Benet Lincoln, a director at Warner Music Group Corp. (NASDAQ:WMG), recently sold 35,000 shares of Class A Common Stock, according to a regulatory filing. The shares were sold on December 20 at a weighted average price of $30.96, generating a total of approximately $1.08 million. Following this transaction, Lincoln holds 242,360 shares directly. The shares were sold in multiple transactions at prices ranging from $30.93 to $31.04.According to InvestingPro data, Warner Music Group, with a market capitalization of $16.15 billion, has demonstrated solid performance with 6.44% revenue growth over the last twelve months and offers a 2.31% dividend yield. The company’s current trading price suggests it may be slightly undervalued based on InvestingPro’s Fair Value analysis. For deeper insights into WMG’s valuation and 8 additional key metrics, including exclusive ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Warner Music Group (WMG) reported growth in its fourth quarter and fiscal year 2024 earnings. The company’s total revenue increased by 6%, and the adjusted Operating Income Before Depreciation and Amortization (OIBDA) grew by 14% in the fourth quarter. Over the full fiscal year, WMG saw a 7% rise in revenue and an 11% increase in adjusted OIBDA.
Loop Capital recently lowered WMG’s stock target from $38.00 to $35.00, maintaining a Hold rating due to early-stage management changes aimed at reinvigorating its recorded music growth. Goldman Sachs also adjusted its financial outlook on WMG, reducing the price target from $40.00 to $37.00, but maintaining a Buy rating. Barclays (LON:BARC) revised its assessment of WMG, reducing the stock’s price target from $32.00 to $31.00 but maintaining an Equalweight rating.
These changes follow a restructuring plan by WMG expected to save $260 million in pretax expenses, a significant part of which is expected to be realized by the end of the current fiscal year. WMG is also planning to expand its target margin by an average of 100 basis points over a multi-year horizon. The company anticipates the music industry to continue growing, with subscriber penetration projected to increase from 35% to nearly 50% by 2030. A $100 million share repurchase program has been authorized, and WMG has an exciting release lineup for 2025.
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