Warner Music Group Corp. (NASDAQ:WMG) stock’s Relative Strength Index (RSI) is 44.66, with weekly volatility at 2.57% and ATR at 1.27. The WMG stock’s 52-week price range has touched low of $25.61 and a $39.61 high. Its shares traded higher over the last trading session, gaining 0.79% on 06/10/21. The shares fell to a low of $33.98 before closing at $34.40. Intraday shares traded counted 0.49 million, which was 46.25% higher than its 30-day average trading volume of 908.69K. WMG’s previous close was $34.13 while the outstanding shares total 514.33M.
Investors have identified the Entertainment company Warner Music Group Corp. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $17.39 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Warner Music Group Corp. (WMG) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 1.76 billion total, with 2.78 billion as their total liabilities.
WMG were able to record 281.0 million as free cash flow during the 08/10/2021 quarter of the year, this saw their quarterly net cash flow reduce by 35.0 million. In cash movements, the company had a total of 319.0 million as operating cash flow.
Potential earnings growth for Warner Music Group Corp. (WMG)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/10/2021 quarter of the year, Warner Music Group Corp. recorded a total of 1.25 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 14.32% coming in sequential stages and their sales for the 08/10/2021 quarter reducing by -6.8%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 623.0 million trying to sell their products during the last quarter, with the result yielding a gross income of 627.0 million. This allows shareholders to hold on to 514.33M with the recently reported earning now reading 0.23 cents per share. This is a figure that compared to analyst’s prediction for their 08/10/2021 (0.22 cents a share).
Having a look at the company’s valuation, the company is expected to record 1.02 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on WMG sounds very interesting.
Is the stock of WMG attractive?
In related news, CEO, Recorded Music, Lousada Max sold 484,460 shares of the company’s stock in a transaction that recorded on Mar 16. The sale was performed at an average price of 33.25, for a total value of 16,108,295. As the sale deal closes, the 10% Owner, AI Entertainment Holdings LLC now sold 19,550 shares of the company’s stock, valued at 747,788. Also, 10% Owner, AI Entertainment Holdings LLC sold 4,735,076 shares of the company’s stock in a deal that was recorded on Feb 10. The shares were price at an average price of 38.25 per share, with a total market value of 181,116,657. Following this completion of acquisition, the CEO, Cooper Stephen Forbes now holds 557,000 shares of the company’s stock, valued at 17,289,280. In the last 6 months, insiders have changed their ownership in shares of company stock by 6.60%.
7 out of 16 analysts covering the stock have rated it a Buy, while 8 have maintained a Hold recommendation on Warner Music Group Corp.. 1 analysts has assigned a Sell rating on the WMG stock. The 12-month mean consensus price target for the company’s shares has been set at $40.73.