Warner Music Group Corp. (NASDAQ:WMG) saw a downside of -0.83% to $30.91 after subtracting -$0.26 on Monday. The 5-day average trading volume is 1,330,073 shares of the company’s common stock. It has gained $31.83 in the past week and touched a new high 1 time within the past 5 days. An average of 1,933,113 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 1,847,045.
WMG’s 1-month performance is 10.35% or $3.01 on its low of $27.67 reached on 07/10/23. The company’s shares have touched a 52-week low of $21.57 and high of $38.76, with the stock’s rally to the 52-week high happening on 01/10/23. YTD, WMG has lost -11.74% or -$4.00 and has reached a new high 6 times. However, the current price is down -20.24% from the 52-week high price.
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Insider Transactions
WMG stock investors last saw insider trading activity on Feb 24.Benet Lincoln E (Director) most recently sold 30,000 shares at $32.14 per share on Feb 24. This transaction cost the insider $964,200. Director, Benet Lincoln E, sold 20,000 shares at a price of $32.00 on Feb 21. Then, on Nov 30, Director Benet Lincoln E sold 15,000 shares at a price of $34.03 per share. This transaction amounted to $510,450.
Valuation Metrics
WMG stock has a beta of 1.60. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 2.77 while the price-to-book (PB) in the most recent quarter is 63.08, with the price to cash flow ratio at 64.47.
Warner Music Group Corp.’s quick ratio for the period ended March 30 was 0.70, with the current ratio over the same period at 0.70. As well, the company’s long term debt to equity for the quarter ending March 30 was 15.82, while the total debt to equity was 15.82. In terms of profitability, the gross margin trailing 12 months is 47.60%. The trailing 12-month EBITDA margin is 18.30% while for the period ending March 30, Warner Music Group Corp.’s operating margin was 12.00%. The firm’s gross profit as reported stood at $2.84 billion against revenue of $5.92 billion.
Earnings Surprise
For the quarterly period ending March 30 this year, Net income and sales went down compared to those figures reported in the previous quarter. Net income shrunk -170.59% to $34.0 million, while revenue of $122.0 million was -258.82% off the previous quarter. Analysts expected WMG to announce $0.18 per share in earnings in its latest quarter, but it posted $0.06, representing a -66.70% surprise. EBITDA for the quarter stood at more than $207.0 million. WMG stock balance sheet for the quarter ending March 30 shows that total liabilities totaled 7.74 billion, with total debt at $4.27 billion. Shareholders hold equity totaling $515.98 million.
Let’s look briefly at Warner Music Group Corp. (WMG) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 04 August was 57.84% to suggest the stock is trending Neutral, with historical volatility in this time period at 35.70%.
The stock’s 5-day moving average is $31.21, reflecting a -1.68% or -$0.53 change from its current price. WMG is currently trading +11.10% above its 20-day SMA, +4.27% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +22.17% and SMA200 by+29.20%.
Stochastic %K and %D was 49.98% and 53.60% and the average true range (ATR) pointed at 0.88. The RSI (14) points at 61.84%, while the 14-day stochastic is at 40.98% with the period’s ATR at 0.89. The stock’s 9-day MACD Oscillator is pointing at -0.19 and 0.17 on the 14-day charts.
Analyst Ratings
In the most recent analyst report for Warner Music Group Corp. (NASDAQ: WMG), TD Cowen launched coverage with an Outperform rating. Analysts offering their rating for WMG stock have a consensus rating for the stock as Overweight. Currently, 1 brokerage advisors rate WMG as a “sell,”, while 7 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 0 rates the stock as overweight while 10 have offered a “buy” rating.
What is WMG’s price target for the next 12 months?
Analysts have a consensus price target ranging from a low of $15.40 and a high of $38.00, with their median price target at $31.50. Looking at these predictions, the average price target given by analysts is for Warner Music Group Corp. (WMG) stock is $30.97.
