JPMorgan Chase & Co. increased their price target on Warner Music Group from $32.00 to $33.00 and gave the stock an "overweight" rating in a research note on Monday, July 7th. Finally, Guggenheim decreased their price target on Warner Music Group from $40.00 to $37.00 and set a "buy" rating for the company in a research note on Friday, May 9th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and ten have given a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $33.88.

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.