Hahn Capital Management LLC Sells 37,743 Shares of Warner Music Group Corp. $WMG

Key Points

• Hahn Capital Management cut its Warner Music Group stake by 16.7% in Q1, selling 37,743 shares and leaving it with 187,605 shares valued at about $4.79 million.
• Warner Music Group reported better-than-expected Q1 results, with EPS of $0.44 versus $0.30 expected and revenue of $1.73 billion versus $1.61 billion estimated; revenue rose 16.7% from a year earlier.
• Analysts remain mostly positive on WMG, with 14 Buy ratings, 4 Hold ratings, and a consensus Moderate Buy target of $38.43, even as the stock traded around $28.33 and paid a quarterly dividend yielding 2.7%.

Hahn Capital Management LLC lessened its stake in shares of Warner Music Group Corp. (NASDAQ:WMG - Free Report) by 16.7% during the 1st quarter, according to its most recent 13F filing with the SEC. The firm owned 187,605 shares of the company's stock after selling 37,743 shares during the period. Warner Music Group makes up approximately 3.0% of Hahn Capital Management LLC's holdings, making the stock its 16th largest holding. Hahn Capital Management LLC's holdings in Warner Music Group were worth $4,791,000 at the end of the most recent reporting period.

A number of other hedge funds have also bought and sold shares of the company. Caitong International Asset Management Co. Ltd lifted its holdings in shares of Warner Music Group by 774.6% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 1,207 shares of the company's stock worth $41,000 after acquiring an additional 1,069 shares during the last quarter. Quarry LP bought a new position in Warner Music Group during the 4th quarter valued at about $40,000. Osaic Holdings Inc. raised its position in Warner Music Group by 480.9% in the 2nd quarter. Osaic Holdings Inc. now owns 1,493 shares of the company's stock worth $41,000 after purchasing an additional 1,236 shares during the period. Parallel Advisors LLC lifted its stake in Warner Music Group by 355.7% in the fourth quarter. Parallel Advisors LLC now owns 1,531 shares of the company's stock worth $47,000 after purchasing an additional 1,195 shares during the last quarter. Finally, US Bancorp DE boosted its position in shares of Warner Music Group by 23.5% during the third quarter. US Bancorp DE now owns 1,729 shares of the company's stock valued at $59,000 after buying an additional 329 shares during the period. Institutional investors own 96.88% of the company's stock.

Warner Music Group Price Performance

Warner Music Group stock opened at $28.33 on Monday. The company has a debt-to-equity ratio of 5.62, a current ratio of 0.73 and a quick ratio of 0.71. The stock has a market cap of $14.78 billion, a price-to-earnings ratio of 33.33, a price-to-earnings-growth ratio of 0.42 and a beta of 1.30. The firm has a 50-day moving average of $30.00 and a two-hundred day moving average of $29.07. Warner Music Group Corp. has a 1 year low of $23.34 and a 1 year high of $35.42.

Warner Music Group (NASDAQ:WMG - Get Free Report) last issued its earnings results on Thursday, May 7th. The company reported $0.44 EPS for the quarter, topping analysts' consensus estimates of $0.30 by $0.14. The business had revenue of $1.73 billion for the quarter, compared to analyst estimates of $1.61 billion. Warner Music Group had a net margin of 6.34% and a return on equity of 62.01%. The company's quarterly revenue was up 16.7% compared to the same quarter last year. During the same period last year, the company posted $0.07 earnings per share. On average, research analysts forecast that Warner Music Group Corp. will post 1.52 earnings per share for the current year.

Warner Music Group Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 2nd. Shareholders of record on Tuesday, May 26th were issued a dividend of $0.19 per share. This represents a $0.76 annualized dividend and a yield of 2.7%. The ex-dividend date was Tuesday, May 26th. Warner Music Group's dividend payout ratio (DPR) is presently 89.41%.

Analyst Ratings Changes

WMG has been the topic of several recent analyst reports. JPMorgan Chase & Co. increased their price target on Warner Music Group from $40.00 to $43.00 and gave the stock an "overweight" rating in a report on Friday, May 8th. UBS Group raised their price target on Warner Music Group from $40.00 to $42.00 and gave the stock a "buy" rating in a research note on Friday, May 8th. Morgan Stanley set a $39.00 price objective on Warner Music Group in a report on Friday, May 8th. Sanford C. Bernstein reaffirmed an "outperform" rating on shares of Warner Music Group in a research report on Friday, May 8th. Finally, Zacks Research lowered Warner Music Group from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 22nd. Fourteen investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Warner Music Group currently has a consensus rating of "Moderate Buy" and an average price target of $38.43.

Warner Music Group Company Profile

Warner Music Group is a major global music company that operates across recorded music and music publishing. Its recorded-music business comprises a portfolio of well-known labels—including Atlantic, Warner Records and Parlophone—as well as distribution and artist-services operations that support both established and emerging artists. The company's publishing arm, Warner Chappell Music, manages songwriting catalogs and administers rights for compositions across multiple media, providing licensing for film, television, advertising and other commercial uses.

WMG's activities span the full music value chain: signing and developing artists, producing and marketing recordings, distributing music through physical channels and streaming platforms, and monetizing rights through licensing, synchronization and neighboring-rights collection.

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