The stock of Warner Music Group Corp (NASDAQ: WMG) has increased by 2.10 when compared to last closing price of 31.22. Despite this, the company has experienced a 2.72% gain in its stock price over the last five trading sessions. benzinga.com reported 2024-10-04 that BofA Securities analyst Jessica Reif Ehrlich downgraded Warner Music Group Corp WMG from Neutral to Underperform and lowered the price target from $33 to $30.
Is It Worth Investing in Warner Music Group Corp (NASDAQ: WMG) Right Now?
The price-to-earnings ratio for Warner Music Group Corp (NASDAQ: WMG) is above average at 30.57x, Company’s 36-month beta value is 1.37.Analysts have differing opinions on the stock, with 7 analysts rating it as a “buy,” 3 as “overweight,” 7 as “hold,” and 1 as “sell.”
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The public float for WMG is 133.38M, and currently, short sellers hold a 9.79% ratio of that floaft. The average trading volume of WMG on October 16, 2024 was 1.84M shares.
WMG’s Market Performance
The stock of Warner Music Group Corp (WMG) has seen a 2.72% increase in the past week, with a 5.41% rise in the past month, and a -0.92% fall in the past quarter. The volatility ratio for the week is 1.21%, and the volatility levels for the past 30 days are at 1.84% for WMG. The simple moving average for the last 20 days is 2.41% for WMG stock, with a simple moving average of -0.80% for the last 200 days.
Analysts’ Opinion of WMG
Many brokerage firms have already submitted their reports for WMG stocks, with BofA Securities repeating the rating for WMG by listing it as a “Underperform.” The predicted price for WMG in the upcoming period, according to BofA Securities is $30 based on the research report published on October 04, 2024 of the current year 2024.
Wolfe Research, on the other hand, stated in their research note that they expect to see WMG reach a price target of $37. The rating they have provided for WMG stocks is “Outperform” according to the report published on July 12th, 2024.
Jefferies gave a rating of “Buy” to WMG, setting the target price at $38 in the report published on July 11th of the current year.
WMG Trading at 7.54% from the 50-Day Moving Average
After a stumble in the market that brought WMG to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -16.23% of loss for the given period.
Volatility was left at 1.84%, however, over the last 30 days, the volatility rate increased by 1.21%, as shares surge +4.71% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +13.16% upper at present.
During the last 5 trading sessions, WMG rose by +2.51%, which changed the moving average for the period of 200-days by -11.12% in comparison to the 20-day moving average, which settled at $31.12. In addition, Warner Music Group Corp saw -10.94% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at WMG starting from Lousada Max, who sale 250,769 shares at the price of $28.09 back on Sep 11 ’24. After this action, Lousada Max now owns 2,039,002 shares of Warner Music Group Corp, valued at $7,044,101 using the latest closing price.
Lousada Max, the CEO, Recorded Music of Warner Music Group Corp, sale 428,834 shares at $28.00 during a trade that took place back on Sep 10 ’24, which means that Lousada Max is holding 2,289,771 shares at $12,007,352 based on the most recent closing price.
Stock Fundamentals for WMG
Current profitability levels for the company are sitting at:
- 0.16 for the present operating margin
- 0.45 for the gross margin
The net margin for Warner Music Group Corp stands at 0.09. The total capital return value is set at 0.2. Equity return is now at value 141.10, with 6.35 for asset returns.
Based on Warner Music Group Corp (WMG), the company’s capital structure generated 0.89 points at debt to capital in total, while cash flow to debt ratio is standing at 0.2. The debt to equity ratio resting at 8.33. The interest coverage ratio of the stock is 6.69.
Currently, EBITDA for the company is 1.08 billion with net debt to EBITDA at 2.72. When we switch over and look at the enterprise to sales, we see a ratio of 3.16. The receivables turnover for the company is 5.22for trailing twelve months and the total asset turnover is 0.72. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.69.
Conclusion
In a nutshell, Warner Music Group Corp (WMG) has experienced a mixed performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
