WMG is extending yesterday's record lows
Warner Music Group Corp (NASDAQ:WMG) is extending last session's record lows, down 2% at $21.91 at last check, despite a brand-new bull note from Goldman Sachs after the close yesterday. The firm initiated coverage with a "buy" rating and $32 price target, noting the potential for long-term growth in the coming years. Today, however, Barclays chimed in with a price-target cut to $30 from $33.
WMG has been slipping since its early August rally was rejected by the 140-day moving average, and recently broke below previous support at the $24 level. Currently, the equity is down 48.8% year-to-date, and earlier hit a fresh record low of $21.57.
The majority of analysts are bullish on Warner Music Group stock, with 10 of the 12 in coverage now carrying a "buy" or better rating after yesterday's note. Plus, the 12-month consensus price target of $32.13 is a 46% premium to current levels.
Short interest has added 17.9% during the most recent two-week reporting period, now representing 4.4% of the stock's available float. At WMG's average pace of trading, it would take a week to buy back these bearish bets.