Key Points
- Director Fazal Merchant sold 71,539 WBD shares at an average price of $27.75, generating approximately $1.99 million and reducing his holdings by 68.39% to 33,067 shares.
- Warner Bros. Discovery’s latest quarter beat earnings expectations with $0.06 in EPS versus a projected loss of $0.14, but revenue fell 11.2% year over year to $8.72 billion and the company remained unprofitable.
- Analyst sentiment remains mixed, with a consensus “Hold” rating and a $27.69 price target; merger expectations provide support, while antitrust litigation and additional large insider sales remain risks.
Warner Bros. Discovery, Inc. (NASDAQ:WBD - Get Free Report) Director Fazal Merchant sold 71,539 shares of the company's stock in a transaction that occurred 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 directly owned 33,067 shares of the company's stock, valued at approximately $917,609.25. This represents a 68.39% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website.
Warner Bros. Discovery Stock Up 0.9%
Shares of NASDAQ WBD opened at $27.99 on Friday. The stock has a market capitalization of $70.17 billion, a P/E ratio of -22.04 and a beta of 1.55. Warner Bros. Discovery, Inc. has a one year low of $11.25 and a one year high of $30.00. The firm's 50 day simple moving average is $26.54 and its two-hundred day simple moving average is $27.17. 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 (NASDAQ:WBD - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.06 earnings per share for the quarter, topping analysts' consensus estimates of ($0.14) by $0.20. The firm had revenue of $8.72 billion during the quarter, compared to analyst estimates 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 business's quarterly revenue was down 11.2% on a year-over-year basis. During the same period in the previous year, the business posted $0.63 EPS. As a group, analysts expect that Warner Bros. Discovery, Inc. will post -1.04 EPS for the current fiscal year.
Wall Street Analyst Weigh In
Several analysts have weighed in on WBD shares. Zacks Research downgraded 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 Warner Bros. Discovery from an "underweight" rating to an "overweight" rating in a research note on Monday, June 1st. Weiss Ratings reiterated a "sell (d-)" rating on shares of Warner Bros. Discovery in a report on Tuesday, August 4th. Guggenheim reissued a "neutral" rating on shares of Warner Bros. Discovery in a research note on Thursday, May 7th. Finally, UBS Group increased their target price on Warner Bros. Discovery from $30.00 to $31.00 and gave the company a "neutral" rating in a report on Thursday, May 7th. Two analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating, twelve have assigned a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $27.69.
View Our Latest Research Report on Warner Bros. Discovery
Trending Headlines about Warner Bros. Discovery
Here are the key news stories impacting Warner Bros. Discovery this week:
- Positive Sentiment: Merger expectations are supporting WBD. Warner Bros. Discovery and Paramount Skydance shares are rallying as recent market activity suggests the Hollywood megamerger’s closing odds may be improving. Paramount’s reported willingness to consider selling CNN to address antitrust concerns could help resolve a key obstacle. Paramount and Warner Bros. Stocks Are Rallying
- Positive Sentiment: Warner Bros.’ “The End of Oak Street” is targeting as much as $48 million globally in its debut. A strong theatrical opening could provide a modest near-term boost to studio and film-distribution sentiment, although the impact on WBD’s overall financial results is likely limited. The End of Oak Street targets global debut
- Neutral Sentiment: The merger remains tied up in antitrust litigation. The parties have outlined discovery and other pretrial deadlines, with the legal process potentially extending toward a March 2027 trial. The long timeline keeps merger-related volatility elevated and delays certainty for WBD shareholders. Paramount-WBD antitrust trial schedule
- Neutral Sentiment: Industry groups including the DGA and IATSE are urging a faster resolution to the Paramount-WBD legal standoff, while Teamsters members are protesting Paramount over merger-related commitments. The developments increase political and labor pressure but do not yet establish the transaction’s outcome. Teamsters protest Paramount over merger
- Neutral Sentiment: WBD announced incubator productions for Food Network and discovery+, supporting its content pipeline but offering limited immediate financial impact. WBD Food Network and discovery+ productions
- Negative Sentiment: Large insider sales may weigh on investor confidence. Director Kenneth Lowe sold 120,000 shares for approximately $3.24 million, and Gerhard Zeiler sold 591,038 shares worth about $15.99 million. The filings do not explain the motivations, but the sizable reductions can be viewed as a negative sentiment signal. Gerhard Zeiler WBD share sale
Institutional Investors Weigh In On Warner Bros. Discovery
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Harbor Investment Advisory LLC boosted its position in 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 buying an additional 496 shares during the period. Swiss RE Ltd. purchased a new position in shares of Warner Bros. Discovery in the fourth quarter valued at about $26,000. Elevation Wealth Partners LLC increased its position in shares of Warner Bros. Discovery by 64.3% in the second quarter. Elevation Wealth Partners LLC now owns 1,009 shares of the company's stock valued at $27,000 after acquiring an additional 395 shares during the period. Fideuram Asset Management Ireland dac purchased a new position in shares of Warner Bros. Discovery in the fourth quarter valued at about $29,000. Finally, MV Capital Management Inc. bought a new position in shares of Warner Bros. Discovery during the fourth quarter valued at about $30,000. 59.95% of the stock is currently owned by institutional investors.
Warner Bros. Discovery Company Profile
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Get Free Report)
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.
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