Analysts Set Warner Music Group Corp. (NASDAQ:WMG) Target Price at $38.43

Shares of Warner Music Group Corp. (NASDAQ:WMG) have been given a consensus rating of “Moderate Buy” by the seventeen ratings firms that are presently covering the stock, Marketbeat reports. Four analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the company. The average 12-month price objective among brokers that have issued a report on the stock in the last year is $38.2143.

A number of brokerages have commented on WMG. Morgan Stanley reaffirmed an “overweight” rating and set a $36.00 target price on shares of Warner Music Group in a report on Thursday. Wall Street Zen cut shares of Warner Music Group from a “buy” rating to a “hold” rating in a research note on Saturday, July 18th. Zacks Research downgraded shares of Warner Music Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, June 22nd. UBS Group upped their price objective on Warner Music Group from $40.00 to $42.00 and gave the stock a “buy” rating in a research note on Friday, May 8th. Finally, JPMorgan Chase & Co. raised their target price on Warner Music Group from $40.00 to $43.00 and gave the stock an “overweight” rating in a report on Friday, May 8th.

Key Warner Music Group News

Here are the key news stories impacting Warner Music Group this week:

• Positive Sentiment: Warner Music reported fiscal Q3 revenue of approximately $1.86 billion, ahead of consensus expectations and up roughly 9%–10% year over year. Subscription streaming revenue increased 11%, supporting the company’s core recurring-revenue model. WMG calendar Q2: Total revenue up 9.3% YoY to $1.86B; subscription streaming revenues rose 11% YoY
• Positive Sentiment: Adjusted earnings were $0.51 per share, well above the $0.34 analyst consensus and sharply better than the year-earlier loss of $0.03 per share. The earnings beat and double-digit revenue growth reinforce the investment case for Warner Music as a long-term music-streaming compounder. Warner Music Group Corp. Reports Results for Fiscal Third Quarter Ended June 30, 2026
• Positive Sentiment: Guggenheim maintained its Buy rating, while bullish commentary highlighted WMG’s improved valuation following the recent share-price weakness. The company also raised its quarterly dividend 5.3% to $0.20 per share, signaling confidence in cash generation and shareholder returns. Guggenheim Keeps Their Buy Rating on Warner Music Group
• Neutral Sentiment: Management is targeting operating cash-flow conversion of 50%–60%. That goal provides a framework for evaluating future results, but suggests investors will closely monitor the timing of cash generation and profitability improvements. Warner Music targets 50% to 60% operating cash flow conversion as Apple deal extends PSM increases into Q4
• Negative Sentiment: The market’s caution reflects a key streaming test ahead, including whether subscription growth can remain strong and offset pressure from licensing economics. An Apple agreement extends price-supporting measures into the fourth quarter, potentially delaying clearer evidence of organic pricing power. Warner Music Group Faces a Key Streaming Test

Warner Music Group Trading Down 0.2%

Warner Music Group stock opened at $26.39 on Friday. Warner Music Group has a 52-week low of $23.34 and a 52-week high of $35.42. The company has a market cap of $13.77 billion, a P/E ratio of 20.94, a P/E/G ratio of 0.41 and a beta of 1.30. The company has a quick ratio of 0.71, a current ratio of 0.73 and a debt-to-equity ratio of 4.94. The business has a 50-day simple moving average of $28.03 and a two-hundred day simple moving average of $28.70.

Warner Music Group (NASDAQ:WMG) last issued its quarterly earnings data on Wednesday, August 5th. The company reported $0.51 earnings per share for the quarter, topping the consensus estimate of $0.34 by $0.17. The firm had revenue of $1.86 billion for the quarter, compared to analysts’ expectations of $1.81 billion. Warner Music Group had a net margin of 9.20% and a return on equity of 92.97%. The business’s quarterly revenue was up 10.4% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.03) EPS. Analysts predict that Warner Music Group will post 1.56 EPS for the current year.

Warner Music Group Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Thursday, August 20th will be issued a dividend of $0.20 per share. This is a boost from Warner Music Group’s previous quarterly dividend of $0.19. This represents a $0.80 annualized dividend and a yield of 3.0%. The ex-dividend date of this dividend is Thursday, August 20th. Warner Music Group’s dividend payout ratio is presently 63.49%.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. US Bancorp DE grew its stake in shares of Warner Music Group by 23.5% during the 3rd quarter. US Bancorp DE now owns 1,729 shares of the company’s stock valued at $59,000 after acquiring an additional 329 shares during the period. Thrivent Financial for Lutherans raised its stake in Warner Music Group by 1.1% during the 2nd quarter. Thrivent Financial for Lutherans now owns 34,350 shares of the company’s stock worth $936,000 after acquiring an additional 358 shares during the period. Federation des caisses Desjardins du Quebec raised its stake in Warner Music Group by 12.0% during the 4th quarter. Federation des caisses Desjardins du Quebec now owns 3,783 shares of the company’s stock worth $116,000 after acquiring an additional 405 shares during the period. Natixis Advisors LLC lifted its holdings in Warner Music Group by 3.6% during the fourth quarter. Natixis Advisors LLC now owns 12,718 shares of the company’s stock valued at $390,000 after purchasing an additional 446 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in Warner Music Group by 4.3% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 11,062 shares of the company’s stock valued at $339,000 after purchasing an additional 460 shares in the last quarter. Institutional investors own 96.88% of the company’s stock.

Warner Music Group Company Profile

Warner Music Group is a major global music company that operates across recorded music and music publishing. Its recorded-music business comprises a portfolio of well-known labels—including Atlantic, Warner Records and Parlophone—as well as distribution and artist-services operations that support both established and emerging artists. The company’s publishing arm, Warner Chappell Music, manages songwriting catalogs and administers rights for compositions across multiple media, providing licensing for film, television, advertising and other commercial uses.

WMG’s activities span the full music value chain: signing and developing artists, producing and marketing recordings, distributing music through physical channels and streaming platforms, and monetizing rights through licensing, synchronization and neighboring-rights collection.