Warner Music (WMG)

• Market cap: $15.7B
• 1 day: 0.70%
• 5 days: 3.53%
• 1 month: -5.32%
• 3 months: -6.32%
• 6 months: -4.61%
• Year to date: -3.39%
• 1 year: -15.53%
• 5 years: 0.40%
• 10 years: 0.40%
• 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)

38% more first-time investments, than exits

New positions opened: 65 | Existing positions closed: 47

9% more capital invested

Capital invested by funds: $4.5B [Q2] → $4.91B (+$407M) [Q3]

7.03% more ownership

Funds ownership: 103.73% [Q2] → 110.77% (+7.03%) [Q3]

6% more funds holding

Funds holding: 248 [Q2] → 262 (+14) [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

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

• Low target: $30 1% downside
• Avg. target: $36 19% upside
• High target: $41 36% upside

9 analyst ratings

• positive: 5 56%
• neutral: 4 44%
• negative: 0 0%

Morgan Stanley Benjamin Swinburne 68% 1-year accuracy 13 / 19 met price target	22% upside $37	Overweight Maintained	13 Jan 2025
UBS Batya Levi 100% 1-year accuracy 6 / 6 met price target	36% upside $41	Buy Maintained	10 Jan 2025
Evercore ISI Group Vijay Jayant 71% 1-year accuracy 12 / 17 met price target	16% upside $35	Outperform Maintained	9 Jan 2025
Guggenheim Michael Morris 68% 1-year accuracy 19 / 28 met price target	32% upside $40	Buy Maintained	8 Jan 2025
Citigroup Jason Bazinet 74% 1-year accuracy 23 / 31 met price target	12% upside $34	Neutral Maintained	29 Nov 2024