The stock of Warner Music Group Corp (WMG) has gone down by -1.61% for the week, with a 1.16% rise in the past month and a 11.65% rise in the past quarter. The volatility ratio for the week is 5.10%, and the volatility levels for the past 30 days are 2.85% for WMG. The simple moving average for the past 20 days is -0.51% for WMG’s stock, with a 2.42% simple moving average for the past 200 days.
Is It Worth Investing in Warner Music Group Corp (NASDAQ: WMG) Right Now?
Warner Music Group Corp (NASDAQ: WMG) has a higher price-to-earnings ratio of 39.07x compared to its average ratio. WMG has 36-month beta value of 1.35. Analysts have mixed views on the stock, with 8 analysts rating it as a “buy,” 5 as “overweight,” 7 as “hold,” and 1 as “sell.”
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The public float for WMG is 134.34M, and currently, short sellers hold a 7.29% ratio of that float. The average trading volume of WMG on November 27, 2024 was 1.54M shares.
WMG) stock’s latest price update
Warner Music Group Corp (NASDAQ: WMG)’s stock price has increased by 1.09 compared to its previous closing price of 32.05. However, the company has seen a -1.61% decrease in its stock price over the last five trading sessions. seekingalpha.com reported 2024-11-23 that Warner Music Group’s Q4 earnings report failed to impress, leading to a significant stock drop and highlighting concerns about its competitive position in the music industry. Despite solid revenue growth and a $100M share buyback, WMG struggles as industry peers like Spotify and Live Nation capture investor mind share. Analysts question WMG’s ability to leverage pricing strategy and product innovation to boost growth, with management’s responses lacking concrete, exciting plans.
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 1.68% 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 -14.85% of loss for the given period.
Volatility was left at 2.85%, however, over the last 30 days, the volatility rate increased by 5.10%, as shares surge +0.62% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +7.14% upper at present.
During the last 5 trading sessions, WMG fell by -1.61%, which changed the moving average for the period of 200-days by -10.89% in comparison to the 20-day moving average, which settled at $32.56. In addition, Warner Music Group Corp saw -9.47% 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:
- 0.15 for the present operating margin
- 0.46 for the gross margin
The net margin for Warner Music Group Corp stands at 0.07. The total capital return value is set at 0.18. Equity return is now at value 104.00, with 4.85 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 0.18. The debt to equity ratio resting at 8.28. The interest coverage ratio of the stock is 5.9.
Currently, EBITDA for the company is 1.09 billion with net debt to EBITDA at 3.0. When we switch over and look at the enterprise to sales, we see a ratio of 3.17. The receivables turnover for the company is 5.12for trailing twelve months and the total asset turnover is 0.7. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.68.
Conclusion
To put it simply, Warner Music Group Corp (WMG) has had a mixed performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
