Warner Music Group (NASDAQ:WMG) Sets New 12-Month Low - Time to Sell?

Warner Music Group Corp. (NASDAQ:WMG - Get Free Report) shares reached a new 52-week low on Wednesday . The stock traded as low as $25.87 and last traded at $26.16, with a volume of 1818711 shares traded. The stock had previously closed at $26.22.

Wall Street Analyst Weigh In

WMG has been the topic of a number of recent research reports. Barclays decreased their target price on Warner Music Group from $31.00 to $28.00 and set an "equal weight" rating on the stock in a report on Friday, May 9th. FBN Securities assumed coverage on Warner Music Group in a report on Friday, March 28th. They set a "sector perform" rating and a $35.00 price objective on the stock. UBS Group dropped their price target on Warner Music Group from $41.00 to $38.00 and set a "buy" rating for the company in a research report on Friday, May 9th. Macquarie reiterated a "neutral" rating and set a $30.00 price objective on shares of Warner Music Group in a research report on Thursday, January 30th. Finally, Morgan Stanley cut their price objective on shares of Warner Music Group from $32.00 to $31.00 and set an "equal weight" rating on the stock in a research report on Friday, May 9th. Two research analysts have rated the stock with a sell rating, seven have given a hold rating, eight have issued a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $34.06.

Warner Music Group Price Performance

The company has a debt-to-equity ratio of 5.67, a current ratio of 0.69 and a quick ratio of 0.67. The firm has a fifty day moving average of $28.95 and a two-hundred day moving average of $31.15. The stock has a market capitalization of $13.75 billion, a P/E ratio of 26.92, a P/E/G ratio of 1.03 and a beta of 1.32.

Warner Music Group (NASDAQ:WMG - Get Free Report) last issued its quarterly earnings data on Thursday, May 8th. The company reported $0.07 earnings per share for the quarter, missing analysts' consensus estimates of $0.28 by ($0.21). The company had revenue of $1.48 billion for the quarter, compared to analysts' expectations of $1.52 billion. Warner Music Group had a return on equity of 79.01% and a net margin of 8.07%. The company's revenue for the quarter was down .7% compared to the same quarter last year. During the same quarter last year, the company earned $0.18 earnings per share. On average, analysts predict that Warner Music Group Corp. will post 1.39 EPS for the current year.

Warner Music Group Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 3rd. Investors of record on Tuesday, May 27th will be paid a dividend of $0.18 per share. The ex-dividend date of this dividend is Tuesday, May 27th. This represents a $0.72 annualized dividend and a dividend yield of 2.73%. Warner Music Group's dividend payout ratio (DPR) is presently 82.76%.

Insider Buying and Selling at Warner Music Group

In other Warner Music Group news, EVP Timothy Matusch sold 1,000 shares of the business's stock in a transaction dated Wednesday, April 2nd. The stock was sold at an average price of $31.43, for a total transaction of $31,430.00. Following the sale, the executive vice president now owns 87,649 shares in the company, valued at approximately $2,754,808.07. The trade was a 1.13% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 72.21% of the stock is owned by insiders.

Hedge Funds Weigh In On Warner Music Group

Hedge funds and other institutional investors have recently bought and sold shares of the business. Itau Unibanco Holding S.A. increased its holdings in Warner Music Group by 122.6% in the 4th quarter. Itau Unibanco Holding S.A. now owns 1,064 shares of the company's stock worth $33,000 after buying an additional 586 shares during the period. SBI Securities Co. Ltd. purchased a new position in Warner Music Group in the 4th quarter valued at $35,000. Banque Cantonale Vaudoise purchased a new position in Warner Music Group in the 1st quarter valued at $40,000. Aster Capital Management DIFC Ltd purchased a new position in Warner Music Group in the 4th quarter valued at $43,000. Finally, UMB Bank n.a. raised its holdings in shares of Warner Music Group by 101.5% during the 1st quarter. UMB Bank n.a. now owns 1,453 shares of the company's stock worth $46,000 after acquiring an additional 732 shares during the period. Institutional investors and hedge funds own 96.88% of the company's stock.

About Warner Music Group

Warner Music Group Corp. operates as a music entertainment company in the United States, the United Kingdom, Germany, and internationally. It operates through Recorded Music and Music Publishing segments. The Recorded Music segment is involved in the discovery and development of recording artists, as well as related marketing, promotion, distribution, sale, and licensing of music created by such recording artists; markets its music catalog through compilations and reissuances of previously released music and video titles, as well as previously unreleased materials; and conducts its operation primarily through a collection of record labels, such as Warner Records and Atlantic Records, as well as Asylum, Big Beat, Canvasback, East West, Erato, FFRR, Fueled by Ramen, Nonesuch, Parlophone, Reprise, Roadrunner, Sire, Spinnin' Records, Warner Classics, and Warner Music Nashville.