As of Friday close, Warner Music Group Corp.’s (NASDAQ:WMG) stock was down -$0.34, moving down -1.04 percent to $32.49. The average number of shares traded per day over the past five days has been 1,547,360 shares. 2 times new highs have been achieved over the past 5 days, with a -$0.41 fall in that time frame. In the last twenty days, the average volume was 1,872,945, while in the previous 50 days, it was 1,824,626.
Since last month, WMG stock rose 6.25%. Shares of the company fell to $29.43 on 07/20/23, the lowest level in the past month. A 52-week high of $38.76 was reached on 01/10/23 after having rallying from a 52-week low of $21.57. Since the beginning of this year, WMG’s stock price has dropped by -7.22% or -$2.53, and marked a new high 6 times. However, the stock has declined by -16.17% since its 52-week high.
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WMG stock investors should be aware that Warner Music Group Corp. (WMG) stock had its last reported insider trading activity 176 days ago on Feb 24. Benet Lincoln E, the Director of the company, disposed of 30,000 shares for $32.14 on Feb 24. It resulted in a $964,200 divestment by the insider. Benet Lincoln E sold 20,000 shares at an average price of $32.00 on Feb 21. The insider now owns 379,341 shares following the transaction. On Nov 30, Director Benet Lincoln E sold 15,000 shares at $34.03 apiece. The transaction was valued at $510,450.
Valuation Metrics
Right now, Warner Music Group Corp. (WMG) has a P/E ratio of about 39.96. The stock’s beta is 1.54. Besides these, the trailing price-to-sales (P/S) ratio of 2.81, the price-to-book (PB) ratio of 60.17, and the price-to-cash flow ratio of 29.77 may also be considered.
The latest dividend of $0.17 per share was paid out, which is 6.25% more than last year’s $0.16. On Friday August 18 2023, a $0.01 dividend increase was announced.
Financial Health
In the three months ended June 29, Warner Music Group Corp.’s quick ratio stood at 0.70, while its current ratio was 0.70, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 14.19, and the total debt-to-equity ratio was 14.19. On the profitability front, the trailing twelve-month gross margin is 47.40% percent. In the year ended June 29, EBITDA margin amounted to 18.30%, whereas operating margins totaled 12.40%. Based on annual data, WMG earned $2.84 billion in gross profit and brought in $5.92 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 13.60%. Return on equity (ROE) for the past 12 months was 175.50%.
In Warner Music Group Corp.’s quarter-end financial report for June 29, it reported total debt of $3.99 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. WMG’s revenue rose 8.44% to $1.4 billion during the quarter, while net income inched up to $1.56 billion. While analysts expected Warner Music Group Corp. to report $0.2 quarterly earnings, the actual figure was $0.23 per share, beating the consensus estimate by 15.00%. During the quarter, the company generated $275.0 million in EBITDA. The liabilities of Warner Music Group Corp. were 7.85 billion at the end of its most recent quarter ended June 29, and its total debt was $4.29 billion. The value of shareholders’ equity is $515.99 million.
Technical Picture
This quick technical analysis looks at Warner Music Group Corp.’s (WMG) price momentum. With a historical volatility rate of 46.30%, the RSI 9-day stood at 54.47% on 18 August.
With respect to its five-day moving average, the current Warner Music Group Corp. price is down by -1.25% percent or -$0.41. At present, WMG shares trade +4.71% above its 20-day simple moving average and +1.98% percent above its 100-day simple moving average. However, the stock is currently trading approximately +30.90% above its SMA50 and +24.87% above its SMA200.
Stochastic coefficient K was 70.75% and Stochastic coefficient D was 75.37%, while ATR was 1.01. Given the Stochastic reading of 57.36% for the 14-day period, the RSI (14) reading has been calculated as 58.73%.
Analyst Ratings
TD Cowen launched its rating on Warner Music Group Corp. (NASDAQ: WMG) to an Outperform in a note to investors on July 25, 2023. Warner Music Group Corp. (WMG) has been rated Overweight by analysts. According to 1 brokerage firm, WMG is a sell, and 8 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate Warner Music Group Corp. stock as buy, with 10 recommending it as overweight.
With a median target price of $36.00, the current consensus forecast for the stock is $15.40 – $40.00. Based on these forecasts, analysts predict Warner Music Group Corp. (WMG) will achieve an average price target of $34.91.
