Brokerages Set Warner Music Group Corp. (NASDAQ:WMG) Target Price at $38.43

Warner Music Group Corp. (NASDAQ:WMG) has received an average recommendation of “Moderate Buy” from the seventeen brokerages that are presently covering the firm, MarketBeat Ratings reports. Four analysts have rated the stock with a hold recommendation and thirteen have issued a buy recommendation on the company. The average twelve-month price objective among brokerages that have issued a report on the stock in the last year is $38.2143.

WMG has been the subject of a number of research reports. Morgan Stanley reaffirmed an “overweight” rating and set a $36.00 target price on shares of Warner Music Group in a report on Thursday. Weiss Ratings reissued a “hold (c)” rating on shares of Warner Music Group in a research note on Wednesday, June 24th. Wall Street Zen lowered shares of Warner Music Group from a “buy” rating to a “hold” rating in a research report on Saturday, July 18th. Sanford C. Bernstein reaffirmed an “outperform” rating on shares of Warner Music Group in a research note on Friday, May 8th. Finally, Evercore reiterated an “outperform” rating and issued a $43.00 price objective on shares of Warner Music Group in a report on Friday, May 8th.

Trending Headlines about Warner Music Group

Here are the key news stories impacting Warner Music Group this week:

• Positive Sentiment: Earnings and revenue exceeded expectations. Warner Music reported quarterly EPS of $0.51, well above the $0.34 consensus estimate, while revenue rose 10.4% year over year to $1.86 billion, topping forecasts of $1.81 billion. EPS also improved from a loss of $0.03 in the prior-year period. Warner Music Group quarterly earnings report
• Positive Sentiment: Warner Music raised its quarterly dividend. The company declared a $0.20-per-share dividend payable September 1 to shareholders of record August 20. The payout is 5.3% higher than the previous $0.19 dividend and represents an annualized yield of approximately 3.1%, improving the stock’s income appeal. Warner Music Group key earnings metrics
• Positive Sentiment: Management continues to target operating cash-flow conversion of 50% to 60%. This goal could reassure investors that revenue growth will translate into cash generation, supporting dividends and other capital-allocation initiatives. Warner Music cash flow conversion and Apple deal
• Neutral Sentiment: Additional earnings materials and analyst analysis are focused on operating metrics for the quarter ended June 2026. These details may help investors determine whether the beat reflects durable streaming, recorded-music and publishing trends. Warner Music Group Q3 earnings call transcript
• Negative Sentiment: The Apple-related deal includes platform-service-related cost increases extending into the fourth quarter, which could pressure margins or limit near-term cash-flow benefits despite stronger sales. WMG also carries substantial financial leverage, increasing sensitivity to execution and interest costs.

Warner Music Group Stock Up 1.7%

Shares of WMG opened at $26.44 on Friday. The company has a debt-to-equity ratio of 5.62, a quick ratio of 0.71 and a current ratio of 0.73. Warner Music Group has a one year low of $23.34 and a one year high of $35.42. The stock has a market capitalization of $13.79 billion, a price-to-earnings ratio of 20.98, a PEG ratio of 0.41 and a beta of 1.30. The stock has a 50 day moving average price of $28.13 and a 200 day moving average price of $28.72.

Warner Music Group (NASDAQ:WMG) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $0.51 earnings per share for the quarter, beating analysts’ consensus estimates of $0.34 by $0.17. Warner Music Group had a return on equity of 97.19% and a net margin of 9.20%.The company had revenue of $1.86 billion for the quarter, compared to analyst estimates of $1.81 billion. During the same quarter last year, the firm posted ($0.03) EPS. The firm’s revenue for the quarter was up 10.4% on a year-over-year basis. Equities research analysts forecast that Warner Music Group will post 1.56 earnings per share for the current fiscal year.

Warner Music Group Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Thursday, August 20th will be given a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a dividend yield of 3.0%. This is a boost from Warner Music Group’s previous quarterly dividend of $0.19. The ex-dividend date is Thursday, August 20th. Warner Music Group’s dividend payout ratio (DPR) is currently 89.41%.

Institutional Investors Weigh In On Warner Music Group

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Bank of New York Mellon Corp acquired a new position in Warner Music Group during the second quarter worth $34,111,000. Handelsbanken Fonder AB grew its holdings in Warner Music Group by 87.1% in the 2nd quarter. Handelsbanken Fonder AB now owns 42,200 shares of the company’s stock valued at $1,142,000 after buying an additional 19,642 shares in the last quarter. Chesley Taft & Associates LLC acquired a new stake in shares of Warner Music Group in the 2nd quarter worth $286,000. Assenagon Asset Management S.A. acquired a new stake in shares of Warner Music Group in the 2nd quarter worth $7,217,000. Finally, Central Pacific Bank Trust Division purchased a new position in shares of Warner Music Group during the 2nd quarter worth $107,000. Institutional investors and hedge funds own 96.88% of the company’s stock.

Warner Music Group Company Profile

Warner Music Group is a major global music company that operates across recorded music and music publishing. Its recorded-music business comprises a portfolio of well-known labels—including Atlantic, Warner Records and Parlophone—as well as distribution and artist-services operations that support both established and emerging artists. The company’s publishing arm, Warner Chappell Music, manages songwriting catalogs and administers rights for compositions across multiple media, providing licensing for film, television, advertising and other commercial uses.

WMG’s activities span the full music value chain: signing and developing artists, producing and marketing recordings, distributing music through physical channels and streaming platforms, and monetizing rights through licensing, synchronization and neighboring-rights collection.