WMG Institutional Activity: Mixed Investor Moves

Snack-Sized Version:

E. Ohman J or Asset Management AB reduced its stake in Warner Music Group by 3.5%. The firm sold over 36,000 shares during the third quarter. However, this move contrasts with other institutional activity. For instance, firms like Norges Bank and Darsana Capital recently increased their positions. As a result, total institutional ownership remains very high at 96.88%. The company also recently reported mixed quarterly results. Revenue grew 14.6% and beat estimates, but earnings per share missed expectations. Overall, the stock holds a ‘Moderate Buy’ rating from analysts.

Read the Full Meal:

An institutional investor recently trimmed its position in Warner Music Group. Specifically, E. Ohman J or Asset Management AB sold 3.5% of its holdings in the third quarter. The firm still holds over one million shares. However, other large investors have been buying WMG stock. For example, Norges Bank initiated a new position, and Darsana Capital Partners increased its stake. Consequently, institutional investors now own 96.88% of the company. This activity comes after the company posted strong revenue growth but missed earnings estimates. Therefore, analysts maintain a ‘Moderate Buy’ consensus on the shares.

Institutional Investors Show Mixed Activity in WMG

• Recent Earnings: The company reported a 14.6% revenue increase but missed EPS estimates in its last quarter.
• Analyst Consensus: Wall Street maintains a ‘Moderate Buy’ consensus rating with an average price target of $34.94.
• Dividend Risk: Warner Music Group’s dividend payout ratio is over 100%, which could signal a risk to its sustainability.
• Ownership Base: Despite one firm selling, institutional investors collectively own a commanding 96.88% of the company’s stock.

Why this can matter for NASDAQ:WMG holders

• Ownership Signal: High institutional ownership suggests strong conviction, but this recent selling warrants investor attention.
• Valuation View: Analysts see potential upside because the consensus price target is well above the current stock price.
• Fundamental Performance: The recent earnings miss highlights execution risks, although top-line revenue growth remains strong.

For more details, see WMG SEC filings.

What to watch next

1. Institutional Filings: Watch for the next round of quarterly 13F filings to track institutional sentiment.
2. Next Earnings Report: Monitor the company’s next quarterly earnings release for updates on profitability and guidance.

Mini FAQ

What did E. Ohman J or Asset Management AB do with its WMG stock?
The firm reduced its stake by 3.5% during the third quarter. However, it still owns over 1 million shares valued at about $34.46 million.

What is the overall institutional ownership of Warner Music Group?
Institutional investors own 96.88% of the company’s stock. In addition, several other large investors recently increased their positions or initiated new ones.

What is Wall Street’s rating on WMG stock?
Analysts have a consensus ‘Moderate Buy’ rating on the stock. Furthermore, their average price target is $34.94, which suggests potential upside.

See Also

• Warner Music Group Corporation News Hub
• Mohawk Q3 Results Miss, Stock Lags Sector
• Ameris Buyback Dividend & New Payout