Warner Bros. Discovery (NASDAQ:WBD) Downgraded by Zacks Research to “Strong Sell”

Warner Bros. Discovery (NASDAQ:WBD) was downgraded by analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Monday,Zacks.com reports.

WBD has been the subject of a number of other reports. UBS Group lifted their price target on shares of Warner Bros. Discovery from $30.00 to $31.00 and gave the company a “neutral” rating in a research report on Thursday, May 7th. Guggenheim reaffirmed a “neutral” rating on shares of Warner Bros. Discovery in a report on Thursday, May 7th. KeyCorp reiterated an “overweight” rating on shares of Warner Bros. Discovery in a research report on Friday, April 24th. Weiss Ratings lowered Warner Bros. Discovery from a “hold (c-)” rating to a “sell (d-)” rating in a report on Thursday, May 7th. Finally, Seaport Research Partners cut Warner Bros. Discovery from a “buy” rating to a “neutral” rating in a research report on Monday. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, twelve have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, Warner Bros. Discovery presently has an average rating of “Hold” and a consensus price target of $27.04.

Warner Bros. Discovery Trading Up 1.3%

NASDAQ:WBD opened at $25.61 on Monday. Warner Bros. Discovery has a 1 year low of $10.76 and a 1 year high of $30.00. The company has a debt-to-equity ratio of 0.92, a quick ratio of 0.73 and a current ratio of 0.73. The stock has a fifty day moving average price of $26.65 and a two-hundred day moving average price of $27.34. The stock has a market capitalization of $64.21 billion, a price-to-earnings ratio of -36.59 and a beta of 1.54.

Warner Bros. Discovery (NASDAQ:WBD) last posted its quarterly earnings results on Wednesday, May 6th. The company reported ($1.17) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.10) by ($1.07). The company had revenue of $8.89 billion for the quarter, compared to analyst estimates of $8.89 billion. Warner Bros. Discovery had a negative return on equity of 4.77% and a negative net margin of 4.67%.The business’s revenue for the quarter was down 1.0% compared to the same quarter last year. During the same period last year, the company earned ($0.18) earnings per share. As a group, sell-side analysts anticipate that Warner Bros. Discovery will post -1.07 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Warner Bros. Discovery

Several hedge funds have recently modified their holdings of the company. Norges Bank purchased a new position in shares of Warner Bros. Discovery during the fourth quarter valued at approximately $1,123,807,000. Duquesne Family Office LLC acquired a new position in Warner Bros. Discovery in the 2nd quarter valued at $74,916,000. Amundi raised its holdings in Warner Bros. Discovery by 59.6% in the 3rd quarter. Amundi now owns 15,523,538 shares of the company’s stock valued at $296,189,000 after acquiring an additional 5,798,592 shares during the last quarter. Marshall Wace LLP purchased a new position in shares of Warner Bros. Discovery during the 3rd quarter worth $100,135,000. Finally, Healthcare of Ontario Pension Plan Trust Fund boosted its holdings in shares of Warner Bros. Discovery by 509.5% during the fourth quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 5,981,814 shares of the company’s stock worth $172,396,000 after purchasing an additional 5,000,437 shares during the last quarter. 59.95% of the stock is owned by institutional investors and hedge funds.

Warner Bros. Discovery News Roundup

Here are the key news stories impacting Warner Bros. Discovery this week:

• Positive Sentiment: TKO CEO Ari Emanuel defended the Paramount-WBD merger, arguing that blocking the deal could damage Hollywood and that the combined company would be better positioned to compete in a rapidly changing entertainment market. TKO CEO Ari Emanuel Warns Blocking Paramount-WBD Merger Could Hurt Hollywood
• Positive Sentiment: Paramount chief executive David Ellison reiterated confidence that the WBD transaction will close, which may reassure investors that the deal remains active despite the delay and litigation. David Ellison Confident WBD Deal Will Close
• Neutral Sentiment: Coverage of Wall Street price targets provides context for valuation, but the range of expectations remains highly dependent on whether the Paramount transaction receives regulatory approval. Wall Street Analysts’ Target Price for Warner Bros. Discovery Stock
• Negative Sentiment: California and other states are pursuing an antitrust lawsuit to challenge the Paramount-WBD combination. SAG-AFTRA also opposes the deal, while some WBD executives reportedly hope the litigation stops it, increasing the risk of further delays or a failed transaction. SAG-AFTRA Opposes Paramount-WBD Deal
• Negative Sentiment: Seaport Research downgraded WBD to “neutral” from “buy” after the merger delay, citing insufficient regulatory clarity. The downgrade followed a broader pullback in the stock and highlights the near-term overhang on shares. Warner Bros Stock Downgraded After Paramount Merger Delay
• Negative Sentiment: WBD sued Amazon, alleging that Amazon improperly recruited HBO Max executives and seeking restrictions on future employee hiring. The litigation could create additional legal costs and operational disruption, although it may help WBD retain key talent. Warner Bros. Discovery Sues Amazon Over HBO Max Executive Hire

About Warner Bros. Discovery

Warner Bros. Discovery (NASDAQ: WBD) is a global media and entertainment company formed when WarnerMedia and Discovery, Inc combined their businesses in 2022. Headquartered in New York City, the company assembles a broad portfolio of film and television production, linear and cable networks, streaming services and consumer distribution operations. Its assets span well-known studio brands, premium scripted and unscripted programming, news and factual entertainment, and licensed franchise properties.

The company’s core activities include film and television production and distribution through units such as Warner Bros.