Tidal Investments LLC Raises Stock Position in Warner Music Group Corp. $WMG

Key Points

• Tidal Investments increased its Warner Music Group position by 1,072.2% in the second quarter, adding 531,077 shares to own 580,609 shares worth approximately $15.7 million. Institutional investors collectively own 96.88% of WMG.
• Warner Music Group reported quarterly revenue of $1.86 billion, up 10.4% year over year, and EPS of $0.51, beating analysts’ $0.34 estimate. The company also raised its quarterly dividend to $0.20, or $0.80 annually.
• Analysts maintain a generally positive outlook, with 12 Buy ratings and four Holds producing a consensus “Moderate Buy” rating and a $38.25 price target, compared with WMG’s reported share price of $27.84.

Tidal Investments LLC grew its holdings in shares of Warner Music Group Corp. (NASDAQ:WMG - Free Report) by 1,072.2% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 580,609 shares of the company's stock after buying an additional 531,077 shares during the quarter. Tidal Investments LLC owned 0.11% of Warner Music Group worth $15,717,000 at the end of the most recent reporting period.

Other institutional investors have also recently made changes to their positions in the company. Darsana Capital Partners LP grew its position in Warner Music Group by 0.8% in the second quarter. Darsana Capital Partners LP now owns 11,943,199 shares of the company's stock worth $323,302,000 after acquiring an additional 93,199 shares in the last quarter. Engineers Gate Manager LP increased its stake in Warner Music Group by 97.8% during the second quarter. Engineers Gate Manager LP now owns 103,176 shares of the company's stock worth $2,793,000 after acquiring an additional 51,017 shares during the last quarter. Squarepoint Ops LLC raised its position in Warner Music Group by 6.0% during the second quarter. Squarepoint Ops LLC now owns 54,270 shares of the company's stock valued at $1,469,000 after purchasing an additional 3,089 shares during the period. Nykredit A S purchased a new stake in Warner Music Group during the second quarter valued at approximately $73,000. Finally, Corient Private Wealth LP bought a new stake in shares of Warner Music Group in the 2nd quarter valued at approximately $6,199,000. Institutional investors own 96.88% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on WMG shares. Wall Street Zen downgraded Warner Music Group from a "buy" rating to a "hold" rating in a research report on Saturday, July 18th. Morgan Stanley restated an "overweight" rating and issued a $36.00 price target on shares of Warner Music Group in a research report on Thursday, August 6th. Zacks Research cut shares of Warner Music Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, June 22nd. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Warner Music Group in a research report on Wednesday, June 24th. Twelve research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, Warner Music Group presently has a consensus rating of "Moderate Buy" and a consensus price target of $38.25.

Warner Music Group Price Performance

Shares of WMG stock opened at $27.84 on Friday. The stock has a 50 day moving average price of $27.50 and a 200 day moving average price of $28.31. Warner Music Group Corp. has a 52-week low of $23.34 and a 52-week high of $35.42. The company has a debt-to-equity ratio of 4.94, a quick ratio of 0.72 and a current ratio of 0.73. The firm has a market capitalization of $14.56 billion, a P/E ratio of 22.10, a P/E/G ratio of 0.48 and a beta of 1.31.

Warner Music Group (NASDAQ:WMG - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $0.51 EPS for the quarter, beating the consensus estimate of $0.34 by $0.17. Warner Music Group had a return on equity of 85.50% and a net margin of 9.20%.The company had revenue of $1.86 billion for the quarter, compared to the consensus estimate of $1.81 billion. During the same quarter in the prior year, the company posted ($0.03) EPS. Warner Music Group's quarterly revenue was up 10.4% on a year-over-year basis. As a group, sell-side analysts predict that Warner Music Group Corp. will post 1.46 earnings per share for the current year.

Warner Music Group Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Thursday, August 20th were issued a $0.20 dividend. The ex-dividend date was Thursday, August 20th. This is a boost from Warner Music Group's previous quarterly dividend of $0.19. This represents a $0.80 dividend on an annualized basis and a dividend yield of 2.9%. Warner Music Group's dividend payout ratio (DPR) is currently 63.49%.

Key Warner Music Group News

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

• Positive Sentiment: Warner partners with Suno on licensed AI music. Suno launched its v6 AI music models using licensed music from WMG, BMG and Believe, allowing users to generate new works inspired by participating artists. The agreement gives Warner a way to monetize its catalog in the fast-growing AI music market while establishing a legal framework for training models on copyrighted music. Reuters article
• Positive Sentiment: Management characterized the arrangement as a strategic win. Warner Music CEO Robert Kyncl reportedly said the partnership can expand opportunities for artists and songwriters and help grow revenue tied to music creation. Such comments reinforce the potential for new licensing, royalty and platform-related income beyond traditional streaming. Billboard article
• Neutral Sentiment: Reported short-interest data appears invalid. The September 10 report lists zero shares sold short, unchanged from zero previously, while also showing an undefined percentage change. With a stated days-to-cover ratio of zero, the data does not provide a reliable signal about short-selling pressure or potential short-covering activity.
• Neutral Sentiment: Key risks remain. Investors will likely watch how much revenue the Suno deal generates, whether AI-created music competes with Warner’s existing catalog and how artists respond to the use of licensed material. The partnership reduces some copyright uncertainty, but it does not eliminate execution or cannibalization risks.

Warner Music Group Company Profile

Warner Music Group Corp. is a global music entertainment company that operates through two principal businesses: recorded music and music publishing. Its recorded-music operations discover, develop, market and distribute music from a broad roster of artists through labels including Warner Records, Atlantic Records, Elektra Music Group and Parlophone.

The company's music publishing business, Warner Chappell Music, manages and administers copyrights for songwriters and composers. Warner Music Group also provides artist and label services, digital distribution, licensing, marketing, physical and digital sales, and other services that support the commercial use of recorded music and musical compositions.

Warner Music Group serves artists, songwriters, labels, streaming platforms, broadcasters, brands and other music-industry partners in markets around the world.

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