Scientech Research LLC, a prominent institutional investor, recently disclosed its new stake in Warner Music Group Corp. (NASDAQ:WMG). This acquisition in the 2nd quarter included 19,530 shares of the company’s stock, valued at around $599,000. The move by Scientech Research LLC highlights the growing interest in the music entertainment industry among institutional investors.
Other hedge funds and institutional investors have also made significant changes to their holdings in Warner Music Group. For example, Capital World Investors increased its stake in the company by 41.7% in the first quarter, now owning over 13 million shares valued at $435.9 million. Vanguard Group Inc. also boosted its holdings by 1.6% in the 1st quarter, owning over 11 million shares valued at $391.7 million. Darlington Partners Capital Management LP saw a 47.4% growth in their position in the 2nd quarter, now owning over 8 million shares worth $247.4 million. Independent Franchise Partners LLP also acquired a new position in the 2nd quarter, valued at approximately $160.2 million. FIL Ltd increased its position by 85.6% during the fourth quarter, owning over 5 million shares valued at $186.1 million. Overall, institutional investors currently own 96.88% of Warner Music Group’s stock.
Warner Music Group Corp.’s stock experienced a slight decline of 0.1% with an opening price of $31.20 on Friday. The company has a market capitalization of $16.16 billion, a P/E ratio of 31.20, and a beta of 1.37. Warner Music Group’s stock has seen a 12-month low of $27.06 and a high of $38.05. The firm’s fifty-day simple moving average is $29.21, and its 200-day simple moving average is $31.01. Warner Music Group reported its quarterly earnings results on Wednesday, August 7th, with an EPS of $0.27, exceeding the consensus estimate of $0.25. The company generated revenue of $1.55 billion for the quarter, slightly below analyst estimates of $1.58 billion. Warner Music Group had a net margin of 8.56% and a return on equity of 101.32%. Analysts anticipate that Warner Music Group Corp. will post 1.04 earnings per share for the current year.
In a positive development for investors, Warner Music Group recently announced an increase in its quarterly dividend, which was paid on Wednesday, September 4th. Stockholders of record on Tuesday, August 27th received a dividend of $0.18 per share, higher than the previous quarterly dividend of $0.17. This represents a $0.72 dividend on an annualized basis and a dividend yield of 2.31%. Warner Music Group’s dividend payout ratio (DPR) is 72.00%.
Several equities analysts have issued reports on WMG shares, with varying price targets and ratings. Tigress Financial lowered their price target on Warner Music Group from $52.00 to $44.00, maintaining a “buy” rating on the stock. Evercore ISI reduced their target price from $40.00 to $36.00 and assigned an “outperform” rating. Wells Fargo & Company decreased their price target from $37.00 to $34.00, with an “equal weight” rating. Jefferies Financial Group initiated coverage on Warner Music Group with a “buy” rating and a $38.00 price target. Wolfe Research also started coverage with an “outperform” rating and a $37.00 price target. Overall, Warner Music Group currently has a consensus rating of “Moderate Buy” and a consensus target price of $36.92.
In terms of insider activity, CEO Max Lousada recently sold 64,047 shares of Warner Music Group’s stock on Tuesday, September 3rd. The shares were sold at an average price of $28.25, totaling $1,809,327.75. Following the sale, the chief executive officer now owns 2,909,422 shares of the company’s stock, valued at $82,191,171.50. Insiders have sold a total of 628,205 shares of company stock worth $17,628,757 in the last 90 days. Corporate insiders currently own 73.35% of the company’s stock.
Warner Music Group Corp. operates as a music entertainment company globally, with a focus on the discovery and development of recording artists, marketing, promotion, distribution, sale, and licensing of music. The Recorded Music segment manages a collection of record labels such as Warner Records, Atlantic Records, and others. The Music Publishing segment is involved in the discovery and development of songwriters and the promotion, administration, and exploitation of music publishing rights.
Overall, Warner Music Group’s recent developments, including new institutional investments, dividend increases, and analyst ratings, indicate a positive outlook for the company in the music entertainment industry. Investors and analysts continue to closely monitor Warner Music Group’s performance and growth prospects in the market.
