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

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

WBD has been the topic of a number of other research reports. Huber Research raised shares of Warner Bros. Discovery from an “underweight” rating to an “overweight” rating in a report on Monday, June 1st. Seaport Research Partners lowered shares of Warner Bros. Discovery from a “buy” rating to a “neutral” rating in a report on Monday, July 27th. UBS Group lifted their target price on shares of Warner Bros. Discovery from $30.00 to $31.00 and gave the stock a “neutral” rating in a research report on Thursday, May 7th. Weiss Ratings upgraded Warner Bros. Discovery from a “sell (d-)” rating to a “sell (d+)” rating in a research report on Tuesday, August 18th. Finally, Freedom Capital raised Warner Bros. Discovery from a “hold” rating to a “strong-buy” rating in a research note on Monday, August 10th. Two investment analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, thirteen have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $27.69.

Warner Bros. Discovery Trading Down 0.5%

Shares of WBD opened at $28.75 on Tuesday. The business’s 50-day moving average price is $26.85 and its 200-day moving average price is $27.22. The company has a quick ratio of 0.78, a current ratio of 0.78 and a debt-to-equity ratio of 0.90. The stock has a market cap of $72.18 billion, a PE ratio of -22.64 and a beta of 1.55. Warner Bros. Discovery has a twelve month low of $11.25 and a twelve month high of $30.00.

Warner Bros. Discovery (NASDAQ:WBD) last posted its earnings results on Thursday, August 6th. The company reported $0.06 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.14) by $0.20. Warner Bros. Discovery had a negative net margin of 8.77% and a negative return on equity of 8.91%. The business had revenue of $8.72 billion for the quarter, compared to analysts’ expectations 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. On average, equities analysts forecast that Warner Bros. Discovery will post -1.11 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Fazal F. Merchant sold 71,539 shares of the firm’s stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $27.75, for a total value of $1,985,207.25. Following the completion of the sale, the director owned 33,067 shares of the company’s stock, valued at $917,609.25. This trade represents a 68.39% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Gerhard Zeiler sold 591,038 shares of Warner Bros. Discovery stock in a transaction on Monday, August 10th. The shares were sold at an average price of $27.05, for a total transaction of $15,987,577.90. Following the completion of the sale, the insider owned 537,436 shares in the company, valued at approximately $14,537,643.80. This trade represents a 52.37% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,750,749 shares of company stock valued at $48,329,633 over the last three months. 0.70% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Warner Bros. Discovery

Several institutional investors and hedge funds have recently modified their holdings of WBD. Harbor Investment Advisory LLC boosted its stake in shares of Warner Bros. Discovery by 111.2% during the 2nd quarter. Harbor Investment Advisory LLC now owns 942 shares of the company’s stock valued at $25,000 after purchasing an additional 496 shares in the last quarter. Field & Main Bank bought a new position in Warner Bros. Discovery in the second quarter worth about $26,000. Swiss RE Ltd. bought a new position in Warner Bros. Discovery in the fourth quarter worth about $26,000. Elevation Wealth Partners LLC lifted its holdings 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 buying an additional 395 shares during the period. Finally, Archer Investment Corp purchased a new stake in Warner Bros. Discovery in the second quarter worth about $27,000. 59.95% of the stock is owned by hedge funds and other institutional investors.

More Warner Bros. Discovery News

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.