Tidal Investments LLC Raises Holdings in Warner Music Group Corp. $WMG

Tidal Investments LLC raised its holdings in shares of Warner Music Group Corp. (NASDAQ:WMG) by 1,072.2% during the second quarter, according to its most recent filing with the SEC. The firm owned 580,609 shares of the company’s stock after purchasing an additional 531,077 shares during the period. Tidal Investments LLC’s holdings in Warner Music Group were worth $15,717,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of the business. Continuum Advisory LLC bought a new position in Warner Music Group in the second quarter worth approximately $25,000. Quarry LP bought a new stake in Warner Music Group during the 4th quarter valued at $40,000. Caitong International Asset Management Co. Ltd boosted its position in Warner Music Group by 774.6% during the 3rd 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 in the last quarter. Osaic Holdings Inc. increased its holdings in shares of Warner Music Group by 480.9% in the 2nd 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, Parallel Advisors LLC increased its holdings in shares of Warner Music Group by 355.7% in the 4th quarter. Parallel Advisors LLC now owns 1,531 shares of the company’s stock valued at $47,000 after acquiring an additional 1,195 shares during the period. 96.88% of the stock is owned by hedge funds and other institutional investors.

Warner Music Group Stock Down 1.1%

Shares of NASDAQ WMG opened at $27.84 on Friday. The company has a quick ratio of 0.72, a current ratio of 0.73 and a debt-to-equity ratio of 4.94. Warner Music Group Corp. has a 52-week low of $23.34 and a 52-week high of $35.42. The firm has a market cap of $14.56 billion, a price-to-earnings ratio of 22.10, a price-to-earnings-growth ratio of 0.48 and a beta of 1.31. The company’s 50-day simple moving average is $27.50 and its 200-day simple moving average is $28.31.

Warner Music Group (NASDAQ:WMG) last announced its earnings results on Wednesday, August 5th. The company reported $0.51 EPS for the quarter, beating analysts’ consensus estimates of $0.34 by $0.17. Warner Music Group had a return on equity of 85.50% and a net margin of 9.20%.The business had revenue of $1.86 billion during the quarter, compared to analysts’ expectations of $1.81 billion. During the same quarter in the prior year, the firm earned ($0.03) earnings per share. The business’s revenue was up 10.4% compared to the same quarter last year. Equities analysts predict that Warner Music Group Corp. will post 1.46 EPS for the current fiscal year.

Warner Music Group Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 1st. Investors of record on Thursday, August 20th were paid a dividend of $0.20 per share. The ex-dividend date of this dividend was Thursday, August 20th. This represents a $0.80 annualized dividend and a yield of 2.9%. This is a boost from Warner Music Group’s previous quarterly dividend of $0.19. Warner Music Group’s dividend payout ratio is currently 63.49%.

Key Warner Music Group News

Here are the key news stories impacting Warner Music Group this week:

• Positive Sentiment: Warner partners with Suno on licensed AI music. Suno launched its v6 AI music models using licensed music from WMG, BMG and Believe, allowing users to generate new works inspired by participating artists. The agreement gives Warner a way to monetize its catalog in the fast-growing AI music market while establishing a legal framework for training models on copyrighted music. Reuters article
• Positive Sentiment: Management characterized the arrangement as a strategic win. Warner Music CEO Robert Kyncl reportedly said the partnership can expand opportunities for artists and songwriters and help grow revenue tied to music creation. Such comments reinforce the potential for new licensing, royalty and platform-related income beyond traditional streaming. Billboard article
• Neutral Sentiment: Reported short-interest data appears invalid. The September 10 report lists zero shares sold short, unchanged from zero previously, while also showing an undefined percentage change. With a stated days-to-cover ratio of zero, the data does not provide a reliable signal about short-selling pressure or potential short-covering activity.
• Neutral Sentiment: Key risks remain. Investors will likely watch how much revenue the Suno deal generates, whether AI-created music competes with Warner’s existing catalog and how artists respond to the use of licensed material. The partnership reduces some copyright uncertainty, but it does not eliminate execution or cannibalization risks.

Analysts Set New Price Targets

A number of brokerages recently weighed in on WMG. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Warner Music Group in a research report on Wednesday, June 24th. Zacks Research cut Warner Music Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, June 22nd. Morgan Stanley reaffirmed an “overweight” rating and issued a $36.00 price objective on shares of Warner Music Group in a report on Thursday, August 6th. Finally, Wall Street Zen cut Warner Music Group from a “buy” rating to a “hold” rating in a research report on Saturday, July 18th. Twelve investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $38.25.

Warner Music Group Profile

Warner Music Group Corp. is a global music entertainment company that operates through two principal businesses: recorded music and music publishing. Its recorded-music operations discover, develop, market and distribute music from a broad roster of artists through labels including Warner Records, Atlantic Records, Elektra Music Group and Parlophone.

The company’s music publishing business, Warner Chappell Music, manages and administers copyrights for songwriters and composers. Warner Music Group also provides artist and label services, digital distribution, licensing, marketing, physical and digital sales, and other services that support the commercial use of recorded music and musical compositions.

Warner Music Group serves artists, songwriters, labels, streaming platforms, broadcasters, brands and other music-industry partners in markets around the world.