JPMorgan Chase & Co. Raises Holdings in Warner Music Group Corp. $WMG

Key Points

• JPMorgan Chase & Co. boosted its Warner Music Group stake by 15.2% in the fourth quarter, ending with 16.6 million shares worth about $510.5 million and representing roughly 3.19% ownership.
• Several other institutional investors also increased their positions, and 96.88% of WMG shares are held by hedge funds and other institutions, indicating heavy institutional ownership.
• Analysts remain constructive on the stock: JPMorgan raised its price target to $43, while the consensus rating is Moderate Buy with an average target price of $37.38.

JPMorgan Chase & Co. increased its holdings in Warner Music Group Corp. (NASDAQ:WMG - Free Report) by 15.2% in the 4th quarter, according to its most recent disclosure with the SEC. The firm owned 16,645,276 shares of the company's stock after acquiring an additional 2,200,362 shares during the period. JPMorgan Chase & Co. owned approximately 3.19% of Warner Music Group worth $510,511,000 at the end of the most recent quarter.

Several other hedge funds also recently added to or reduced their stakes in WMG. Caitong International Asset Management Co. Ltd grew its position in Warner Music Group by 774.6% in the third 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 period. Osaic Holdings Inc. grew its position in Warner Music Group by 480.9% in the second quarter. Osaic Holdings Inc. now owns 1,493 shares of the company's stock worth $41,000 after acquiring an additional 1,236 shares during the period. Parallel Advisors LLC grew its position 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 acquiring an additional 1,195 shares during the period. US Bancorp DE grew its position in Warner Music Group by 23.5% in the third quarter. US Bancorp DE now owns 1,729 shares of the company's stock worth $59,000 after acquiring an additional 329 shares during the period. Finally, CWM LLC grew its position in Warner Music Group by 40.8% in the fourth quarter. CWM LLC now owns 3,486 shares of the company's stock worth $107,000 after acquiring an additional 1,011 shares during the period. 96.88% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the company. Guggenheim increased their price objective on Warner Music Group from $34.00 to $36.00 and gave the stock a "buy" rating in a research report on Friday, May 8th. UBS Group upped 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 target on Warner Music Group in a research note on Friday, May 8th. Scotiabank upgraded Warner Music Group from a "sector perform" rating to a "sector outperform" rating in a research note on Friday, February 13th. Finally, JPMorgan Chase & Co. upped their price target on Warner Music Group from $40.00 to $43.00 and gave the stock an "overweight" rating in a research note on Friday, May 8th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat, Warner Music Group has a consensus rating of "Moderate Buy" and a consensus target price of $37.38.

Warner Music Group Stock Down 2.3%

Shares of NASDAQ WMG opened at $28.69 on Thursday. The stock has a market cap of $14.97 billion, a P/E ratio of 33.75, a PEG ratio of 0.43 and a beta of 1.27. The company has a current ratio of 0.73, a quick ratio of 0.71 and a debt-to-equity ratio of 5.62. Warner Music Group Corp. has a 12-month low of $23.34 and a 12-month high of $35.42. The business's fifty day simple moving average is $30.29 and its 200-day simple moving average is $29.19.

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

Warner Music Group Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 2nd. Stockholders of record on Tuesday, May 26th were paid a $0.19 dividend. This represents a $0.76 annualized dividend and a dividend yield of 2.6%. The ex-dividend date was Tuesday, May 26th. Warner Music Group's dividend payout ratio (DPR) is presently 89.41%.

Warner Music Group News Summary

Here are the key news stories impacting Warner Music Group this week:

• Positive Sentiment: Warner Music Group announced it is acquiring Sureel AI, a startup focused on AI attribution and detection, which may help protect artists’ rights and improve future monetization in AI-related uses of music. WARNER MUSIC GROUP ACQUIRES SUREEL AI
• Positive Sentiment: The deal gives Warner Music more tools to track how AI systems use artists’ work, supporting its broader strategy to protect intellectual property and negotiate AI licensing terms. Warner Music acquires AI attribution startup Sureel AI
• Neutral Sentiment: WMG was also listed on a Zacks “Strong Buy” income stock list, which may lend some support but is less directly tied to the day’s price move. Best Income Stocks to Buy for June 10th
• Negative Sentiment: Offsetting the upbeat acquisition news, a musicians’ union lawsuit over AI use highlights ongoing legal and regulatory risks for Warner Music and the wider music industry. Musicians union sues UMG and Warner Music over AI use

About Warner Music Group

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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