Warner Bros. Discovery (NASDAQ:WBD) Rating Increased to Hold at Zacks Research

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

Other equities analysts have also recently issued reports about the company. Seaport Research Partners cut Warner Bros. Discovery from a “buy” rating to a “neutral” rating in a research note on Monday, July 27th. Weiss Ratings upgraded shares of Warner Bros. Discovery from a “sell (d-)” rating to a “sell (d+)” rating in a report on Tuesday, August 18th. Huber Research raised shares of Warner Bros. Discovery from an “underweight” rating to an “overweight” rating in a research report on Monday, June 1st. UBS Group upped their price objective on shares of Warner Bros. Discovery from $30.00 to $31.00 and gave the stock a “neutral” rating in a report on Thursday, May 7th. Finally, Freedom Capital raised shares of Warner Bros. Discovery from a “hold” rating to a “strong-buy” rating in a research report on Monday, August 10th. Two investment analysts have rated the stock with a Strong Buy rating, six have given a Buy rating, thirteen have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, Warner Bros. Discovery presently has an average rating of “Hold” and a consensus target price of $27.69.

Warner Bros. Discovery Stock Performance

Warner Bros. Discovery stock opened at $28.75 on Tuesday. The company has a current ratio of 0.78, a quick ratio of 0.78 and a debt-to-equity ratio of 0.90. The firm has a 50-day moving average of $26.85 and a 200-day moving average of $27.22. The firm has a market cap of $72.18 billion, a P/E ratio of -22.64 and a beta of 1.55. Warner Bros. Discovery has a 1-year low of $11.25 and a 1-year high of $30.00.

Warner Bros. Discovery (NASDAQ:WBD) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.06 EPS for the quarter, beating analysts’ consensus estimates of ($0.14) by $0.20. Warner Bros. Discovery had a negative return on equity of 8.91% and a negative net margin of 8.77%.The business had revenue of $8.72 billion during the quarter, compared to analyst estimates of $9.25 billion. During the same quarter in the prior year, the company posted $0.63 EPS. Warner Bros. Discovery’s quarterly revenue was down 11.2% compared to the same quarter last year. Sell-side analysts expect that Warner Bros. Discovery will post -1.11 EPS for the current year.

Insider Transactions at Warner Bros. Discovery

In other news, Director Kenneth W. Lowe sold 120,000 shares of the company’s stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $26.97, for a total value of $3,236,400.00. Following the sale, the director directly owned 990,108 shares of the company’s stock, valued at $26,703,212.76. This represents a 10.81% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Gerhard Zeiler sold 591,038 shares of the stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $27.05, for a total transaction of $15,987,577.90. Following the completion of the transaction, the insider owned 537,436 shares of the company’s stock, valued at approximately $14,537,643.80. The trade was a 52.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 1,750,749 shares of company stock worth $48,329,633. Corporate insiders own 0.70% of the company’s stock.

Hedge Funds Weigh In On Warner Bros. Discovery

Several large investors have recently made changes to their positions in WBD. Amundi grew its stake in shares of Warner Bros. Discovery by 11.2% in the 2nd quarter. Amundi now owns 16,324,591 shares of the company’s stock worth $435,214,000 after buying an additional 1,640,916 shares during the last quarter. HighTower Advisors LLC boosted its holdings in Warner Bros. Discovery by 1.5% in the second quarter. HighTower Advisors LLC now owns 286,042 shares of the company’s stock worth $7,626,000 after acquiring an additional 4,157 shares in the last quarter. California State Teachers Retirement System boosted its holdings in Warner Bros. Discovery by 2,593.6% in the second quarter. California State Teachers Retirement System now owns 96,581,582 shares of the company’s stock worth $2,574,865,000 after acquiring an additional 92,996,028 shares in the last quarter. Readystate Asset Management LP grew its stake in shares of Warner Bros. Discovery by 132.1% in the second quarter. Readystate Asset Management LP now owns 3,851,600 shares of the company’s stock worth $102,684,000 after acquiring an additional 2,191,929 shares during the last quarter. Finally, Ameritas Advisory Services LLC bought a new position in shares of Warner Bros. Discovery during the second quarter valued at $208,000. 59.95% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Warner Bros. Discovery

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

• Positive Sentiment: Iowa and Montana attorneys general asked the U.S. Supreme Court to block the antitrust case brought by California and 11 other states against the Paramount-WBD transaction. If the effort succeeds, it could remove a major obstacle to the acquisition and support the deal-related value embedded in WBD shares. Iowa and Montana Ask Supreme Court to Block Paramount-Warner Bros. Antitrust Suit
• Positive Sentiment: Reports that U.S. investors are examining Warner Bros. assets could highlight potential breakup or asset-sale value, including the New Line Cinema film business and WBD’s cable networks. Such interest may provide an alternative source of value if the Paramount deal fails or is restructured. U.S. Investors Eye Warner Bros. Assets
• Neutral Sentiment: Investment bankers are reportedly circling New Line Cinema and WBD’s cable networks as the legal battle continues. The activity may signal interest in valuable individual businesses, but it also underscores the possibility of a breakup and does not represent a completed transaction. Investment Bankers Circle New Line Cinema and WBD Cable Networks
• Negative Sentiment: Paramount’s acquisition remains delayed and in limbo after more than a year of strategic and legal uncertainty. The prolonged timetable makes it harder for investors to value WBD and raises the risk that expected merger benefits will be postponed or lost. Where the Paramount Merger Delay Leaves WBD
• Negative Sentiment: California Attorney General Rob Bonta said no settlement talks with Paramount and WBD are scheduled after he canceled a Monday session. The absence of near-term settlement discussions increases the likelihood of extended litigation and continued regulatory pressure. Rob Bonta Says No Paramount-WBD Settlement Talks Scheduled

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.