Warner Music (WMG)

• Market cap: $16.1B
• 1 day: 1.40%
• 5 days: -4.24%
• 1 month: -7.45%
• 3 months: 2.37%
• 6 months: 2.50%
• Year to date: -13.01%
• 1 year: -10.02%
• 5 years: 3.45%
• 10 years: 3.45%
• Sector: Consumer Discretionary
• Industry: Amusement & Recreation Services

About: Warner Music is the third-largest of the three major record companies. Recorded music accounts for most of the firm's revenue, with the segment housing notable record labels including Atlantic Records, Warner Records, Elektra Records. Some of the most successful current artists signed to record deals with Warner include Ed Sheeran, Bruno Mars, Cardi B, and Dua Lipa. Warner's remaining revenue comes from its publishing business, where Warner Chappell represents more than 180,000 songwriters and composers, some of whom are also Warner recording artists but many of whom are not recording artists or are attached to other labels. Warner Chappel controls more than 1 million musical compositions. Access Industries controls 98% of Warner's voting rights, while holding a 72% economic interest.

Employees: 5,800

Fund manager confidence

Based on 2024 Q3 regulatory filings by fund managers ($100M+ AUM)

27% more first-time investments, than exits

New positions opened: 65 | Existing positions closed: 51

8% more capital invested

Capital invested by funds: $4.31B [Q2] → $4.64B (+$329M) [Q3]

6% more funds holding

Funds holding: 248 [Q2] → 262 (+14) [Q3]

5.36% more ownership

Funds ownership: 99.23% [Q2] → 104.58% (+5.36%) [Q3]

0% more repeat investments, than reductions

Existing positions increased: 88 | Existing positions reduced: 88

1% less call options, than puts

Call options by funds: $90.7M | Put options by funds: $92M

20% less funds holding in top 10

Funds holding in top 10: 5 [Q2] → 4 (-1) [Q3]

Research analyst outlook

7 Wall Street Analysts provided 1 year price targets over the past 3 months

• Low target: $30 4% downside
• Avg. target: $35 12% upside
• High target: $44 41% upside

7 analyst ratings

• positive: 2 29%
• neutral: 4 57%
• negative: 1 14%

Guggenheim Michael Morris 71% 1-year accuracy 17 / 24 met price target	41% upside $44	Buy Reiterated	4 Dec 2024
Citigroup Jason Bazinet 68% 1-year accuracy 19 / 28 met price target	9% upside $34	Neutral Maintained	29 Nov 2024
Loop Capital Alan Gould 84% 1-year accuracy 16 / 19 met price target	12% upside $35	Hold Maintained	25 Nov 2024
Macquarie Tim Nollen 71% 1-year accuracy 29 / 41 met price target	4% downside $30	Neutral Maintained	22 Nov 2024
JP Morgan David Karnovsky 68% 1-year accuracy 17 / 25 met price target	28% upside $40	Overweight Maintained	22 Nov 2024