Investors Purchase High Volume of Put Options on Warner Music Group (NASDAQ:WMG)

Warner Music Group Corp. (NASDAQ:WMG) was the recipient of unusually large options trading activity on Tuesday. Investors purchased 32,022 put options on the company. This represents an increase of approximately 10,263% compared to the average volume of 309 put options.

Warner Music Group Price Performance

Shares of NASDAQ WMG traded down $0.32 during midday trading on Tuesday, reaching $30.13. 416,424 shares of the company were exchanged, compared to its average volume of 1,864,751. The stock’s 50-day moving average price is $32.47 and its 200-day moving average price is $30.46. The stock has a market cap of $15.70 billion, a P/E ratio of 52.81, a PEG ratio of 0.95 and a beta of 1.30. The company has a quick ratio of 0.64, a current ratio of 0.66 and a debt-to-equity ratio of 5.37. Warner Music Group has a one year low of $25.56 and a one year high of $36.64.

Warner Music Group Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 2nd. Shareholders of record on Wednesday, November 19th will be given a $0.19 dividend. The ex-dividend date is Wednesday, November 19th. This represents a $0.76 annualized dividend and a yield of 2.5%. Warner Music Group’s dividend payout ratio (DPR) is currently 133.33%.

Analyst Upgrades and Downgrades

WMG has been the subject of a number of analyst reports. Citigroup lifted their price target on shares of Warner Music Group from $33.00 to $41.00 and gave the company a “buy” rating in a research report on Tuesday, September 9th. Bank of America upped their target price on Warner Music Group from $33.00 to $36.00 and gave the company a “neutral” rating in a research report on Wednesday, October 1st. Tigress Financial raised their price target on Warner Music Group from $44.00 to $45.00 and gave the stock a “buy” rating in a research report on Wednesday, September 10th. JPMorgan Chase & Co. upped their price objective on shares of Warner Music Group from $36.00 to $40.00 and gave the stock an “overweight” rating in a research report on Wednesday, October 8th. Finally, Cowen reaffirmed a “buy” rating on shares of Warner Music Group in a report on Thursday, August 7th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $35.76.

Institutional Trading of Warner Music Group

A number of hedge funds have recently made changes to their positions in WMG. Nisa Investment Advisors LLC raised its holdings in Warner Music Group by 120.1% in the 3rd quarter. Nisa Investment Advisors LLC now owns 865 shares of the company’s stock valued at $29,000 after buying an additional 472 shares during the last quarter. Farther Finance Advisors LLC increased its position in Warner Music Group by 57.5% in the 3rd quarter. Farther Finance Advisors LLC now owns 879 shares of the company’s stock valued at $30,000 after acquiring an additional 321 shares during the period. GAMMA Investing LLC raised its stake in shares of Warner Music Group by 85.7% during the third quarter. GAMMA Investing LLC now owns 1,107 shares of the company’s stock valued at $38,000 after acquiring an additional 511 shares during the last quarter. Mather Group LLC. acquired a new position in shares of Warner Music Group during the third quarter worth $42,000. Finally, Banque Cantonale Vaudoise acquired a new position in shares of Warner Music Group during the first quarter worth $40,000. 96.88% of the stock is owned by institutional investors and hedge funds.

About Warner Music Group

Warner Music Group Corp. operates as a music entertainment company in the United States, the United Kingdom, Germany, and internationally. It operates through Recorded Music and Music Publishing segments. The Recorded Music segment is involved in the discovery and development of recording artists, as well as related marketing, promotion, distribution, sale, and licensing of music created by such recording artists; markets its music catalog through compilations and reissuances of previously released music and video titles, as well as previously unreleased materials; and conducts its operation primarily through a collection of record labels, such as Warner Records and Atlantic Records, as well as Asylum, Big Beat, Canvasback, East West, Erato, FFRR, Fueled by Ramen, Nonesuch, Parlophone, Reprise, Roadrunner, Sire, Spinnin’ Records, Warner Classics, and Warner Music Nashville.