Warner Bros. Discovery (NASDAQ:WBD) Upgraded at Zacks Research

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

Other equities research analysts have also issued research reports about the stock. 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. Huber Research upgraded shares of Warner Bros. Discovery from an “underweight” rating to an “overweight” rating in a research report on Monday, June 1st. Weiss Ratings raised shares of Warner Bros. Discovery from a “sell (d-)” rating to a “sell (d+)” rating in a report on Tuesday, August 18th. Seaport Research Partners downgraded shares of Warner Bros. Discovery from a “buy” rating to a “neutral” rating in a research report on Monday, July 27th. Finally, Guggenheim reissued a “neutral” rating on shares of Warner Bros. Discovery in a research report on Thursday, May 7th. Two equities research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating, thirteen have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $27.69.

Warner Bros. Discovery Stock Down 0.5%

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

Warner Bros. Discovery (NASDAQ:WBD) last issued 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. The company had revenue of $8.72 billion for the quarter, compared to analysts’ expectations of $9.25 billion. Warner Bros. Discovery had a negative net margin of 8.77% and a negative return on equity of 8.91%. The firm’s quarterly revenue was down 11.2% on a year-over-year basis. During the same quarter last year, the company posted $0.63 earnings per share. Equities analysts forecast that Warner Bros. Discovery will post -1.11 earnings per share for the current fiscal year.

Insider Activity

In other Warner Bros. Discovery news, CEO David Zaslav sold 773,173 shares of the company’s stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $28.01, for a total value of $21,656,575.73. Following the completion of the transaction, the chief executive officer directly owned 6,807,934 shares in the company, valued at $190,690,231.34. This represents a 10.20% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Kenneth W. Lowe sold 120,000 shares of the firm’s stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $26.97, for a total transaction of $3,236,400.00. Following the sale, the director owned 990,108 shares in the company, valued at $26,703,212.76. The trade was a 10.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 1,750,749 shares of company stock valued at $48,329,633. Company insiders own 0.70% of the company’s stock.

Institutional Trading of Warner Bros. Discovery

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Swiss RE Ltd. purchased a new position in shares of Warner Bros. Discovery in the fourth quarter worth $26,000. Harbor Investment Advisory LLC boosted its holdings 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 purchasing an additional 496 shares during the period. Field & Main Bank bought a new position in Warner Bros. Discovery during the second quarter valued at $26,000. Fideuram Asset Management Ireland dac bought a new position in shares of Warner Bros. Discovery during the fourth quarter valued at approximately $29,000. Finally, Elevation Wealth Partners LLC increased its stake 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 purchasing an additional 395 shares during the period. 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: 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

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.