Warner Music Group (NASDAQ:WMG) Earns “Buy” Rating from Guggenheim

Warner Music Group (NASDAQ:WMG)‘s stock had its “buy” rating reiterated by research analysts at Guggenheim in a report issued on Tuesday, Benzinga reports. They currently have a $36.00 target price on the stock. Guggenheim’s price objective points to a potential upside of 28.89% from the stock’s current price.

WMG has been the topic of a number of other research reports. Weiss Ratings restated a “hold (c)” rating on shares of Warner Music Group in a research report on Monday, September 21st. Wall Street Zen downgraded Warner Music Group from a “buy” rating to a “hold” rating in a report on Saturday, July 18th. Zacks Research downgraded Warner Music Group from a “strong-buy” rating to a “hold” rating in a report on Monday, June 22nd. Finally, Morgan Stanley reiterated an “overweight” rating and issued a $36.00 price objective on shares of Warner Music Group in a report on Thursday, August 6th. Twelve equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, Warner Music Group presently has an average rating of “Moderate Buy” and an average target price of $38.25.

Warner Music Group Price Performance

Shares of NASDAQ:WMG traded up $0.79 during trading on Tuesday, reaching $27.93. The stock had a trading volume of 1,000,010 shares, compared to its average volume of 2,289,704. Warner Music Group has a 1-year low of $23.34 and a 1-year high of $35.42. The company has a debt-to-equity ratio of 4.94, a quick ratio of 0.72 and a current ratio of 0.73. The stock has a market cap of $14.61 billion, a PE ratio of 22.15, a PEG ratio of 0.46 and a beta of 1.31. The business has a fifty day moving average price of $27.38 and a 200-day moving average price of $28.31.

Warner Music Group (NASDAQ:WMG) last posted 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 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 business earned ($0.03) earnings per share. The company’s revenue for the quarter was up 10.4% on a year-over-year basis. On average, equities analysts forecast that Warner Music Group will post 1.45 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in WMG. Tidal Investments LLC raised its position in Warner Music Group by 1,072.2% in the second quarter. Tidal Investments LLC now owns 580,609 shares of the company’s stock worth $15,717,000 after purchasing an additional 531,077 shares in the last quarter. Darsana Capital Partners LP raised its position in Warner Music Group by 0.8% in the second quarter. Darsana Capital Partners LP now owns 11,943,199 shares of the company’s stock worth $323,302,000 after purchasing an additional 93,199 shares in the last quarter. Engineers Gate Manager LP grew its stake in Warner Music Group by 97.8% during the second quarter. Engineers Gate Manager LP now owns 103,176 shares of the company’s stock worth $2,793,000 after buying an additional 51,017 shares during the last quarter. Squarepoint Ops LLC grew its stake in Warner Music Group by 6.0% during the second quarter. Squarepoint Ops LLC now owns 54,270 shares of the company’s stock worth $1,469,000 after buying an additional 3,089 shares during the last quarter. Finally, Nykredit A S bought a new stake in Warner Music Group during the second quarter worth about $73,000. Institutional investors and hedge funds own 96.88% of the company’s stock.

About Warner Music Group

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.