TD Cowen Raises Warner Bros. Discovery (NASDAQ:WBD) Price Target to $26.00

Warner Bros. Discovery (NASDAQ:WBD) had its target price hoisted by TD Cowen from $22.00 to $26.00 in a note issued to investors on Friday,MarketScreener reports. The brokerage presently has a “hold” rating on the stock. TD Cowen’s target price indicates a potential downside of 7.78% from the company’s current price.

A number of other research firms also recently issued reports on WBD. UBS Group raised their price target on Warner Bros. Discovery from $20.00 to $30.00 and gave the stock a “neutral” rating in a research note on Wednesday, January 28th. Barrington Research downgraded shares of Warner Bros. Discovery from an “outperform” rating to a “hold” rating in a report on Friday, December 5th. Guggenheim cut Warner Bros. Discovery from a “buy” rating to a “neutral” rating and boosted their price objective for the company from $25.00 to $30.00 in a report on Wednesday, January 14th. Raymond James Financial reaffirmed an “underperform” rating on shares of Warner Bros. Discovery in a research report on Friday. Finally, The Goldman Sachs Group lifted their price target on Warner Bros. Discovery from $13.00 to $14.75 and gave the company a “buy” rating in a report on Friday, November 7th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, sixteen have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Warner Bros. Discovery presently has an average rating of “Hold” and a consensus target price of $25.39.

Warner Bros. Discovery Stock Down 2.1%

WBD stock traded down $0.61 during trading on Friday, hitting $28.19. 10,471,112 shares of the stock traded hands, compared to its average volume of 23,304,021. The company has a debt-to-equity ratio of 0.90, a current ratio of 1.07 and a quick ratio of 1.07. The stock has a market cap of $69.86 billion, a price-to-earnings ratio of 148.35 and a beta of 1.64. Warner Bros. Discovery has a 1 year low of $7.52 and a 1 year high of $30.00. The firm’s 50 day moving average is $28.36 and its two-hundred day moving average is $22.53.

Warner Bros. Discovery (NASDAQ:WBD) last announced its quarterly earnings results on Thursday, February 26th. The company reported ($0.10) earnings per share for the quarter, missing the consensus estimate of $0.09 by ($0.19). The firm had revenue of $9.46 billion for the quarter, compared to the consensus estimate of $9.33 billion. Warner Bros. Discovery had a net margin of 1.28% and a return on equity of 1.34%. Warner Bros. Discovery’s revenue was down 5.7% on a year-over-year basis. During the same period last year, the business earned ($0.20) EPS. On average, sell-side analysts anticipate that Warner Bros. Discovery will post -4.33 EPS for the current year.

Insider Transactions at Warner Bros. Discovery

In related news, CAO Lori C. Locke sold 5,000 shares of the stock in a transaction that occurred on Monday, December 8th. The shares were sold at an average price of $27.62, for a total value of $138,100.00. Following the transaction, the chief accounting officer owned 110,084 shares in the company, valued at approximately $3,040,520.08. This represents a 4.34% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Gunnar Wiedenfels sold 242,994 shares of Warner Bros. Discovery stock in a transaction that occurred on Wednesday, December 10th. The shares were sold at an average price of $29.50, for a total transaction of $7,168,323.00. Following the sale, the chief financial officer owned 918,940 shares of the company’s stock, valued at approximately $27,108,730. The trade was a 20.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 257,116 shares of company stock worth $7,546,331 over the last three months. Corporate insiders own 1.90% of the company’s stock.

Institutional Investors Weigh In On Warner Bros. Discovery

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Norges Bank purchased a new position in Warner Bros. Discovery in the 4th quarter valued at about $1,123,807,000. Pacer Advisors Inc. boosted its stake in Warner Bros. Discovery by 4,639.8% during the 3rd quarter. Pacer Advisors Inc. now owns 22,788,847 shares of the company’s stock worth $445,066,000 after purchasing an additional 22,308,046 shares during the last quarter. Vanguard Group Inc. grew its holdings in shares of Warner Bros. Discovery by 7.1% during the third quarter. Vanguard Group Inc. now owns 281,214,155 shares of the company’s stock worth $5,492,112,000 after buying an additional 18,736,600 shares in the last quarter. Jericho Capital Asset Management L.P. lifted its stake in shares of Warner Bros. Discovery by 108.9% in the third quarter. Jericho Capital Asset Management L.P. now owns 35,095,390 shares of the company’s stock worth $685,413,000 after buying an additional 18,291,865 shares in the last quarter. Finally, Sound Shore Management Inc CT purchased a new position in shares of Warner Bros. Discovery in the second quarter worth about $97,951,000. Hedge funds and other 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: WBD’s board says Paramount Skydance’s revised $31-per-share, all-cash proposal could be a “Company Superior Proposal,” increasing the probability of a $31 cash deal for shareholders; Paramount’s backers (notably Larry Ellison) pledged additional equity to shore up financing, reducing deal execution risk. PR Newswire: Paramount comments on WBD board determination
• Neutral Sentiment: Arete Research reaffirmed a “neutral” rating and set a $31.25 price target (about an 8.5% premium to current levels), signaling some upside tied to deal outcomes but not a buy recommendation absent clarity on the final bidder.
• Neutral Sentiment: Benchmark Co. reiterated a “hold” rating — another sign analysts see transaction risk and operational headwinds keeping conviction neutral until deal/regulatory path clears.
• Negative Sentiment: Warner Bros. Discovery missed Q4 EPS expectations (loss of $0.10 vs. consensus ~ $0.09) and reported ~6% revenue decline year-over-year, driven by legacy TV and studio weakness despite streaming subscriber growth — fundamentals that cap upside if a bidding war cools. MarketBeat: WBD earnings report
• Negative Sentiment: Raymond James reaffirmed an “underperform” rating, reflecting continued skepticism from some sell-side analysts about WBD’s growth trajectory and margin profile absent a favorable deal outcome.
• Negative Sentiment: News that Netflix has stepped back from raising its offer (and market commentary that Netflix may withdraw) reduces the chance of an escalating auction; while that helps Netflix’s stock, it raises downside risk for WBD shareholders if Paramount’s $31 turns out to be the final and only path — or if regulators/conditions alter the deal calculus. Reuters: Netflix declines to raise offer

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.