Warner Music Group Corp. (NASDAQ:WMG) Short-term interest rates drop 16.3% in June


Warner Music Group Corp. (NASDAQ:WMG – Get Rating) was the target of a sharp drop in short-term interest rates in June. As of June 15, there was short interest totaling 3,480,000 shares, a decline of 16.3% from the total of 4,160,000 shares as of May 31. Based on an average daily trading volume of 1,450,000 shares, the day-to-cover ratio is currently 2.4 days. Currently, 3.0% of the company’s shares are sold short.

Large investors have recently changed their positions in the stock. Westpac Banking Corp bought a new stake in Warner Music Group during the fourth quarter for about $27,000. MBM Wealth Consultants LLC bought a new position in Warner Music Group stock in the first quarter worth $57,000. Mirabella Financial Services LLP bought a new position in Warner Music Group stock in the first quarter worth $230,000. Stephens Inc. AR increased its equity stake in Warner Music Group by 8.0% in the fourth quarter. Stephens Inc. AR now owns 5,847 shares of the company valued at $252,000 after purchasing an additional 432 shares in the last quarter. Finally, Capital Square LLC increased its equity stake in Warner Music Group by 38.9% in the first quarter. Capital Square LLC now owns 7,135 shares of the company valued at $270,000 after purchasing an additional 2,000 shares in the last quarter. 22.29% of the shares are currently held by hedge funds and other institutional investors.

Several research analysts have commented on WMG shares. Barclays reduced its price target on Warner Music Group from $49.00 to $37.00 in a Wednesday May 11 research report. Guggenheim raised its price target on Warner Music Group from $30.00 to $34.00 and gave the company a “buy” rating in a Friday, June 3 research report. Redburn Partners reissued a “sell” rating on Warner Music Group shares in a research report on Monday, April 25. Deutsche Bank Aktiengesellschaft assumed cover for Warner Music Group in a Friday, March 11 research report. They issued a “buy” rating and a price target of $42.00 on the stock. Finally, Truist Financial lowered its target price on Warner Music Group from $45.00 to $40.00 in a Monday, May 9 research report. Two equity research analysts rated the stock with a sell rating, one issued a hold rating and nine assigned the company a buy rating. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $43.58.

Shares of WMG opened at $24.57 on Tuesday. The company has a quick ratio of 0.58, a current ratio of 0.61 and a debt ratio of 22.13. The company has a 50-day moving average of $27.78 and a two-hundred-day moving average of $34.39. Warner Music Group has a 52-week low of $23.74 and a 52-week high of $50.23. The company has a market capitalization of $12.65 billion, a P/E ratio of 34.61, a PEG ratio of 0.95 and a beta of 1.41.

Warner Music Group (NASDAQ:WMG – Get Rating) last released its results on Tuesday, May 10. The company reported EPS of $0.18 for the quarter, missing analyst consensus estimates of $0.21 per ($0.03). The company posted revenue of $1.38 billion in the quarter, compared to analysts’ estimates of $1.37 billion. Warner Music Group had a net margin of 6.45% and a return on equity of 362.14%. The company’s revenue increased 10.1% year over year. In the same quarter a year earlier, the company earned earnings per share of $0.22. Analysts expect Warner Music Group to post EPS of 0.89 for the current fiscal year.

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, June 1. Shareholders of record on Monday, May 23 received a dividend of $0.15 per share. The ex-dividend date was Friday, May 20. This represents an annualized dividend of $0.60 and a dividend yield of 2.44%. Warner Music Group’s dividend payout ratio is currently 84.51%.

About Warner Music Group (Get a rating)

Warner Music Group Corp. operates as a music entertainment company in the United States, United Kingdom, Germany and internationally. The Company operates through the Recorded Music and Music Publishing segments. The Recorded Music segment is involved in the discovery and development of recording artists, as well as the related marketing, promotion, distribution, sale and licensing of music created by such recording artists; markets its music catalog through compilations and reissues of previously released music and video titles, as well as unreleased material; and operates primarily through a collection of record labels, such as Warner Records and Atlantic Records, as well as Asylum, Big Beat, Canvasback, East West, Erato, FFRR, Fueled by Ramen, Nonesuch, Parlophone, Reprise, Roadrunner, Sire, Spinnin’ Records, Warner Classics and Warner Music Nashville.

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