Discovery Communications Inc. (DISCA) Lowered to “Sell” at Zacks Investment Research
According to Zacks, “Discovery Communications’ bottom-line continues to be adversely impacted by adverse foreign currency movements which also has a negative impact on its international segment revenues. Additionally, concerns related to advertising revenues remain as these largely depend on viewer ratings. In fact, advertising revenues declined in the second quarter. The company’s top line is also threatened by lack of business diversification and customer concentration in U.S. Loss of the company’s key distributors stands to have a significant negative impact on the company. Although, we are positive on Discovery's decision to renew its distribution partnership with AT&T, it remains to be seen if the company can overcome challenges and grow its top-line.”
Several other equities research analysts also recently weighed in on DISCA. JPMorgan Chase & Co. reaffirmed a hold rating on shares of Discovery Communications in a research report on Saturday, July 9th. FBR & Co reaffirmed a hold rating on shares of Discovery Communications in a research report on Thursday, August 4th. Loop Capital reaffirmed a buy rating and set a $31.00 price target on shares of Discovery Communications in a research report on Saturday, September 3rd. Jefferies Group reaffirmed a hold rating on shares of Discovery Communications in a research report on Thursday, August 11th. Finally, Barrington Research downgraded Discovery Communications from an outperform rating to a market perform rating in a research report on Thursday, September 29th. Five analysts have rated the stock with a sell rating, eleven have issued a hold rating and five have given a buy rating to the company’s stock. The company has an average rating of Hold and a consensus price target of $30.15.
Shares of Discovery Communications (NASDAQ:DISCA) opened at 27.17 on Tuesday. The company has a market capitalization of $11.36 billion, a PE ratio of 14.77 and a beta of 1.59. Discovery Communications has a one year low of $23.66 and a one year high of $31.80. The stock has a 50 day moving average price of $25.86 and a 200 day moving average price of $26.62.
Discovery Communications (NASDAQ:DISCA) last released its earnings results on Tuesday, August 2nd. The company reported $0.56 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.54 by $0.02. Discovery Communications had a return on equity of 23.45% and a net margin of 18.06%. The firm had revenue of $1.71 billion for the quarter, compared to the consensus estimate of $1.71 billion. During the same period in the prior year, the firm earned $0.49 EPS. The firm’s revenue was up 3.3% on a year-over-year basis. On average, equities research analysts predict that Discovery Communications will post $1.97 earnings per share for the current year.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Hotchkis & Wiley Capital Management LLC increased its stake in shares of Discovery Communications by 50.0% in the second quarter. Hotchkis & Wiley Capital Management LLC now owns 15,522,485 shares of the company’s stock worth $391,632,000 after buying an additional 5,175,467 shares in the last quarter. Vanguard Group Inc. increased its stake in shares of Discovery Communications by 3.6% in the second quarter. Vanguard Group Inc. now owns 14,263,250 shares of the company’s stock worth $359,862,000 after buying an additional 499,989 shares in the last quarter. Bank of New York Mellon Corp increased its stake in shares of Discovery Communications by 4.8% in the second quarter. Bank of New York Mellon Corp now owns 9,458,803 shares of the company’s stock worth $238,645,000 after buying an additional 437,438 shares in the last quarter. State Street Corp increased its stake in shares of Discovery Communications by 10.1% in the second quarter. State Street Corp now owns 6,623,850 shares of the company’s stock worth $167,122,000 after buying an additional 606,238 shares in the last quarter. Finally, BlackRock Institutional Trust Company N.A. increased its stake in shares of Discovery Communications by 0.4% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 3,878,227 shares of the company’s stock worth $97,848,000 after buying an additional 14,630 shares in the last quarter. 40.59% of the stock is currently owned by institutional investors and hedge funds.
Discovery Communications Company Profile
Discovery Communications, Inc, (Discovery) is a global media company. The Company provides content across multiple distribution platforms, including pay-television (pay-TV), free-to-air and broadcast television, Websites, digital distribution arrangements and content licensing agreements. Its segments are U.S.
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