Warner Bros. Discovery (NASDAQ:WBD) Upgraded to “Hold” at Zacks Research

Zacks Research upgraded shares of Warner Bros. Discovery (NASDAQ:WBD) from a strong sell rating to a hold rating in a report issued on Tuesday morning,Zacks.com reports.

Other analysts also recently issued research reports about the stock. Guggenheim reissued a “neutral” rating on shares of Warner Bros. Discovery in a research report on Thursday, May 7th. Huber Research upgraded shares of Warner Bros. Discovery from an “underweight” rating to an “overweight” rating in a report on Monday, June 1st. Seaport Research Partners lowered shares of Warner Bros. Discovery from a “buy” rating to a “neutral” rating in a research note on Monday, July 27th. Freedom Capital upgraded shares of Warner Bros. Discovery from a “hold” rating to a “strong-buy” rating in a report on Monday, August 10th. Finally, UBS Group boosted their target price on shares of Warner Bros. Discovery from $30.00 to $31.00 and gave the stock a “neutral” rating in a research report on Thursday, May 7th. Two analysts have rated the stock with a Strong Buy rating, six have given a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, Warner Bros. Discovery currently has an average rating of “Hold” and a consensus target price of $27.69.

Warner Bros. Discovery Trading Down 0.5%

Shares of Warner Bros. Discovery stock opened at $28.75 on Tuesday. The company has a debt-to-equity ratio of 0.90, a quick ratio of 0.78 and a current ratio of 0.78. Warner Bros. Discovery has a 52 week low of $11.25 and a 52 week high of $30.00. The stock has a 50 day moving average price of $26.85 and a two-hundred day moving average price of $27.22. The stock has a market capitalization of $72.18 billion, a PE ratio of -22.64 and a beta of 1.55.

Warner Bros. Discovery (NASDAQ:WBD) last issued its earnings results 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. Warner Bros. Discovery had a negative return on equity of 8.91% and a negative net margin of 8.77%.The company had revenue of $8.72 billion for the quarter, compared to analyst estimates of $9.25 billion. During the same period in the prior year, the firm earned $0.63 earnings per share. Warner Bros. Discovery’s revenue for the quarter was down 11.2% on a year-over-year basis. As a group, equities analysts anticipate that Warner Bros. Discovery will post -1.11 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Gerhard Zeiler sold 591,038 shares of the company’s stock in a transaction on Monday, August 10th. The shares were sold at an average price of $27.05, for a total value of $15,987,577.90. Following the completion of the sale, the insider owned 537,436 shares in the company, valued at $14,537,643.80. This represents a 52.37% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO David Zaslav sold 194,999 shares of the stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $28.02, for a total transaction of $5,463,871.98. Following the completion of the sale, the chief executive officer owned 6,807,934 shares of the company’s stock, valued at approximately $190,758,310.68. This represents a 2.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 1,750,749 shares of company stock worth $48,329,633. 0.70% of the stock is owned by insiders.

Institutional Trading of Warner Bros. Discovery

Hedge funds have recently added to or reduced their stakes in the stock. Harbor Investment Advisory LLC raised 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 purchased a new stake in Warner Bros. Discovery during the 2nd quarter worth about $26,000. Swiss RE Ltd. purchased a new stake in shares of Warner Bros. Discovery in the fourth quarter worth about $26,000. Elevation Wealth Partners LLC grew its stake in Warner Bros. Discovery by 64.3% during 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 in the last quarter. Finally, Archer Investment Corp purchased a new position in Warner Bros. Discovery during the second quarter valued at approximately $27,000. Institutional investors own 59.95% of the company’s stock.

Trending Headlines about 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

About Warner Bros. Discovery

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.