Warner Music Group Corp. [WMG] stock Upgrade by Jefferies analyst, price target now $50


Warner Music Group Corp. [NASDAQ: WMG] loss -3.91% on the last trading session, reaching $41.27 price per share at the time. The company report on January 4, 2022 that Warner Music Group Announces Pricing of Secondary Offering by Affiliates of Access Industries.

Warner Music Group Corp. (“Warner Music Group”) (Nasdaq: WMG) today announced the pricing of an underwritten secondary offering (the “offering”) of an aggregate of 8,562,500 shares of Warner Music Group’s Class A common stock (“common stock”) by affiliates of Access Industries, LLC, at a price to the public of $41.00 per share. The offering is expected to close on January 6, 2022. Warner Music Group is not selling any shares of common stock in the offering and will not receive any of the proceeds.

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Morgan Stanley is acting as the underwriter for the offering.

If compared to the average trading volume of 882.13K shares, WMG reached a trading volume of 6943027 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Warner Music Group Corp. [WMG]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for WMG shares is $47.59 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on WMG stock is a recommendation set at 2.40. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Jefferies have made an estimate for Warner Music Group Corp. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on January 04, 2022. The new note on the price target was released on December 13, 2021, representing the official price target for Warner Music Group Corp. stock. Previously, the target price had yet another drop from $53 to $42, while BofA Securities kept a Underperform rating on WMG stock.

The Average True Range (ATR) for Warner Music Group Corp. is set at 1.43, with the Price to Sales ratio for WMG stock in the period of the last 12 months amounting to 4.03. The Price to Book ratio for the last quarter was 687.83, with the Price to Cash per share for the same quarter was set at 0.97. Price to Free Cash Flow for WMG in the course of the last twelve months was 76.21 with Quick ratio for the last quarter at 0.60.

Trading performance analysis for WMG stock

Warner Music Group Corp. [WMG] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -4.93. With this latest performance, WMG shares dropped by -1.43% in over the last four-week period, additionally plugging by 11.87% over the last 6 months – not to mention a rise of 11.57% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for WMG stock in for the last two-week period is set at 40.33, with the RSI for the last a single of trading hit 36.28, and the three-weeks RSI is set at 42.36 for Warner Music Group Corp. [WMG]. The present Moving Average for the last 50 days of trading for this stock 44.39, while it was recorded at 42.82 for the last single week of trading, and 39.40 for the last 200 days.

Warner Music Group Corp. [WMG]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Warner Music Group Corp. [WMG] shares currently have an operating margin of +12.22 and a Gross Margin at +42.50. Warner Music Group Corp.’s Net Margin is presently recorded at +5.66.

Return on Total Capital for WMG is now 18.20, given the latest momentum, and Return on Invested Capital for the company is 8.68. When it comes to the capital structure of this company, Warner Music Group Corp. [WMG] has a Total Debt to Total Equity ratio set at 11,858.06. Additionally, WMG Total Debt to Total Capital is recorded at 99.16, with Total Debt to Total Assets ending up at 50.98. Long-Term Debt to Equity for the company is recorded at 11,719.35, with the Long-Term Debt to Total Capital now at 98.00.

Receivables Turnover for the company is 6.59 with a Total Asset Turnover recorded at a value of 0.78.Warner Music Group Corp.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.60 and a Current Ratio set at 0.60.

Warner Music Group Corp. [WMG]: An earnings per share (EPS) analysis

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for WMG. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Warner Music Group Corp. go to 35.42%.

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An analysis of insider ownership at Warner Music Group Corp. [WMG]

There are presently around $4,069 million, or 77.50% of WMG stock, in the hands of institutional investors. The top three institutional holders of WMG stocks are: SANDS CAPITAL MANAGEMENT, LLC with ownership of 13,473,812, which is approximately -0.66% of the company’s market cap and around 2.30% of the total institutional ownership; VANGUARD GROUP INC, holding 8,145,315 shares of the stock with an approximate value of $349.84 million in WMG stocks shares; and FMR LLC, currently with $311.09 million in WMG stock with ownership of nearly 13.969% of the company’s market capitalization.

Positions in Warner Music Group Corp. stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 105 institutional holders increased their position in Warner Music Group Corp. [NASDAQ:WMG] by around 16,725,622 shares. Additionally, 60 investors decreased positions by around 8,727,107 shares, while 21 investors held positions by with 69,295,513 shares. The mentioned changes placed institutional holdings at 94,748,242 shares, according to the latest SEC report filing. WMG stock had 41 new institutional investments in for a total of 7,310,237 shares, while 22 institutional investors sold positions of 4,507,309 shares during the same period.