Discovery Communications Inc. (DISCA) Downgraded by Zacks Investment Research to Sell
According to Zacks, “Discovery Communications’ bottom-line continues to be adversely impacted by adverse foreign currency movements which also has a negative impact on its international segment revenues. Additionally, concerns related to advertising revenues remain as these largely depend on viewer ratings. In fact, advertising revenues declined in the second quarter. The company’s top line is also threatened by lack of business diversification and customer concentration in U.S. Loss of the company’s key distributors stands to have a significant negative impact on the company. Although, we are positive on Discovery's decision to renew its distribution partnership with AT&T, it remains to be seen if the company can overcome challenges and grow its top-line.”
A number of other equities analysts have also recently issued reports on DISCA. JPMorgan Chase & Co. reiterated a hold rating on shares of Discovery Communications in a report on Saturday, July 9th. FBR & Co reiterated a hold rating on shares of Discovery Communications in a report on Thursday, August 4th. Loop Capital reiterated a buy rating and issued a $31.00 price objective on shares of Discovery Communications in a report on Saturday, September 3rd. Barrington Research cut Discovery Communications from an outperform rating to a market perform rating in a report on Thursday, September 29th. Finally, Jefferies Group reiterated a hold rating on shares of Discovery Communications in a report on Thursday, August 11th. Five equities research analysts have rated the stock with a sell rating, eleven have issued a hold rating and five have assigned a buy rating to the company’s stock. The company has a consensus rating of Hold and an average price target of $30.15.
Discovery Communications (NASDAQ:DISCA) traded up 0.95% on Tuesday, hitting $27.66. 1,256,800 shares of the company traded hands. Discovery Communications has a 12 month low of $23.66 and a 12 month high of $31.80. The stock has a market cap of $11.57 billion, a PE ratio of 15.04 and a beta of 1.59. The stock’s 50-day moving average is $25.78 and its 200 day moving average is $26.61.
Discovery Communications (NASDAQ:DISCA) last posted its earnings results on Tuesday, August 2nd. The company reported $0.56 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.54 by $0.02. Discovery Communications had a return on equity of 23.45% and a net margin of 18.06%. The business earned $1.71 billion during the quarter, compared to analysts’ expectations of $1.71 billion. During the same period in the previous year, the business earned $0.49 earnings per share. The firm’s revenue was up 3.3% on a year-over-year basis. Equities research analysts expect that Discovery Communications will post $1.97 earnings per share for the current fiscal year.
Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Hotchkis & Wiley Capital Management LLC raised its position in shares of Discovery Communications by 50.0% in the second quarter. Hotchkis & Wiley Capital Management LLC now owns 15,522,485 shares of the company’s stock valued at $391,632,000 after buying an additional 5,175,467 shares during the period. Vanguard Group Inc. increased its stake in Discovery Communications by 3.6% in the second quarter. Vanguard Group Inc. now owns 14,263,250 shares of the company’s stock valued at $359,862,000 after buying an additional 499,989 shares in the last quarter. Bank of New York Mellon Corp increased its stake in Discovery Communications by 4.8% in the second quarter. Bank of New York Mellon Corp now owns 9,458,803 shares of the company’s stock valued at $238,645,000 after buying an additional 437,438 shares in the last quarter. State Street Corp increased its stake in Discovery Communications by 10.1% in the second quarter. State Street Corp now owns 6,623,850 shares of the company’s stock valued at $167,122,000 after buying an additional 606,238 shares in the last quarter. Finally, BlackRock Institutional Trust Company N.A. increased its stake in Discovery Communications by 0.4% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 3,878,227 shares of the company’s stock valued at $97,848,000 after buying an additional 14,630 shares in the last quarter. Institutional investors and hedge funds own 40.59% of the company’s stock.
About Discovery Communications
Discovery Communications, Inc, (Discovery) is a global media company. The Company provides content across multiple distribution platforms, including pay-television (pay-TV), free-to-air and broadcast television, Websites, digital distribution arrangements and content licensing agreements. Its segments are U.S.
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