An investigation into Warner Music Group Corp. (NASDAQ:WMG)’s technical aspects

The price of Warner Music Group Corp. (NASDAQ: WMG) closed at $35.47 in the last session, down -0.23% from day before closing price of $35.55. In other words, the price has decreased by -$0.08 from its previous closing price. On the day, 964241 shares were traded. WMG stock price reached its highest trading level at $36.11 during the session, while it also had its lowest trading level at $35.33.

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We take a closer look at WMG’s different ratios to gain a better understanding of the stock. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 30.24 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 61.11. For the most recent quarter (mrq), Quick Ratio is recorded 0.60 and its Current Ratio is at 0.60. In the meantime, Its Debt-to-Equity ratio is 24.55 whereas as Long-Term Debt/Eq ratio is at 24.55.

Upgrades & Downgrades

On January 13, 2023, Guggenheim Downgraded its rating to Neutral which previously was Buy but kept the price unchanged to $35.

Atlantic Equities Upgraded its Neutral to Overweight on December 19, 2022, whereas the target price for the stock was revised from $34 to $41.

Insider Transactions:

An investor can also benefit from insider trades by learning what management is thinking about the future direction of stock prices. A recent insider transaction in this stock occurred on Nov 30 when Benet Lincoln E sold 15,000 shares for $34.03 per share. The transaction valued at 510,450 led to the insider holds 399,341 shares of the business.

Benet Lincoln E sold 20,000 shares of WMG for $646,400 on Nov 28. The Director now owns 414,341 shares after completing the transaction at $32.32 per share. On Mar 30, another insider, Benet Lincoln E, who serves as the Director of the company, sold 10,000 shares for $38.25 each. As a result, the insider received 382,500 and left with 434,341 shares of the company.

Valuation Measures:

As of this moment, Warner’s Price-to-Earnings (P/E) ratio for their current fiscal year is 33.56, and their Forward P/E ratio for the next fiscal year is 27.37. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 2.16. For the stock, the TTM Price-to-Sale (P/S) ratio is 2.98 while its Price-to-Book (P/B) ratio in mrq is 118.23.

Stock Price History:

Over the past 52 weeks, WMG has reached a high of $44.64, while it has fallen to a 52-week low of $21.57. The 50-Day Moving Average of the stock is 33.33, while the 200-Day Moving Average is calculated to be 29.20.

Shares Statistics:

According to the various share statistics, WMG traded on average about 1.57M shares per day over the past 3-months and 2.03M shares per day over the past 10 days. A total of 514.82M shares are outstanding, with a floating share count of 114.33M. Insiders hold about 0.30% of the company’s shares, while institutions hold 89.40% stake in the company. Shares short for WMG as of Oct 13, 2022 were 5.87M with a Short Ratio of 5.85M, compared to 5.03M on Sep 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 1.14% and a Short% of Float of 5.44%.

Dividends & Splits

The forward annual dividend rate for WMG is 0.64, which was 0.51 in the trailing 12 months. Against a Trailing Annual Dividend Yield of 1.43%, it implies a Forward Annual Dividend Yield of 2.37%.

Earnings Estimates

The company has 14 analysts who recommend its stock at the moment. On average, analysts expect EPS of $0.14 for the current quarter, with a high estimate of $0.23 and a low estimate of $0.06, while EPS last year was $0.05. The consensus estimate for the next quarter is $0.33, with high estimates of $0.53 and low estimates of $0.27.

Analysts are recommending an EPS of between $1.04 and $0.68 for the fiscal current year, implying an average EPS of $0.9. EPS for the following year is $1.03, with 16 analysts recommending between $1.43 and $0.87.

Revenue Estimates

According to 13 analysts, the current quarter’s revenue is expected to be $1.42B. It ranges from a high estimate of $1.48B to a low estimate of $1.39B. As of the current estimate, Warner Music Group Corp.’s year-ago sales were $1.38B, an estimated increase of 3.40% from the year-ago figure.

A total of 18 analysts have provided revenue estimates for WMG’s current fiscal year. The highest revenue estimate was $5.97B, while the lowest revenue estimate was $5.81B, resulting in an average revenue estimate of $5.85B. In the same quarter a year ago, actual revenue was $5.3B, up 10.30% from the average estimate. Based on 18 analysts’ estimates, the company’s revenue will be $6.2B in the next fiscal year. The high estimate is $6.72B and the low estimate is $5.94B. The average revenue growth estimate for next year is up 6.00% from the average revenue estimate for this year.