Warner Music Group Corp. [WMG] is -41.20% lower this YTD. Is it still time to buy?


Warner Music Group Corp. [NASDAQ: WMG] closed the trading session at $25.39 on 05/11/22. The day’s price range saw the stock hit a low of $24.39, while the highest price level was $26.00. The company report on May 10, 2022 that Warner Music Group Corp. Reports Results for Fiscal Second Quarter Ended March 31, 2022.

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Financial Highlights.

The stocks have a year to date performance of -41.20 percent and weekly performance of -17.30 percent. The stock has been moved at -47.16 percent over the last six months. The stock has performed -31.54 percent around the most recent 30 days and changed -34.15 percent over the most recent 3-months.

If compared to the average trading volume of 1.71M shares, WMG reached to a volume of 3986730 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say 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 $43.35 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 2.30. 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.

Redburn have made an estimate for Warner Music Group Corp. shares, keeping their opinion on the stock as Sell, with their previous recommendation back on April 25, 2022. While these analysts kept the previous recommendation, Deutsche Bank raised their target price to Buy. The new note on the price target was released on March 11, 2022, representing the official price target for Warner Music Group Corp. stock. Previously, the target price had yet another raise from $41 to $50, while Jefferies kept a Buy rating on WMG stock.

The Average True Range (ATR) for Warner Music Group Corp. is set at 1.63, with the Price to Sales ratio for WMG stock in the period of the last 12 months amounting to 2.34. The Price to Book ratio for the last quarter was 84.63, with the Price to Cash per share for the same quarter was set at 0.87. Price to Free Cash Flow for WMG in the course of the last twelve months was 62.82 with Quick ratio for the last quarter at 0.60.

WMG stock trade performance evaluation

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 -17.30. With this latest performance, WMG shares dropped by -31.54% in over the last four-week period, additionally sinking by -47.16% over the last 6 months – not to mention a drop of -26.96% 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 22.02, with the RSI for the last a single of trading hit 16.47, and the three-weeks RSI is set at 26.99 for Warner Music Group Corp. [WMG]. The present Moving Average for the last 50 days of trading for this stock 33.85, while it was recorded at 27.34 for the last single week of trading, and 39.56 for the last 200 days.

Warner Music Group Corp. [WMG]: An insightful look at the core fundamentals

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.

Earnings per share (EPS) analysis for Warner Music Group Corp. [WMG] stock

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 40.11%.

Warner Music Group Corp. [WMG]: Insider Ownership positions

There are presently around $2,740 million, or 78.50% of WMG stock, in the hands of institutional investors. The top three institutional holders of WMG stocks are: FMR LLC with ownership of 12,068,537, which is approximately 66.62% of the company’s market cap and around 5.50% of the total institutional ownership; SANDS CAPITAL MANAGEMENT, LLC, holding 11,553,443 shares of the stock with an approximate value of $297.85 million in WMG stocks shares; and VANGUARD GROUP INC, currently with $220.05 million in WMG stock with ownership of nearly 4.794% of the company’s market capitalization.

Positions in Warner Music Group Corp. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 96 institutional holders increased their position in Warner Music Group Corp. [NASDAQ:WMG] by around 23,206,054 shares. Additionally, 96 investors decreased positions by around 11,917,223 shares, while 24 investors held positions by with 71,173,677 shares. The mentioned changes placed institutional holdings at 106,296,954 shares, according to the latest SEC report filing. WMG stock had 42 new institutional investments in for a total of 9,742,776 shares, while 37 institutional investors sold positions of 1,355,562 shares during the same period.