Stock Price & Analysis

Based on the latest data and market conditions, here's a concise analysis of WMG stock:

Technical Analysis

• Current price: $36.30 (as of Feb 14, 2025 close)
• Strong upward momentum with RSI at 80.00, indicating overbought conditions
• Trading above all major moving averages (5, 10, 20, 60, and 200-day)
• Recently broke above resistance at $35.00

Recent Performance

• 1-month return: +20.04%
• 3-month return: +10.23%
• YTD return: +39.59%

Key Developments

• Recently signed a new recording and publishing agreement with Spotify, expanding services to paid subscribers
• Declared regular quarterly cash dividend payable on March 4, 2025
• Q1 2025 earnings exceeded analyst expectations

Ownership Structure

• Len Blavatnik controls 73.03% of total outstanding shares through Access Industries
• Major institutional holders include:
  • Fidelity Investments (3.33%)
  • Sands Capital (2.07%)
  • Vanguard Group (1.21%)

Recommendation SELL for the short term due to:

1. Extremely overbought conditions (RSI 80)
2. Stock has risen for 6 consecutive days, suggesting a pullback is likely
3. Trading near 52-week high of $36.64
4. Current price is 8.8% above analysts' fair value estimates

However, long-term investors may want to hold positions given:

1. Strong market position in music industry
2. Recent strategic partnerships
3. Consistent dividend payments
4. Solid institutional backing

Based on the provided data and recent developments, I'll analyze WMG's price prediction for 2025.

Technical Analysis & Price Trend

The stock is showing strong momentum with RSI at 80.00 and Stochastic RSI at 100.00, indicating overbought conditions but strong upward momentum. The MACD is positive at 1.07 with a bullish divergence, suggesting continued upward potential.

Price Target Analysis

Based on Fibonacci levels and current technical indicators:

• Support levels: $30.75 (S1), $29.16 (S2)
• Resistance levels: $35.89 (R1), $37.47 (R2)
• Pivot point: $33.32

Fundamental Catalysts

1. Strategic Growth Initiatives:

• Management targets high single-digit subscription revenue growth for fiscal 2025
• New multi-year agreement with Spotify to enhance revenue streams
• Acquisition of controlling stake in Tempo Music to strengthen catalog rights

2. Dividend Stability:

• Regular quarterly dividend of $0.18 per share maintained
• Shows financial stability and commitment to shareholder returns

2025 Price Prediction

Based on technical analysis, fundamental catalysts, and current market conditions, WMG stock is expected to reach $42 by end of 2025, representing a ~16% upside from current levels. This projection is supported by Citi's recent price target upgrade to $42 and the company's strong strategic positioning in the music streaming market.

The S1 support level for WMG Stock is $32.52 ,The R1 resistant level for WMG Stock is $36.27.

As of the end of day on 2025-02-21, the price of WMG Stock was $35.26.

The target price for WMG Stock according to analyst rating is 35.79, with the highest price target at 41.00 and the lowest at 30.00. Analysts have a Moderate Buy rating on WMG Stock overall.

The market cap of WMG is $18.3B.

Based on the provided data and recent market information, here's a comprehensive analysis of WMG's valuation:

Current Market Position WMG is currently trading at $36.30, showing a significant recovery from its recent lows. The stock has demonstrated positive momentum with a +3.39% gain in the regular market session on February 14, 2025.

Fundamental Analysis

• P/E Ratio: 21.96x
• EV/EBITDA: 14.35x
• P/S Ratio: 2.02x
• P/B Ratio: 78.62x
• Dividend Yield: 2.63%

The company recently declared a quarterly dividend of $0.18 per share, demonstrating commitment to shareholder returns despite market challenges.

Recent Performance & Strategic Moves

• Q1 2025 showed mixed results with revenue declining 5% YoY to $1.67 billion
• Digital revenue declined 2% YoY to $1.08 billion
• Adjusted OIBDA margin declined 400 basis points to 21.8%
• Strategic acquisition of controlling stake in Tempo Music Investments
• New multi-year agreement with Spotify

Valuation Assessment WMG appears to be trading at premium multiples compared to historical averages, particularly with its high P/B ratio of 78.62x. However, several factors suggest the current valuation might be justified:

1. Strong digital presence (65.35% of revenue from digital segments)
2. Strategic moves to strengthen catalog through Tempo acquisition
3. New partnership with Spotify potentially opening additional revenue streams
4. Solid cash position of $802 million as of December 31, 2024

Conclusion At current levels, WMG appears to be overvalued based on traditional metrics. The high P/B ratio and declining margins suggest limited upside potential in the near term. While the company's strategic initiatives and digital transformation are positive, these appear to be already priced into the stock.

Warner Music Group Corp. is a music entertainment company. The Company's record labels include Atlantic Records, Warner Records, Elektra Records and Parlophone Records. The Company's segments include recorded music and music publishing. The recorded music segment consists of the discovery and development of recording artists and the related marketing, promotion, distribution, sale and licensing of music created by such recording artists. In the United States, its recorded music business is conducted principally through its record labels - Atlantic Records and Warner Records. The music publishing segment is engaged in the intellectual property business, which is conducted principally through Warner Chappell Music, its global music publishing company. Warner Chappell Music also administers the music and soundtracks of several third-party television and film producers and studios. The Company has a production music catalog collectively branded as Warner Chappell Production Music.

Based on the provided data and recent market developments, here's the 2030 price prediction for Warner Music Group (WMG):

WMG stock is projected to reach $65-70 by 2030, driven by the company's strategic moves to strengthen its catalog and high single-digit subscription revenue growth targets, along with its recent multi-year deal with Spotify and majority stake acquisition in Tempo Music. The company's strong market position in the music industry oligopoly and focus on operational efficiency improvements support this long-term growth trajectory.

WMG has a total of 5900 employees.