Traders Purchase High Volume of Call Options on Warner Music Group (NASDAQ:WMG)

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Warner Music Group Corp. (NASDAQ:WMG) was the recipient of some unusual options trading activity on Thursday. Traders purchased 8,914 call options on the company. This is an increase of 1,198% compared to the average daily volume of 687 call options.

In other Warner Music Group news, major shareholder Ai Entertainment Holdings Llc sold 4,160,745 shares of the business’s stock in a transaction dated Wednesday, December 8th. The shares were sold at an average price of $41.25, for a total transaction of $171,630,731.25. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Insiders own 80.51% of the company’s stock.

Institutional investors have recently modified their holdings of the company. FMR LLC raised its stake in Warner Music Group by 162.2% during the 2nd quarter. FMR LLC now owns 6,355,360 shares of the company’s stock valued at $229,047,000 after purchasing an additional 3,931,904 shares during the last quarter. Lansdowne Partners UK LLP acquired a new position in Warner Music Group during the 2nd quarter valued at $43,920,000. Morgan Stanley raised its stake in Warner Music Group by 62.2% during the 3rd quarter. Morgan Stanley now owns 1,928,977 shares of the company’s stock valued at $82,444,000 after purchasing an additional 739,735 shares during the last quarter. Vanguard Group Inc. raised its stake in Warner Music Group by 8.9% during the 2nd quarter. Vanguard Group Inc. now owns 8,013,835 shares of the company’s stock valued at $288,818,000 after purchasing an additional 653,416 shares during the last quarter. Finally, Two Sigma Investments LP raised its stake in Warner Music Group by 5,568.1% during the 3rd quarter. Two Sigma Investments LP now owns 546,806 shares of the company’s stock valued at $23,370,000 after purchasing an additional 556,806 shares during the last quarter. Institutional investors and hedge funds own 16.91% of the company’s stock.

A number of analysts recently commented on the stock. Jefferies Financial Group upgraded shares of Warner Music Group from a “hold” rating to a “buy” rating and boosted their target price for the stock from $41.00 to $50.00 in a report on Tuesday. Citigroup boosted their target price on shares of Warner Music Group from $48.00 to $49.00 and gave the stock a “neutral” rating in a report on Friday, November 19th. Loop Capital boosted their target price on shares of Warner Music Group from $37.00 to $45.00 and gave the stock a “hold” rating in a report on Tuesday, November 16th. Bank of America downgraded shares of Warner Music Group from a “buy” rating to an “underperform” rating and dropped their target price for the stock from $53.00 to $42.00 in a report on Tuesday, November 16th. Finally, Credit Suisse Group boosted their target price on shares of Warner Music Group from $48.00 to $50.00 and gave the stock an “outperform” rating in a report on Friday, November 26th. Two research analysts have rated the stock with a sell rating, three have assigned a hold rating and eight have assigned a buy rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $49.58.

WMG stock opened at $39.92 on Friday. The company has a quick ratio of 0.57, a current ratio of 0.60 and a debt-to-equity ratio of 72.74. The company has a market capitalization of $20.54 billion, a price-to-earnings ratio of 70.04, a P/E/G ratio of 1.16 and a beta of 0.98. Warner Music Group has a 12 month low of $31.50 and a 12 month high of $50.23. The firm has a 50 day moving average of $43.65 and a two-hundred day moving average of $41.15.

Warner Music Group (NASDAQ:WMG) last posted its earnings results on Monday, November 15th. The company reported $0.05 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.15 by ($0.10). The business had revenue of $1.38 billion during the quarter, compared to the consensus estimate of $1.36 billion. Warner Music Group had a return on equity of 830.77% and a net margin of 5.73%. The business’s revenue was up 22.2% on a year-over-year basis. During the same period in the prior year, the firm earned $0.02 earnings per share. On average, research analysts expect that Warner Music Group will post 1.03 EPS for the current fiscal year.

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, December 1st. Stockholders of record on Tuesday, November 23rd were paid a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a dividend yield of 1.50%. The ex-dividend date of this dividend was Monday, November 22nd. Warner Music Group’s payout ratio is 105.27%.

About Warner Music Group

Warner Music Group Corp. operates as a music entertainment company in the United States, the United Kingdom, and internationally. The company operates through 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 artists.

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