Hsbc Holdings PLC Has $1.34 Million Stock Position in Warner Music Group Corp. $WMG

Key Points

• HSBC Holdings PLC cut its Warner Music Group stake by 82.4% in the fourth quarter, leaving it with 43,588 shares valued at about $1.34 million.
• Warner Music Group reported strong quarterly results, posting EPS of $0.44 versus $0.30 expected and revenue of $1.73 billion versus $1.61 billion expected, with revenue up 16.7% year over year.
• The company also paid a quarterly dividend of $0.19 per share and has drawn a generally positive analyst outlook, with a consensus rating of Moderate Buy and a target price of $37.38.

Hsbc Holdings PLC lessened its stake in Warner Music Group Corp. (NASDAQ:WMG - Free Report) by 82.4% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 43,588 shares of the company's stock after selling 203,972 shares during the quarter. Hsbc Holdings PLC's holdings in Warner Music Group were worth $1,337,000 as of its most recent SEC filing.

Other institutional investors have also added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd lifted its stake in 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 valued at $41,000 after purchasing an additional 1,069 shares during the last quarter. Quarry LP acquired a new position in Warner Music Group during the fourth quarter worth approximately $40,000. Osaic Holdings Inc. raised its stake in Warner Music Group by 480.9% in the second quarter. Osaic Holdings Inc. now owns 1,493 shares of the company's stock valued at $41,000 after buying an additional 1,236 shares during the period. Parallel Advisors LLC raised 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 valued at $47,000 after buying an additional 1,195 shares during the period. Finally, US Bancorp DE lifted its position in shares of Warner Music Group by 23.5% in 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 last quarter. 96.88% of the stock is currently owned by institutional investors and hedge funds.

Warner Music Group Trading Up 2.3%

WMG stock opened at $27.70 on Thursday. The company has a debt-to-equity ratio of 5.62, a quick ratio of 0.71 and a current ratio of 0.73. The company's 50-day simple moving average is $30.25 and its 200 day simple moving average is $29.14. Warner Music Group Corp. has a 52 week low of $23.34 and a 52 week high of $35.42. The company has a market capitalization of $14.45 billion, a PE ratio of 32.59, a price-to-earnings-growth ratio of 0.40 and a beta of 1.30.

Warner Music Group (NASDAQ:WMG - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The company reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.30 by $0.14. The business had revenue of $1.73 billion during the quarter, compared to analysts' expectations of $1.61 billion. Warner Music Group had a net margin of 6.34% and a return on equity of 62.01%. The business's revenue was up 16.7% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.07 EPS. As a group, sell-side analysts anticipate that Warner Music Group Corp. will post 1.52 earnings per share for the current year.

Warner Music Group Announces Dividend

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

Wall Street Analysts Forecast Growth

WMG has been the subject of several research reports. Wall Street Zen raised Warner Music Group from a "hold" rating to a "buy" rating in a report on Monday. Evercore reiterated an "outperform" rating and issued a $43.00 price objective on shares of Warner Music Group in a report on Friday, May 8th. JPMorgan Chase & Co. increased their price objective on shares of Warner Music Group from $40.00 to $43.00 and gave the company an "overweight" rating in a research report on Friday, May 8th. Guggenheim raised their target price on shares of Warner Music Group from $34.00 to $36.00 and gave the stock a "buy" rating in a research note on Friday, May 8th. Finally, Zacks Research downgraded shares of Warner Music Group from a "strong-buy" rating to a "hold" rating in a report on Monday, June 22nd. Fourteen analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $37.38.

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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