Discovery Communications, Inc. (DISCA) Rating Lowered to Sell at Zacks Investment Research
Discovery Communications, Inc. (NASDAQ:DISCA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Tuesday.
According to Zacks, “Shares of Discovery Communications have underperformed its industry on a year-to-date basis. The stock has depreciated 21.4%, whereas its industry rallied 10.8% so far this year. In fact, the company has been struggling with declining advertisement revenues for quite some time. Adverse foreign currency movements are also hurting the company. Moreover, high costs are limiting bottom-line growth. The company's decision to buy Scripps Networks is, however, a positive. On materialization, the deal is expected to broaden Discovery's product portfolio, substantially. The multi-billion dollar deal is expected to close early next year. Discovery's efforts to reward its shareholders through dividends and buybacks raise optimism too. In the face of stiff competition and dwindling advertisement revenues, the media sector is witnessing large scale concentration.”
Other equities research analysts have also issued research reports about the stock. Citigroup Inc. raised shares of Discovery Communications from a “neutral” rating to a “buy” rating and lowered their target price for the stock from $30.00 to $29.00 in a report on Tuesday, August 1st. Royal Bank Of Canada reaffirmed a “buy” rating and issued a $32.00 target price on shares of Discovery Communications in a report on Friday, July 14th. Pivotal Research raised shares of Discovery Communications from a “hold” rating to a “buy” rating and set a $28.00 price objective on the stock in a report on Tuesday, August 8th. Jefferies Group LLC reissued a “hold” rating and set a $28.00 price objective on shares of Discovery Communications in a report on Friday, June 16th. Finally, BidaskClub raised shares of Discovery Communications from a “sell” rating to a “hold” rating in a report on Wednesday, June 14th. Five research analysts have rated the stock with a sell rating, thirteen have given a hold rating and three have given a buy rating to the company’s stock. Discovery Communications currently has an average rating of “Hold” and an average price target of $27.07.
Discovery Communications (NASDAQ:DISCA) traded down 1.22% on Tuesday, reaching $21.45. 868,520 shares of the company’s stock were exchanged. Discovery Communications has a 12 month low of $20.14 and a 12 month high of $30.25. The firm has a 50-day moving average of $21.78 and a 200-day moving average of $25.42. The firm has a market capitalization of $12.23 billion, a price-to-earnings ratio of 11.38 and a beta of 1.56.
Discovery Communications (NASDAQ:DISCA) last posted its earnings results on Monday, July 31st. The company reported $0.68 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.72 by ($0.04). Discovery Communications had a return on equity of 22.74% and a net margin of 16.88%. The firm had revenue of $1.75 billion during the quarter, compared to the consensus estimate of $1.76 billion. During the same period in the previous year, the company posted $0.71 EPS. The firm’s revenue for the quarter was up 2.2% compared to the same quarter last year. On average, equities analysts expect that Discovery Communications will post $2.24 earnings per share for the current year.
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In other news, CFO Gunnar Wiedenfels purchased 20,000 shares of the business’s stock in a transaction that occurred on Tuesday, August 1st. The shares were acquired at an average cost of $23.01 per share, for a total transaction of $460,200.00. Following the transaction, the chief financial officer now directly owns 20,000 shares of the company’s stock, valued at approximately $460,200. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Paul J. Guagliardo purchased 10,000 shares of the business’s stock in a transaction that occurred on Friday, August 18th. The stock was purchased at an average price of $22.71 per share, for a total transaction of $227,100.00. Following the completion of the transaction, the insider now directly owns 10,000 shares in the company, valued at $227,100. The disclosure for this purchase can be found here. Insiders purchased a total of 55,000 shares of company stock worth $1,243,300 over the last quarter. 6.81% of the stock is currently owned by corporate insiders.
Several large investors have recently made changes to their positions in DISCA. BlackRock Inc. raised its position in shares of Discovery Communications by 2,394.5% in the 1st quarter. BlackRock Inc. now owns 9,346,002 shares of the company’s stock valued at $271,875,000 after acquiring an additional 8,971,338 shares during the period. FMR LLC raised its position in shares of Discovery Communications by 32.7% in the 2nd quarter. FMR LLC now owns 4,938,569 shares of the company’s stock valued at $127,563,000 after acquiring an additional 1,216,517 shares during the period. Hotchkis & Wiley Capital Management LLC raised its position in shares of Discovery Communications by 5.2% in the 2nd quarter. Hotchkis & Wiley Capital Management LLC now owns 18,606,223 shares of the company’s stock valued at $480,599,000 after acquiring an additional 917,632 shares during the period. Vanguard Group Inc. raised its position in shares of Discovery Communications by 5.4% in the 2nd quarter. Vanguard Group Inc. now owns 16,661,316 shares of the company’s stock valued at $430,362,000 after acquiring an additional 858,015 shares during the period. Finally, Bridgewater Associates LP acquired a new stake in shares of Discovery Communications in the 2nd quarter valued at approximately $14,672,000. Institutional investors and hedge funds own 45.84% 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 (FTA) and broadcast television, Websites, digital distribution arrangements and content licensing agreements. Its segments include U.S.
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