Should I Buy WMG? WMG 2026 Analysis

Should You Buy Warner Music Group Corp (WMG) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

29.870

1 Day change

52 Week Range

36.450

Analysis Updated At

2026/01/26

Warner Music Group (WMG) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's strong financial performance, positive hedge fund activity, and favorable analyst sentiment outweigh the neutral technical indicators and lack of immediate trading signals.

Technical Analysis

The MACD histogram is negative and contracting, indicating a bearish trend, while RSI is neutral at 50.205. Moving averages are converging, suggesting indecision in the market. Key support is at 29.797, and resistance is at 31.386. The stock is currently trading pre-market at 30.32, close to the pivot level of 30.591.

Options Data

Bullish

Open Interest Put-Call Ratio

Neutral

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

Hedge funds are significantly increasing their positions in WMG, with a 127.41% increase in buying activity over the last quarter.
Strong financial performance in Q4 2025, with revenue up 14.60% YoY and net income up 162.50% YoY.
Analyst sentiment remains generally positive, with multiple Buy and Outperform ratings.
Upcoming earnings report on February 5, 2026, could act as a catalyst if results exceed expectations.

Neutral/Negative Catalysts

Neutral insider trading activity, with no significant insider buying or selling.
Gross margin dropped by 8.09% YoY in Q4 2025, which could indicate cost pressures.
Technical indicators are neutral to slightly bearish, offering no immediate bullish signals.

Financial Performance

In Q4 2025, Warner Music Group reported revenue of $1.868 billion, up 14.60% YoY. Net income surged 162.50% YoY to $105 million, with EPS also increasing by 162.50% to 0.21. However, gross margin declined to 39.08%, down 8.09% YoY.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent analyst ratings are mixed but lean positive. Citi lowered the price target to $40 from $41 but maintained a Buy rating. Morgan Stanley upgraded the stock to Overweight, citing higher payments from streamers as a growth driver. Wolfe Research and Jefferies adjusted price targets downward but kept Outperform and Buy ratings, respectively. Goldman Sachs and BofA have Neutral ratings with modestly adjusted price targets.

12 Analyst Rating

Wall Street analysts forecast WMG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WMG is 36.67 USD with a low forecast of 30 USD and a high forecast of 46 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

9 Buy

3 Hold

0 Sell

Strong Buy

Current: 29.870

Low

Averages

36.67

High

Current: 29.870

Low

Averages

36.67

High

MoffettNathanson

Clay Griffin

initiated

$38

AI Analysis

2026-01-27

New

Reason

MoffettNathanson

Clay Griffin

Price Target

$38

AI Analysis

2026-01-27

New

initiated

Reason

MoffettNathanson analyst Clay Griffin initiated coverage of Warner Music with a Buy rating and $38 price target. Fifteen years into the penetration of music streaming, the market, at least in developed markets, is largely saturated and the subscriber growth chapter of the story is "drawing to a close," says the analyst, who sees the next chapter being "all about pricing." The firm thinks "there's plenty of room for pricing growth," the analyst added.

Citi

Buy

downgrade

$41 -> $40

2026-01-21

Reason

Citi

Price Target

$41 -> $40

2026-01-21

downgrade

Buy

Reason

Citi lowered the firm's price target on Warner Music to $40 from $41 and keeps a Buy rating on the shares.

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WMG Should I Buy

WMG Should I Buy

Should You Buy Warner Music Group Corp (WMG) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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