UBS Group AG Acquires 981,912 Shares of Warner Music Group Corp. $WMG

Key Points

• UBS Group AG increased its stake in Warner Music Group by 44.1% in Q4, buying 981,912 shares to hold 3,208,063 shares (about 0.61% of the company) worth roughly $98.4 million.
• Warner Music reported Q results of $0.33 EPS (missing the $0.40 consensus) but beat revenue expectations with $1.84 billion, a 10.4% year-over-year revenue increase.
• The stock has a market cap of $14.62 billion and a P/E of 48.24, pays a $0.19 quarterly dividend (2.7% yield) with a 131% payout ratio, and carries an average analyst rating of “Moderate Buy” with a $36 target.

UBS Group AG increased its holdings in shares of Warner Music Group Corp. (NASDAQ:WMG - Free Report) by 44.1% during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 3,208,063 shares of the company's stock after purchasing an additional 981,912 shares during the quarter. UBS Group AG owned 0.61% of Warner Music Group worth $98,391,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Nisa Investment Advisors LLC lifted its holdings in shares of Warner Music Group by 120.1% during the third quarter. Nisa Investment Advisors LLC now owns 865 shares of the company's stock valued at $29,000 after purchasing an additional 472 shares in the last quarter. Farther Finance Advisors LLC lifted its holdings in Warner Music Group by 57.5% in the third quarter. Farther Finance Advisors LLC now owns 879 shares of the company's stock valued at $30,000 after acquiring an additional 321 shares during the period. Caitong International Asset Management Co. Ltd lifted its holdings 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 valued at $41,000 after acquiring an additional 1,069 shares during the period. Osaic Holdings Inc. lifted its holdings 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 acquiring an additional 1,236 shares during the period. Finally, Mather Group LLC. bought a new position in Warner Music Group in the third quarter valued at about $42,000. 96.88% of the stock is owned by institutional investors.

Warner Music Group Stock Performance

Shares of WMG opened at $27.98 on Friday. The company has a quick ratio of 0.69, a current ratio of 0.70 and a debt-to-equity ratio of 5.30. The business has a 50-day simple moving average of $27.30 and a two-hundred day simple moving average of $29.08. The stock has a market cap of $14.62 billion, a price-to-earnings ratio of 48.24, a PEG ratio of 0.46 and a beta of 1.25. Warner Music Group Corp. has a 52 week low of $23.34 and a 52 week high of $34.63.

Warner Music Group (NASDAQ:WMG - Get Free Report) last issued its quarterly earnings results on Thursday, February 5th. The company reported $0.33 EPS for the quarter, missing analysts' consensus estimates of $0.40 by ($0.07). The company had revenue of $1.84 billion during the quarter, compared to analysts' expectations of $1.77 billion. Warner Music Group had a return on equity of 38.33% and a net margin of 4.43%.The business's quarterly revenue was up 10.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.45 EPS. On average, analysts expect that Warner Music Group Corp. will post 1.42 EPS for the current year.

Warner Music Group Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 3rd. Shareholders of record on Wednesday, February 18th were given a $0.19 dividend. The ex-dividend date was Wednesday, February 18th. This represents a $0.76 dividend on an annualized basis and a yield of 2.7%. Warner Music Group's dividend payout ratio is presently 131.03%.

Wall Street Analysts Forecast Growth

WMG has been the topic of a number of recent research reports. Weiss Ratings reissued a "hold (c)" rating on shares of Warner Music Group in a report on Friday, March 27th. Sanford C. Bernstein reissued an "outperform" rating on shares of Warner Music Group in a report on Wednesday, January 14th. Morgan Stanley increased their target price on Warner Music Group from $37.00 to $38.00 and gave the company an "overweight" rating in a report on Tuesday, April 21st. Guggenheim lowered their target price on Warner Music Group from $37.00 to $34.00 and set a "buy" rating on the stock in a report on Tuesday, March 31st. Finally, Moffett Nathanson initiated coverage on Warner Music Group in a report on Tuesday, January 27th. They issued a "buy" rating and a $38.00 target price on the stock. Thirteen analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $36.00.

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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