Universal Music Group ($UMGNF) will move its primary stock exchange listing to the U.S. from the Netherlands in 2025.
Universal Music, which publishes music by artists such as Taylor Swift and Drake, will shift its primary listing to either the Nasdaq or New York Stock Exchange in the new year. The move was announced by hedge fund manager Bill Ackman who holds a 10% stake in Universal Music, and, as the largest shareholder, has the ability through a contract provision to move the stock’s primary listing.
Ackman said he is listing the stock in the U.S. following anti-Semitic attacks in Amsterdam. Ackman further said on social media that he plans to delist his publicly traded Pershing Square Holdings (AMS:PSH) from the Euronext exchange in the Netherlands.
Giving Universal Music Stock a Lift?
Pershing Square has 120 days to file a formal registration with the U.S. Securities and Exchange Commission (SEC) to relist the stock in New York, according to media reports. It is not clear whether Universal Music will maintain a secondary listing in the Netherlands or leave Europe altogether.
The stock of Universal Music has declined 20% since it was spun-off from Vivendi ($VIVHY) in 2021. Ackman has blamed the poor performance of Universal Music’s stock on the company’s lack of exposure to U.S. markets, something he now plans to rectify.
Is UMGNF Stock a Buy?
The stock of Universal Music Group has a consensus Moderate Buy rating among 16 Wall Street analysts. That rating is based on nine Buy, six Hold, and one Sell recommendations issued in the last three months. The average UMGNF price target of $31.61 implies 26.60% upside from current levels.
