Key Points
- Director Kenneth Lowe sold 200,000 WBD shares at an average price of $28.23, generating $5.65 million and reducing his ownership by 25.31% to 590,108 shares.
- Warner Bros. Discovery reported quarterly EPS of $0.06, exceeding estimates of a $0.14 loss, but revenue fell 11.2% year over year to $8.72 billion and the company remained unprofitable.
- The proposed Paramount acquisition remains the key catalyst, with regulatory negotiations potentially improving deal certainty but a reported $7 million daily ticking fee raising the cost of delays. Analysts maintain a consensus “Hold” rating with a $27.69 price target.
Warner Bros. Discovery, Inc. (NASDAQ:WBD - Get Free Report) Director Kenneth Lowe sold 200,000 shares of Warner Bros. Discovery stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $28.23, for a total value of $5,646,000.00. Following the completion of the transaction, the director owned 590,108 shares of the company's stock, valued at approximately $16,658,748.84. This trade represents a 25.31% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link.
Warner Bros. Discovery Trading Down 0.6%
Shares of Warner Bros. Discovery stock opened at $28.04 on Friday. The company's 50-day moving average price is $27.23 and its 200-day moving average price is $27.24. The company has a current ratio of 0.78, a quick ratio of 0.78 and a debt-to-equity ratio of 0.90. The company has a market cap of $70.40 billion, a price-to-earnings ratio of -22.08 and a beta of 1.57. Warner Bros. Discovery, Inc. has a 12-month low of $17.08 and a 12-month high of $30.00.
Warner Bros. Discovery (NASDAQ:WBD - Get Free Report) 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. The business 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 business's revenue for the quarter was down 11.2% compared to the same quarter last year. During the same period in the prior year, the company posted $0.63 EPS. On average, equities analysts expect that Warner Bros. Discovery, Inc. will post -1.11 earnings per share for the current fiscal year.
Hedge Funds Weigh In On Warner Bros. Discovery
Several institutional investors and hedge funds have recently made changes to their positions in the business. Venturi Wealth Management LLC lifted its stake in Warner Bros. Discovery by 4.5% in the first quarter. Venturi Wealth Management LLC now owns 8,462 shares of the company's stock worth $232,000 after purchasing an additional 367 shares during the last quarter. Krilogy Financial LLC grew its stake in shares of Warner Bros. Discovery by 2.6% during the first quarter. Krilogy Financial LLC now owns 14,809 shares of the company's stock valued at $406,000 after buying an additional 369 shares during the last quarter. Community Bank N.A. increased its holdings in shares of Warner Bros. Discovery by 9.9% in the second quarter. Community Bank N.A. now owns 4,170 shares of the company's stock worth $111,000 after buying an additional 374 shares during the period. Cromwell Holdings LLC increased its holdings in shares of Warner Bros. Discovery by 7.6% in the second quarter. Cromwell Holdings LLC now owns 5,467 shares of the company's stock worth $146,000 after buying an additional 386 shares during the period. Finally, Elevation Wealth Partners LLC lifted its stake in shares of Warner Bros. Discovery by 64.3% in the 2nd 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 last quarter. Institutional investors own 59.95% of the company's stock.
Warner Bros. Discovery News Roundup
Here are the key news stories impacting Warner Bros. Discovery this week:
- Positive Sentiment: Paramount is reportedly preparing to meet with state attorneys general in late October to discuss settlement terms related to its proposed acquisition of Warner Bros. Discovery. Paramount CEO David Ellison is also considering strategies to secure clearance in California. Progress toward resolving antitrust concerns could improve deal certainty and support WBD’s valuation. Paramount settlement talks article Paramount California clearance article
- Neutral Sentiment: The proposed transaction remains the dominant catalyst. However, a reported $7 million daily ticking fee is approaching, increasing the financial stakes if closing is delayed. Investors are likely focused on whether regulatory negotiations can prevent additional costs and keep the deal on schedule.
- Neutral Sentiment: Warner Bros. Discovery is promoting upcoming television programming and using youth-focused marketing to build interest in the Basketball World Cup. These initiatives may support audience engagement, but they are less material to near-term valuation than the Paramount transaction. Warner Bros. TV programming article Basketball World Cup marketing article
- Negative Sentiment: Two insiders sold a combined 462,285 shares worth approximately $13.0 million. Director Kenneth Lowe reduced his position by 25.31%, while insider Amy Girdwood cut hers by 32.72%. Although insider sales do not necessarily indicate deteriorating fundamentals, the size of the transactions can weigh on sentiment, particularly while WBD faces regulatory and execution risks. Kenneth Lowe SEC filing Amy Girdwood SEC filing
Analyst Ratings Changes
A number of research firms have recently issued reports on WBD. 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. Huber Research upgraded Warner Bros. Discovery from an "underweight" rating to an "overweight" rating in a research report on Monday, June 1st. Zacks Research raised Warner Bros. Discovery from a "strong sell" rating to a "hold" rating in a research note on Tuesday, August 25th. Seaport Research Partners cut Warner Bros. Discovery from a "buy" rating to a "neutral" rating in a report on Monday, July 27th. Finally, Freedom Capital upgraded Warner Bros. Discovery from a "hold" rating to a "strong-buy" rating in a report on Monday, August 10th. Two analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, twelve have issued a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $27.69.
View Our Latest Stock Report on WBD
About Warner Bros. Discovery
(
Get Free Report)
Warner Bros. Discovery, Inc is a global media and entertainment company that develops, produces and distributes television, film and digital content. Its portfolio includes Warner Bros. film and television studios, HBO, CNN, Discovery, TLC, HGTV, Food Network, TNT Sports and other well-known brands.
The company operates streaming services including Max, which features HBO programming, Warner Bros. films, original series and other entertainment content, and discovery+, which focuses on lifestyle, documentary and nonfiction programming.
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