What’s best: jumping in or staying out? Warner Music Group Corp (WMG) Stock

Morgan Stanley raised the price target for the Warner Music Group Corp (NASDAQ:WMG) stock to “an Overweight”. The rating was released on May 06, 2024, according to finviz. We previously noted in another research note published on February 05, 2024 by Redburn Atlantic that upgraded the stock from a Sell to a Neutral with a price target of $21 for WMG stock. The research report from Wells Fargo has initiated the stock to Equal Weight, with a price target set at $35. The stock was upgraded by UBS, who disclosed in a research note on October 03, 2023, from Neutral to Buy and set the price objective to $37. In their research brief published July 25, 2023, TD Cowen analysts initiated the Warner Music Group Corp stock to Outperform with a price target of $38.

The latest trade, Performances and Moving Averages give us the following Picture

The firm’s stock price fluctuated -0.72% within the last five trades and -6.17% within the last 30 trades, which was a significant change from the beginning of this year. Despite the fact that the share price decreased -12.67% in the last 6 months and -8.21% was subtracted to its value over the previous 3 months. WMG stock is trading at a margin of -0.36%, -5.37% and -8.73% apart from the 20-Day, 50-Day and 200-Day Simple Moving Average prices.


As of the close of trading, WMG deals in the Communication Services domain. The stock is trading -20.11 percent below its 52-week high and 20.25 percent above its 52-week low. For example, looking both at the price and the high and low measurements of 52 weeks will give you a clearer picture of the direction the price is heading. The firm’s Weighted Alpha is 5.35. A positive weighted alpha indicates the firm has done well over the course of the year, whereas one below 0 indicates that the firm has done poorly.

What Does Warner Music Group Corp’s Profitability and Valuation Ratios Tell Us About the Stock?

With regard to the profitability of the company, the operating margin is currently at 15.64 percent and the profit margin is 8.17 percent, and the company has reported a gross margin of 42.19 percent. The profit margin, also known as the revenue ratio or gross profit ratio, is an efficiency figure used to estimate the business’s profitability by comparing net income and sales. The higher the number, the more profits are generated for the company and vice versa.

The stock’s market cap achieved a total value of $15.74 billion as of the last trading session. Market capitalization is the total value of all outstanding shares of a corporation and it is used to measure a company’s market value. The price-to-earnings ratio for Warner Music Group Corp (NASDAQ:WMG) is 30.08. The price-to-earnings ratio is a method of assessing corporate values by comparing them to their per-share profit. Forward P/E stands at 20.70. Forward price-to-earnings is calculated using predicted earnings for the next financial year’s P/E determination. The stock has achieved an effective Price-to-Sales Ratio of 2.46 that mirrors the cost to be found for sales by the market. The firm managed a Price-to-Book ratio of 36.36, which equates the market value of a stock with its book value.

Is Insider Trading a Real Thing?

Almost all investors and traders prefer to invest in shares controlled by the management of a corporation as a management company will be more likely to run the business itself and to never conduct things against the management’s desires and will always try to do what is best for their shareholders. Currently, 74.13 percent of Warner Music Group Corp shares are owned by insiders, and 24.82 percent are held by financial institutions. Benet Lincoln E, the Director at Warner Music Group Corp (WMG) has sold 71,981 shares of firm on Feb 15 ’24 at a price of $36.12 against the total amount of $2.6 million. In another inside trade, Lousada Max, CEO, Recorded Music of Warner Music Group Corp (NASDAQ:WMG) sold 869,008 shares of the firm on Dec 05 ’23 for a total worth of $28.99 million at a price of $33.36.

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