Warner Bros. Discovery (NASDAQ:WBD) Stock Rating Lowered by Zacks Research

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

Several other equities research analysts have also commented on the company. Weiss Ratings lowered Warner Bros. Discovery from a “hold (c-)” rating to a “sell (d-)” rating in a research note on Thursday, May 7th. KeyCorp reiterated an “overweight” rating on shares of Warner Bros. Discovery in a report on Friday, April 24th. UBS Group increased 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. Guggenheim restated a “neutral” rating on shares of Warner Bros. Discovery in a report on Thursday, May 7th. Finally, Seaport Research Partners cut shares of Warner Bros. Discovery from a “buy” rating to a “neutral” rating in a research report on Monday. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, twelve have assigned a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $27.04.

Warner Bros. Discovery Stock Performance

Shares of WBD stock opened at $25.61 on Monday. 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 firm 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 has a one year low of $10.76 and a one year high of $30.00. The company has a 50 day moving average price of $26.65 and a 200 day moving average price of $27.34.

Warner Bros. Discovery (NASDAQ:WBD) last announced 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). Warner Bros. Discovery had a negative net margin of 4.67% and a negative return on equity of 4.77%. The company had revenue of $8.89 billion during the quarter, compared to analyst estimates of $8.89 billion. During the same quarter last year, the business earned ($0.18) EPS. The firm’s revenue for the quarter was down 1.0% compared to the same quarter last year. Sell-side analysts anticipate that Warner Bros. Discovery will post -1.07 EPS for the current year.

Institutional Trading of Warner Bros. Discovery

A number of hedge funds have recently made changes to their positions in WBD. Brighton Jones LLC grew its holdings in Warner Bros. Discovery by 304.9% during the 4th quarter. Brighton Jones LLC now owns 68,950 shares of the company’s stock valued at $729,000 after purchasing an additional 51,920 shares in the last quarter. NewEdge Advisors LLC increased its position in shares of Warner Bros. Discovery by 50.5% during the first quarter. NewEdge Advisors LLC now owns 63,254 shares of the company’s stock worth $679,000 after acquiring an additional 21,228 shares during the last quarter. Empowered Funds LLC lifted its stake in shares of Warner Bros. Discovery by 6.2% in the first quarter. Empowered Funds LLC now owns 65,082 shares of the company’s stock worth $698,000 after acquiring an additional 3,779 shares in the last quarter. Focus Partners Wealth lifted its stake in shares of Warner Bros. Discovery by 91.6% in the first quarter. Focus Partners Wealth now owns 116,821 shares of the company’s stock worth $1,254,000 after acquiring an additional 55,837 shares in the last quarter. Finally, Baird Financial Group Inc. boosted its holdings in Warner Bros. Discovery by 3.8% in the second quarter. Baird Financial Group Inc. now owns 111,450 shares of the company’s stock valued at $1,277,000 after purchasing an additional 4,062 shares during the last quarter. Hedge funds and other institutional investors own 59.95% of the company’s stock.

Key Headlines Impacting Warner Bros. Discovery

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.