Warner Music Group (NASDAQ:WMG) Sets New 52-Week Low – What’s Next?

Warner Music Group Corp. (NASDAQ:WMG) shares hit a new 52-week low during mid-day trading on Wednesday . The company traded as low as $25.39 and last traded at $25.49, with a volume of 751709 shares. The stock had previously closed at $26.48.

Analyst Upgrades and Downgrades

WMG has been the subject of a number of recent research reports. Citigroup dropped their price objective on shares of Warner Music Group from $41.00 to $40.00 and set a “buy” rating for the company in a research note on Wednesday, January 21st. Bank of America lowered their target price on Warner Music Group from $36.00 to $33.00 and set a “neutral” rating on the stock in a report on Friday, November 21st. Sanford C. Bernstein reissued an “outperform” rating on shares of Warner Music Group in a report on Wednesday, January 14th. Wolfe Research reaffirmed an “outperform” rating and set a $36.00 price objective on shares of Warner Music Group in a research note on Monday, December 15th. Finally, Jefferies Financial Group dropped their price objective on Warner Music Group from $38.00 to $35.00 and set a “buy” rating for the company in a research report on Thursday, December 11th. Twelve research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $35.69.

Warner Music Group Price Performance

The company has a 50-day moving average of $29.14 and a two-hundred day moving average of $30.48. The company has a debt-to-equity ratio of 5.30, a current ratio of 0.70 and a quick ratio of 0.69. The stock has a market capitalization of $13.13 billion, a PE ratio of 43.34, a P/E/G ratio of 0.45 and a beta of 1.24.

Warner Music Group (NASDAQ:WMG) last posted its quarterly earnings results on Thursday, February 5th. The company reported $0.33 EPS for the quarter, missing the consensus estimate of $0.40 by ($0.07). Warner Music Group had a net margin of 4.43% and a return on equity of 38.33%. The business had revenue of $1.84 billion during the quarter, compared to analysts’ expectations of $1.77 billion. During the same quarter last year, the firm earned $0.45 EPS. The firm’s quarterly revenue was up 10.4% compared to the same quarter last year. Sell-side analysts predict that Warner Music Group Corp. will post 1.39 EPS for the current fiscal year.

Warner Music Group Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, March 3rd. Investors of record on Wednesday, February 18th were issued a $0.19 dividend. This represents a $0.76 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date was Wednesday, February 18th. Warner Music Group’s payout ratio is presently 131.03%.

Hedge Funds Weigh In On Warner Music Group

A number of large investors have recently bought and sold shares of WMG. Farther Finance Advisors LLC boosted its holdings in shares of Warner Music Group by 57.5% in the 3rd quarter. Farther Finance Advisors LLC now owns 879 shares of the company’s stock valued at $30,000 after purchasing an additional 321 shares during the last quarter. US Bancorp DE boosted its holdings in Warner Music Group by 23.5% in the third quarter. US Bancorp DE now owns 1,729 shares of the company’s stock valued at $59,000 after acquiring an additional 329 shares during the last quarter. Thrivent Financial for Lutherans grew its position in Warner Music Group by 1.1% during the second quarter. Thrivent Financial for Lutherans now owns 34,350 shares of the company’s stock valued at $936,000 after acquiring an additional 358 shares during the period. Federation des caisses Desjardins du Quebec increased its stake in Warner Music Group by 12.0% during the fourth quarter. Federation des caisses Desjardins du Quebec now owns 3,783 shares of the company’s stock worth $116,000 after acquiring an additional 405 shares during the last quarter. Finally, Patriot Financial Group Insurance Agency LLC raised its holdings in shares of Warner Music Group by 2.8% in the 3rd quarter. Patriot Financial Group Insurance Agency LLC now owns 16,268 shares of the company’s stock worth $554,000 after purchasing an additional 438 shares during the period. Hedge funds and other institutional investors own 96.88% of the company’s stock.

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.