Warner Music Group Corp (NASDAQ: WMG)’s stock price has gone rise by 0.10 in comparison to its previous close of 29.56, however, the company has experienced a -4.61% decrease in its stock price over the last five trading days. globenewswire.com reported 2025-01-09 that NEW YORK, Jan. 09, 2025 (GLOBE NEWSWIRE) — Warner Music Group Corp. will release its financial results on Thursday, February 6, 2025, for the first quarter ended December 31, 2024, and will hold an earnings conference call that morning at 8:30 a.m. ET.
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 35.68x. The 36-month beta value for WMG is also noteworthy at 1.35. There are mixed opinions on the stock, with 7 analysts rating it as a “buy,” 5 rating it as “overweight,” 5 rating it as “hold,” and 1 rating it as “sell.”
The public float for WMG is 133.84M, and at present, short sellers hold a 4.50% of that float. The average trading volume of WMG on January 14, 2025 was 1.58M shares.
WMG’s Market Performance
WMG stock saw a decrease of -4.61% in the past week, with a monthly decline of -9.21% and a quarterly a decrease of -4.98%. The volatility ratio for the week is 3.44%, and the volatility levels for the last 30 days are 2.62% for Warner Music Group Corp (WMG). The simple moving average for the past 20 days is -4.45% for WMG’s stock, with a -5.16% simple moving average for the past 200 days.
Analysts’ Opinion of WMG
Many brokerage firms have already submitted their reports for WMG stocks, with Guggenheim repeating the rating for WMG by listing it as a “Buy.” The predicted price for WMG in the upcoming period, according to Guggenheim is $40 based on the research report published on January 08, 2025 of the current year 2025.
BofA Securities, on the other hand, stated in their research note that they expect to see WMG reach a price target of $30, previously predicting the price at $33. The rating they have provided for WMG stocks is “Underperform” according to the report published on October 04th, 2024.
Wolfe Research gave a rating of “Outperform” to WMG, setting the target price at $37 in the report published on July 12th of the previous year.
WMG Trading at -7.15% 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 -22.23% of loss for the given period.
Volatility was left at 2.62%, however, over the last 30 days, the volatility rate increased by 3.44%, as shares sank -9.71% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -7.54% lower at present.
During the last 5 trading sessions, WMG fell by -4.71%, which changed the moving average for the period of 200-days by -11.28% in comparison to the 20-day moving average, which settled at $30.97. In addition, Warner Music Group Corp saw -4.55% 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 Benet Lincoln E, who sale 35,000 shares at the price of $30.96 back on Dec 20 ’24. After this action, Benet Lincoln E now owns 242,360 shares of Warner Music Group Corp, valued at $1,083,600 using the latest closing price.
MAX GEORGE LOUSADA, the Affiliate of Warner Music Group Corp, proposed sale 385,475 shares at $32.48 during a trade that took place back on Dec 11 ’24, which means that MAX GEORGE LOUSADA is holding shares at $12,519,033 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 3.08. When we switch over and look at the enterprise to sales, we see a ratio of 2.95. 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
In summary, Warner Music Group Corp (WMG) has had a bad performance as of late. Analysts have bullish opinions on the stock, with some viewing 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.
