Warner Music Group Corp. $WMG Stake Reduced by Cooke & Bieler LP

Key Points

• Cooke & Bieler LP reduced its Warner Music Group stake by 28.4% in the third quarter, selling 1.31 million shares and retaining 3.31 million shares valued at approximately $91.3 million.
• Institutional investors and hedge funds own 96.88% of WMG’s shares, while the stock recently traded at $31.44, up 0.4%, with a one-year range of $23.34 to $35.42.
• Warner Music reported quarterly revenue of $1.86 billion, up 10.4% year over year, and beat EPS estimates; it also increased its quarterly dividend to $0.20. Analysts maintain a “Moderate Buy” consensus with an average price target of $38.27.

Cooke & Bieler LP cut its holdings in shares of Warner Music Group Corp. (NASDAQ:WMG - Free Report) by 28.4% during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 3,306,697 shares of the company's stock after selling 1,314,127 shares during the quarter. Cooke & Bieler LP owned about 0.63% of Warner Music Group worth $91,298,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Continuum Advisory LLC acquired a new stake in shares of Warner Music Group during the second quarter worth $25,000. IFP Advisors Inc boosted its stake in shares of Warner Music Group by 108.6% in the third quarter. IFP Advisors Inc now owns 1,235 shares of the company's stock valued at $34,000 after buying an additional 643 shares during the period. EverSource Wealth Advisors LLC increased its stake in Warner Music Group by 148.1% during the 1st quarter. EverSource Wealth Advisors LLC now owns 2,377 shares of the company's stock worth $61,000 after acquiring an additional 1,419 shares during the period. Nykredit A S acquired a new position in Warner Music Group in the 2nd quarter valued at $73,000. Finally, Central Pacific Bank Trust Division bought a new stake in shares of Warner Music Group during the 2nd quarter valued at $107,000. 96.88% of the stock is currently owned by institutional investors and hedge funds.

Warner Music Group Stock Up 0.4%

Shares of Warner Music Group stock opened at $31.44 on Thursday. The firm has a market cap of $16.45 billion, a price-to-earnings ratio of 23.04, a PEG ratio of 0.44 and a beta of 1.40. The stock's 50-day moving average is $28.16 and its 200 day moving average is $28.76. The company has a debt-to-equity ratio of 4.94, a current ratio of 0.73 and a quick ratio of 0.72. Warner Music Group Corp. has a one year low of $23.34 and a one year high of $35.42.

Warner Music Group (NASDAQ:WMG - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported $0.51 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.34 by $0.17. Warner Music Group had a net margin of 9.20% and a return on equity of 85.50%. 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 previous year, the company earned ($0.03) EPS. Warner Music Group's quarterly revenue was up 10.4% compared to the same quarter last year. Equities research analysts anticipate that Warner Music Group Corp. will post 1.45 EPS for the current year.

Warner Music Group Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Thursday, August 20th were paid a $0.20 dividend. This represents a $0.80 annualized dividend and a dividend yield of 2.5%. This is a boost from Warner Music Group's previous quarterly dividend of $0.19. The ex-dividend date of this dividend was Thursday, August 20th. Warner Music Group's dividend payout ratio (DPR) is currently 63.49%.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on WMG. Morgan Stanley reiterated an "overweight" rating and set a $36.00 price objective on shares of Warner Music Group in a research note on Thursday, August 6th. Zacks Research cut Warner Music Group from a "hold" rating to a "strong sell" rating in a report on Thursday, October 1st. Wall Street Zen lowered shares of Warner Music Group from a "buy" rating to a "hold" rating in a report on Saturday, July 18th. Guggenheim reiterated a "buy" rating and set a $36.00 price target on shares of Warner Music Group in a report on Tuesday, September 29th. Finally, UBS Group boosted their price objective on Warner Music Group from $42.00 to $43.00 and gave the stock a "buy" rating in a research report on Thursday, October 1st. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $38.27.

Warner Music Group Profile

Warner Music Group Corp. is a global music entertainment company that develops, records, distributes and promotes music. Its recorded-music operations work with artists across a range of genres and release music through labels including Atlantic Records, Warner Records, Elektra Music Group and Parlophone. The company distributes music through streaming platforms, digital services, physical formats and other channels.

Warner Music Group also operates Warner Chappell Music, one of the world's major music publishing companies.

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