Warner Music Group Corp. $WMG Shares Bought by Entropy Technologies LP

Key Points

• Entropy Technologies LP increased its Warner Music Group stake by 267.9% in the first quarter, reaching 78,534 shares valued at approximately $2.0 million. Institutional investors collectively own 96.88% of WMG’s outstanding stock.
• Analysts maintain a generally positive view, with 14 Buy ratings and four Holds producing a “Moderate Buy” consensus and an average price target of $38.43.
• Warner Music Group exceeded quarterly expectations, reporting $0.44 in EPS and $1.73 billion in revenue, up 16.7% year over year. The company also pays a quarterly dividend of $0.19 per share, representing a 2.9% annualized yield.

Entropy Technologies LP grew its holdings in Warner Music Group Corp. (NASDAQ:WMG - Free Report) by 267.9% in the first quarter, according to its most recent disclosure with the SEC. The fund owned 78,534 shares of the company's stock after buying an additional 57,188 shares during the period. Entropy Technologies LP's holdings in Warner Music Group were worth $2,006,000 at the end of the most recent reporting period.

Other hedge funds have also made changes to their positions in the company. Renaissance Technologies LLC lifted its stake in shares of Warner Music Group by 88.3% in the 1st quarter. Renaissance Technologies LLC now owns 1,521,800 shares of the company's stock worth $38,867,000 after acquiring an additional 713,578 shares during the period. Gabelli Funds LLC raised its stake in shares of Warner Music Group by 4.3% during the 1st quarter. Gabelli Funds LLC now owns 24,000 shares of the company's stock worth $613,000 after buying an additional 1,000 shares in the last quarter. Inceptionr LLC purchased a new position in shares of Warner Music Group during the 1st quarter worth approximately $1,350,000. Sei Investments Co. lifted its holdings in shares of Warner Music Group by 3.6% in the 1st quarter. Sei Investments Co. now owns 631,224 shares of the company's stock valued at $16,121,000 after buying an additional 21,994 shares during the period. Finally, Cetera Investment Advisers acquired a new stake in shares of Warner Music Group in the 1st quarter valued at approximately $442,000. Institutional investors and hedge funds own 96.88% of the company's stock.

Analyst Ratings Changes

A number of analysts recently weighed in on WMG shares. Sanford C. Bernstein restated an "outperform" rating on shares of Warner Music Group in a research note on Friday, May 8th. Zacks Research cut Warner Music Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, June 22nd. Weiss Ratings restated a "hold (c)" rating on shares of Warner Music Group in a research report on Wednesday, June 24th. Morgan Stanley set a $39.00 price target on shares of Warner Music Group in a research note on Friday, May 8th. Finally, Guggenheim upped their price target 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. Fourteen research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Warner Music Group has an average rating of "Moderate Buy" and an average target price of $38.43.

Warner Music Group Price Performance

Shares of NASDAQ WMG opened at $26.55 on Monday. The firm's 50-day moving average is $29.42 and its two-hundred day moving average is $28.95. The company has a market capitalization of $13.85 billion, a PE ratio of 31.24, a price-to-earnings-growth ratio of 0.39 and a beta of 1.30. Warner Music Group Corp. has a 12-month low of $23.34 and a 12-month high of $35.42. The company has a debt-to-equity ratio of 5.62, a current ratio of 0.73 and a quick ratio of 0.71.

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 analysts' consensus estimates of $0.30 by $0.14. Warner Music Group had a net margin of 6.34% and a return on equity of 62.01%. The business had revenue of $1.73 billion during the quarter, compared to analysts' expectations of $1.61 billion. During the same period last year, the company posted $0.07 EPS. The company's revenue was up 16.7% on a year-over-year basis. Equities analysts anticipate that Warner Music Group Corp. will post 1.52 EPS for the current fiscal year.

Warner Music Group Announces Dividend

The business also recently announced 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 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date was Tuesday, May 26th. Warner Music Group's dividend payout ratio is 89.41%.

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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