Warner Music Group Corp. (NASDAQ:WMG) finished Wednesday with an addition of $0.35 to close at $33.07, an upside of 1.07 percent. An average of 2,230,680 shares of common stock have been traded in the last five days. There was a gain of $2.15 in the past week, and it reached a new high 15 times over the past 12 months. The last 20 days have seen an average of 2,132,855 shares traded, while the 50-day average volume stands at 1,922,152.
WMG stock has increased by 16.65% in the last month. The company shares reached their 1-month lowest point of $27.67 on 07/10/23. With the stock rallying to its 52-week high on 01/10/23, shares of the company touched a low of $21.57 and a high of $38.76 in 52 weeks. It has reached a new high 6 times so far this year and lost -5.57% or -$1.95 in price. In spite of this, the price is down -14.67% from the 52-week high.
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Insider Transactions
WMG stock investors should be aware that Warner Music Group Corp. (WMG) stock had its last reported insider trading activity 167 days ago on Feb 24. In this transaction, the insider spent $964,200. Director, Benet Lincoln E, disposed of 20,000 shares at a price of $32.00 on Feb 21. The insider now owns more than $640,000 worth of shares. Prior to that, Director Benet Lincoln E went on to Sale 15,000 shares at $34.03 each on Nov 30. An amount of $510,450 was transacted.
Valuation Metrics
Warner Music Group Corp. (WMG) has a trailing price-to-earnings (P/E) ratio of 40.43. The stock’s beta is 1.59. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.96, the price-to-book (PB) ratio at 67.49, and the price-to-cash flow ratio at 68.98.
The company has a payout ratio of 77.10%. The company’s most recent quarterly dividend payment was $0.16 a share, without any change from last year. Its latest increase dividend $0.01 reported on Friday August 12 2022.
Financial Health
The quick ratio of Warner Music Group Corp. for the three months ended June 29 was 0.70, and the current ratio was 0.70, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 15.82 and a total debt to equity ratio of 15.82 for the quarter ending June 29. Its gross profit as reported stood at $2.84 billion compared to revenue of $5.92 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Warner Music Group Corp.’s return on assets was 5.30%.
Earnings Surprise
For the three-month period that ended June 29, Warner Music Group Corp. had $3.99 billion in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $122.0 million in the quarter, while revenues were shrunk -1.64%. The analyst consensus anticipated Warner Music Group Corp.’s latest quarter earnings to come in at $0.2 per share, but it turned out to be $0.23, a 15.00% surprise. For the quarter, EBITDA amounted to $207.0 million. Shareholders own equity worth $515.98 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Warner Music Group Corp. (WMG) price momentum. RSI 9-day as of the close on 09 August was 71.67%, suggesting the stock is Overbought, with historical volatility in this time frame at 47.62%.
As of today, WMG’s price is $31.81 +6.95% or $2.15 from its 5-day moving average. WMG is currently trading +17.02% higher than its 20-day SMA and +9.87% higher than its 100-day SMA. However, the stock’s current price level is +32.49% above the SMA50 and +37.79% above the SMA200.
The stochastic %K and %D were 59.70% and 51.83%, respectively, and the average true range (ATR) was 1.16. With the 14-day stochastic at 78.35% and the average true range at 1.08, the RSI (14) stands at 70.57%. The stock has reached 0.47 on the 9-day MACD Oscillator while the 14-day reading was at 0.70.
Analyst Ratings
TD Cowen launched coverage on Warner Music Group Corp. (NASDAQ: WMG) in its analyst report released on July 25, 2023. The firm assigned the stock an Outperform rating. The consensus rating for Warner Music Group Corp. (WMG) among analysts is Overweight. According to current brokerage recommendations, 1 brokerage firm advise that investors sell WMG, while 8 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 10 others rate it as a “buy”.
What is WMG’s price target for the next 12 months?
Analysts predict a range of price targets between $15.40 and $40.00, with a median target of $34.50. Taking a look at these predictions, the average price target given by analysts for Warner Music Group Corp. (WMG) stock is $33.30.
