Wells Fargo has initiated coverage on Warner Music Group Corp (NASDAQ:WMG) with an Equal-Weight rating, indicating a neutral outlook on the company's stock, on Wednesday. The financial institution set a one-year price target for WMG at $35.48, which represents a potential increase of 7.43% from the company's recent closing price.
Warner Music Group, a titan in the music industry with over 200 years of history, operates globally in more than 70 countries and owns an extensive catalog of over 1.4 million compositions. The company boasts popular consumer brands such as Songkick, EMP, and UPROXX, as well as owning Warner Chappell Music and labels like Asylum, Atlantic, and Big Beat.
The company is showing promising financial growth with projected yearly revenues reaching $6.801 billion, marking a 14.34% year-over-year increase. Additionally, the non-GAAP EPS (earnings per share) is predicted to hit 1.34.
Investor sentiment towards WMG appears bullish with the put/call ratio standing at 0.36. Meanwhile, institutional ownership has seen a slight uptick of 0.44%, totaling 145,938K shares in the last quarter.
In terms of significant shareholders, Capital World Investors currently holds 7,668K shares, equating to 1.49% ownership of WMG, and has notably increased its portfolio allocation in WMG by 73.36%. Conversely, Caledonia (Private) Investments Pty holds 6,026K shares or 1.17% ownership but has reduced its stake by 15.49%. Darlington Partners Capital Management's ownership stands at 1.12% with 5,755K shares after a reduction of 5.31%, while Cooke & Bieler owns 4,758K shares or 0.92% ownership with a decrease of 1.28%. Citadel Advisors reports holding 3,848K shares or 0.75% ownership and has raised its WMG stake by an impressive 31.20%.
Despite these shifts in portfolio allocations among investors and institutions, the overall number of funds or institutions invested in WMG has decreased by 2.95% since the previous quarter, with the average portfolio weight also declining by 0.85%.
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