Warner Music Group Sees Unusually Large Options Volume (NASDAQ:WMG)

Warner Music Group Corp. (NASDAQ:WMG) saw some unusual options trading on Tuesday. Stock investors purchased 2,329 call options on the company. This is an increase of 426% compared to the typical volume of 443 call options.

A number of research firms recently weighed in on WMG. Credit Suisse Group upgraded Warner Music Group from a “neutral” rating to an “outperform” rating and increased their price target for the company from $37.00 to $48.00 in a research note on Tuesday, September 21st. Barclays raised Warner Music Group from an “equal weight” rating to an “overweight” rating and raised their price objective for the company from $38.00 to $48.00 in a research note on Thursday, September 23rd. TheStreet raised Warner Music Group from a “d+” rating to a “c-” rating in a research note on Wednesday, September 8th. Zacks Investment Research downgraded Warner Music Group from a “buy” rating to a “hold” rating in a research report on Thursday, August 5th. Finally, Tigress Financial raised their price objective on Warner Music Group from $42.00 to $48.00 and gave the stock a “buy” rating in a research report on Tuesday, August 17th. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating and five have given a buy rating to the company’s stock. According to data from MarketBeat, Warner Music Group currently has a consensus rating of “Buy” and an average target price of $43.86.

In related news, major shareholder Ai Entertainment Holdings Llc sold 3,133,907 shares of Warner Music Group stock in a transaction dated Wednesday, September 8th. The stock was sold at an average price of $37.75, for a total value of $118,304,989.25. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 80.51% of the stock is currently owned by company insiders.

Several institutional investors have recently made changes to their positions in WMG. FORA Capital LLC bought a new stake in Warner Music Group in the 2nd quarter valued at $70,000. Bessemer Group Inc. acquired a new stake in Warner Music Group in the first quarter valued at approximately $86,000. Stephens Inc. AR boosted its position in shares of Warner Music Group by 48.3% during the first quarter. Stephens Inc. AR now owns 3,391 shares of the company’s stock valued at $116,000 after buying an additional 1,105 shares during the last quarter. Tradition Wealth Management LLC bought a new stake in shares of Warner Music Group in the second quarter valued at $135,000. Finally, Citigroup Inc. grew its position in Warner Music Group by 5.4% during the second quarter. Citigroup Inc. now owns 6,214 shares of the company’s stock worth $224,000 after buying an additional 316 shares in the last quarter. Institutional investors and hedge funds own 16.84% of the company’s stock.

Shares of Warner Music Group stock traded down $1.48 during mid-day trading on Tuesday, hitting $42.54. The stock had a trading volume of 12,769 shares, compared to its average volume of 808,140. The company has a quick ratio of 0.57, a current ratio of 0.60 and a debt-to-equity ratio of 35.44. The firm has a market cap of $21.88 billion, a P/E ratio of 84.66 and a beta of 1.27. The firm has a 50-day moving average of $38.18 and a two-hundred day moving average of $36.44. Warner Music Group has a 12-month low of $25.61 and a 12-month high of $45.64.

Warner Music Group (NASDAQ:WMG) last released its quarterly earnings data on Monday, August 2nd. The company reported $0.16 EPS for the quarter, topping analysts’ consensus estimates of $0.14 by $0.02. Warner Music Group had a net margin of 5.44% and a return on equity of 1,558.97%. The firm had revenue of $1.34 billion for the quarter, compared to the consensus estimate of $1.20 billion. During the same quarter in the previous year, the firm earned ($0.94) earnings per share. The firm’s revenue was up 32.7% on a year-over-year basis. Sell-side analysts expect that Warner Music Group will post 0.74 earnings per share for the current year.

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 1st. Stockholders of record on Wednesday, August 25th were given a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a dividend yield of 1.41%. This is a positive change from Warner Music Group’s previous quarterly dividend of $0.12. The ex-dividend date of this dividend was Tuesday, August 24th. Warner Music Group’s dividend payout ratio is -92.31%.

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.

Further Reading: Trade Deficit

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