The stock of Warner Music Group Corp. (NASDAQ:WMG) is now priced at $31.43 and the shares are 0.96 points up or 3.15% higher compared to its previous closing price of $30.47. The stock had 1191111 contracts set over the past session. WMG shares’ daily volume is compared to its average trading volume at 4881768 shares. However, it has a float of 64770000 and although it’s -1.75% over the week, it’s one to watch. Analysts have given the WMG stock a yearly average price target of $23 per share. It means the stock’s downside potential is -26.82% with the WMG share price recently placing at $30.5 to $32.21. However, some brokerage firms have priced the stock below the average, including one that has called $23.
The shorts are climbing into the Warner Music Group Corp. stock, with the latest data on short interest released on June 15, 2020, showing that short interest numbers in the WMG shares have risen. Short interest in the stock represents just 2.85% of its float, but the volume has raised by 1847105. The volume of shorted shares rised to 1847105 from shares over the last two weeks. The average intraday trading volume has been 6925723 shares, which means that days to cover moved to roughly 1.
Looking at current readings, Warner Music Group Corp.’s two-week RSI is 0. This suggests that the stock is overbought at the moment and that WMG shares’ price movement remains not stable. The stochastic readings are equally revealing at 38.15% meaning the WMG share price is currently in neutral territory.
The technical chart shows that the WMG stock will likely settle at between $32.26 and $33.09 per share. However, if the stock dips below $30.55, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $29.67.
Currently, the stock is trading in the red of MACD, with a reading of -0.87. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at Maxim Group assigned WMG a rating of Hold in their intiating review released on June 30. Citigroup analysts see the stock as a Neutral with a target price of $33 in a flash note released to investors on June 30 initiating covering the stock. SunTrust analysts see the stock as Buy when the analysts initiated the share price coverage on June 29, placing it at $35.
Elsewhere, the WMG stock price is 43.05X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands at 104.8 above the group’s average of 22.7. Warner Music Group Corp. has its P/E ratio at 0, which means that the stock is currently trading at a discount relative to the 3 industry average.