Warner Bros. Discovery (NASDAQ:WBD) Upgraded to Strong-Buy at Freedom Capital

Warner Bros. Discovery (NASDAQ:WBD) was upgraded by equities research analysts at Freedom Capital from a “hold” rating to a “strong-buy” rating in a research report issued to clients and investors on Monday,Zacks.com reports.

Other research analysts have also issued research reports about the company. Guggenheim reiterated a “neutral” rating on shares of Warner Bros. Discovery in a research report on Thursday, May 7th. Weiss Ratings reissued a “sell (d-)” rating on shares of Warner Bros. Discovery in a report on Tuesday, August 4th. Zacks Research cut shares of Warner Bros. Discovery from a “hold” rating to a “strong sell” rating in a research note on Monday, July 27th. Huber Research raised shares of Warner Bros. Discovery from an “underweight” rating to an “overweight” rating in a report on Monday, June 1st. Finally, Seaport Research Partners lowered shares of Warner Bros. Discovery from a “buy” rating to a “neutral” rating in a research report on Monday, July 27th. Two research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, twelve have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat, Warner Bros. Discovery currently has a consensus rating of “Hold” and a consensus price target of $27.69.

Warner Bros. Discovery Price Performance

Shares of NASDAQ:WBD opened at $27.07 on Monday. The firm’s 50 day moving average is $26.48 and its two-hundred day moving average is $27.17. The firm has a market capitalization of $67.87 billion, a P/E ratio of -21.31 and a beta of 1.55. The company has a current ratio of 0.78, a quick ratio of 0.78 and a debt-to-equity ratio of 0.90. Warner Bros. Discovery has a 52 week low of $10.79 and a 52 week high of $30.00.

Warner Bros. Discovery (NASDAQ:WBD) last issued its quarterly earnings data on Thursday, August 6th. The company reported $0.06 earnings per share (EPS) for the quarter, topping 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 period in the prior year, the company posted $0.63 EPS. The business’s revenue for the quarter was down 11.2% compared to the same quarter last year. Analysts anticipate that Warner Bros. Discovery will post -1.15 earnings per share for the current year.

Hedge Funds Weigh In On Warner Bros. Discovery

Several hedge funds have recently modified their holdings of the company. Harbor Investment Advisory LLC raised its stake in shares of Warner Bros. Discovery by 111.2% in the 2nd quarter. Harbor Investment Advisory LLC now owns 942 shares of the company’s stock worth $25,000 after buying an additional 496 shares in the last quarter. Swiss RE Ltd. bought a new position in Warner Bros. Discovery during the fourth quarter valued at about $26,000. Elevation Wealth Partners LLC raised its position in Warner Bros. Discovery by 64.3% in the second quarter. Elevation Wealth Partners LLC now owns 1,009 shares of the company’s stock worth $27,000 after acquiring an additional 395 shares in the last quarter. Fideuram Asset Management Ireland dac acquired a new stake in Warner Bros. Discovery in the 4th quarter valued at about $29,000. Finally, MV Capital Management Inc. acquired a new stake in Warner Bros. Discovery in the 4th quarter valued at about $30,000. 59.95% of the stock is currently owned by institutional investors and hedge funds.

More Warner Bros. Discovery News

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

• Positive Sentiment: Merger progress and potential shareholder payments: Warner Bros. Discovery reportedly received UK clearance for its proposed approximately $110 billion takeover by Paramount Skydance. If the transaction closes, Paramount Skydance is expected to pay WBD shareholders a quarterly “ticking fee” beginning September 30 until completion, potentially supporting WBD’s value while investors await regulatory resolution. Warner Bros. Discovery Wins UK Clearance For $110 Billion Takeover
• Positive Sentiment: Quarterly earnings beat: WBD reported second-quarter adjusted earnings of $0.06 per share, surpassing the consensus estimate for a $0.14 loss. Streaming subscriber and margin gains helped offset weaker Studios and Global Linear Networks results. WBD Q2 Earnings Beat Estimates, Revenues Miss on Studios Weakness
• Positive Sentiment: Potential theatrical support: A proposed Paramount-WBD arrangement would guarantee exhibitors 30 exclusive theatrical releases annually, including 15 from WBD, with defined theatrical and streaming windows. If approved, the deal could provide more predictable studio distribution and strengthen the strategic rationale for the merger.
• Neutral Sentiment: Short-interest data is inconclusive: The reported August short-interest figure is zero shares, unchanged from a prior zero-share reading, with a zero-day short-interest ratio. The apparent “large increase” is mathematically inconsistent and likely reflects a data-reporting issue rather than a meaningful shift in investor positioning.
• Negative Sentiment: Antitrust uncertainty remains the principal risk: California Attorney General Rob Bonta is pursuing litigation to challenge the merger. Paramount CEO David Ellison reportedly threatened to begin moving Paramount out of California if negotiations do not produce a settlement, highlighting the escalating political and legal conflict. David Ellison Told Top Execs Paramount Will Exit California If AG Refuses To Negotiate Settlement In WBD Merger Suit
• Negative Sentiment: Underlying operating weakness persists: WBD’s quarterly revenue missed estimates, while Studios and Global Linear Networks remained weak. Reports also characterized recent film releases, including Supergirl and The Bride, as major box-office disappointments, reinforcing concerns about content performance and profitability.

Warner Bros. Discovery Company Profile

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.