Sport has been almost entirely absent from our lives since the Coronavirus pandemic forced most of the planet into a state of stringently marshalled social separation. Even the most commercially powerful sports, like football and basketball, ground to a complete halt in March, costing clubs, franchises and leagues a fortune in lost revenue.
But while most sports are only just beginning to venture tentative plans for a pared-back return, WWE (World Wrestling Entertainments, inc.) insisted that the show must go on in early April. Helpfully, WWE wrestling was deemed an essential business, allowing the company to maintain a behind-closed-doors live wrestling schedule.
Thinking of investing in WWE? This guide will explain how to buy WWE stock, take a look at the best stockbrokers and consider the company’s prospects going forward.
Where to Buy WWE Stock
Should I Buy WWE stock? Points to Consider
Before you buy WWE stock, or invest in similar entertainment assets like Disney stock, it’s a good idea to do your research. We always recommend taking a closer look at the company fundamentals, historic price movements and forecasts before you invest any money.
WWE business model and share price history
WWE’s response to the Coronavirus crisis was incisive but controversial. The company moved to slash costs in anticipation of lost revenue during the inevitable economic slowdown, which entailed the immediate release of several high-profile wrestlers and the furloughing of a significant proportion of its staff.
In total, somewhere in the region of $4million in monthly expenses has been trimmed. The company also claimed to have around $500 million in cash to “to manage the challenges ahead.”
WWE has also continued to hold live wrestling events, which were obligingly classified as ‘essential business’ by Florida’s Gov. Ron DeSantis. The decision has, perhaps unsurprisingly, attracted plenty of criticism, but allows the company to fulfil exclusive TV rights contracts. On April 4-5, WWE’s flagship annual event, WrestleMania, attracted 967 million video views, a record audience for the event.
Later that month, WWE reported stronger than expected first-quarter results. Revenue hit $291 million, beating analyst predictions and up 60% year-over-year. Operating income also moved in the right direction, showing a gain of $53 million, up from a loss of $6.8 million in Q1 2019.
Investors were clearly impressed, and WWE shares promptly shot up 14.6% on April 24. Having lost 19% of its value between February 19 and March 23 (compared to a 34% decline in the S&P 500) WWE stock has rallied swiftly and could go higher if July’s Q2 results show further evidence that the entertainment company has weathered the COVID-19 crisis.
WWE stock dividend information
WWE has suspended its $500 million buyback scheme in light of the Coronavirus crisis but is proceeding with its monthly dividend payment. The annual dividend is $0.48, with a dividend yield of 1.06%.
Shareholders are due to receive the next dividend payment on Thursday, June 25.
WWE stock forecast and prediction
WWE’s median 12-month target price according to CNN – based on 15 analyst forecasts – is $50.00, with a low target of $30.00 and a high target of $66.00. The median target represents an 8.55% increase on the current price of $46.06.
MarketBeat’s analyst ratings are more optimistic, reporting a median target of $55.80 and a consensus rating of Buy.
How to Buy WWE Stock on Huobi
It’s quick and easy to buy WWE stock at our recommended broker, Huobi. Assuming you’ve signed up and funded your broker account, follow these simple steps to invest in WWE stock.
Step 1: Search for WWE (WWE) Stock
Look up WWE by typing the ticker symbol WWE into the search box.
Step 2: Click on the instrument
Select WWE from the drop-down menu to bring up the WWE trading screen.
Step 3: Choose Buy or Sell
Choose either ‘Sell’ or ‘Buy’ to open a long or short position on WWE.
Step 4: Configure your trade and hit Buy or Sell
Set your leverage amount, Stop loss and Take profit order limits, then select ‘Buy’ or ‘Sell’.
Investing in WWE stock – Final Thoughts
Under the stewardship of Vince McMahon, WWE’s response to the COVID-19 crisis has attracted criticism, but impressive Q1 results and a resurgent share price indicate that the company is doing something right. Indeed, it appears that WWE could emerge from the pandemic relatively unscathed.
While WWE is currently filming behind closed doors and therefore missing out on live audience revenue, these pared-down TV-only events are significantly cheaper to produce, so the overall impact on revenue is negligible. McMahon has said these unprecedented times “require us to be especially nimble, creative and efficient in order to ensure the long-term value of WWE.” So far, his company’s response has been controversial but effective.
If you do want to buy WWE stock today, we advise signing up to one of our recommended online stockbrokers. If you live outside the US, we suggest Huobi, while Fidelity is our top pick for US traders.
FAQs
Should I buy WWE stock or wait?
Given its strong performance during the Coronavirus crisis, WWE goes into Q2 accompanied by bullish market sentiment and upgraded price targets. We think it's currently a Buy.
What are the fees when buying WWE stock?
Zero-commission trading is available to European clients who trade on Huobi. This means that Huobi doesn't add a dealing charge or any administrative fees when you trade WWE. However, you still have to consider the spread and other charges like overnight fees.
Is there a WWE stock price prediction?
CNN’s 12-month price target, based on the predictions of 15 analysts, is $50.00, an 8.55% increase on the current price.
What does the WWE stock dividend pay?
WWE currently pays an annual dividend of $0.48 per share.
