Warner Bros. Discovery Target of Unusually Large Options Trading (NASDAQ:WBD)

Warner Bros. Discovery, Inc. (NASDAQ:WBD) was the recipient of unusually large options trading activity on Friday. Stock traders bought 232,659 put options on the stock. This is an increase of approximately 71% compared to the average volume of 135,877 put options.

Analyst Upgrades and Downgrades

WBD has been the subject of a number of research analyst reports. Rothschild & Co Redburn set a $31.00 price target on shares of Warner Bros. Discovery and gave the stock a “neutral” rating in a report on Tuesday, February 17th. Moffett Nathanson raised their target price on Warner Bros. Discovery from $26.00 to $31.00 and gave the stock a “buy” rating in a research note on Friday, January 30th. The Goldman Sachs Group increased their price objective on Warner Bros. Discovery from $13.00 to $14.75 and gave the company a “buy” rating in a report on Friday, November 7th. Wells Fargo & Company lifted their target price on Warner Bros. Discovery from $21.00 to $25.00 and gave the stock an “equal weight” rating in a report on Friday, November 7th. Finally, Raymond James Financial reiterated an “underperform” rating on shares of Warner Bros. Discovery in a report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, sixteen have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Warner Bros. Discovery currently has a consensus rating of “Hold” and a consensus target price of $25.39.

Key Warner Bros. Discovery News

Here are the key news stories impacting Warner Bros. Discovery this week:

• Positive Sentiment: WBD’s board has signaled Paramount Skydance’s $31-per-share proposal could be a “company superior proposal,” meaning WBD shareholders may get a cash premium if that deal closes. PR Newswire: Paramount comments on WBD board determination
• Positive Sentiment: Some analysts are nudging price targets higher (Deutsche Bank set a $31 target; Sanford Bernstein also raised its target), signaling that street expectations for deal value or post-deal upside have shifted. MarketScreener: Deutsche Bank adjusts PT to $31
• Positive Sentiment: Streaming remains a bright spot: HBO Max/HBO subscribers climbed (reports near ~131–132M), which supports the core content value that buyers covet. Deadline: HBO Max subscriber growth
• Neutral Sentiment: Market-wide weakness (oil- and geopolitical-driven futures drop) is pressuring stocks broadly this morning and may be amplifying WBD’s move independent of company-specific news. Zacks: Oil surges amid Middle East risks
• Neutral Sentiment: Netflix has formally stepped back from increasing its bid, ending the most intense phase of the multi‑billion bidding war — that resolves some uncertainty but also caps the auction-driven upside for WBD shares. Reuters: Netflix, Paramount shares jump as fight ends
• Negative Sentiment: WBD reported Q4 EPS of -$0.10, missing consensus and showing a year-over-year revenue decline (~6%), underscoring legacy TV/film weakness that weakens standalone fundamentals if a deal fails. MarketBeat: WBD Q4 earnings report
• Negative Sentiment: Regulatory and political hurdles remain significant — California is flagged as a key obstacle and broader antitrust/political scrutiny could delay or block a Paramount takeover, adding execution risk to any deal thesis. Reuters: California obstacle to Paramount takeover Deadline: Regulatory scrutiny continues
• Negative Sentiment: UK cinemas and some filmmakers warn consolidation could cut releases and jobs, creating reputational and political headwinds that can feed regulatory resistance. Reuters: UK cinemas wary of Paramount victory

Warner Bros. Discovery Stock Performance

NASDAQ:WBD traded down $0.60 during trading hours on Friday, reaching $28.21. The company had a trading volume of 40,950,955 shares, compared to its average volume of 24,182,912. 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 firm has a market cap of $69.89 billion, a PE ratio of 148.46 and a beta of 1.64. The business’s 50 day moving average price is $28.36 and its 200-day moving average price is $22.53. Warner Bros. Discovery has a 1-year low of $7.52 and a 1-year high of $30.00.

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

Insider Activity at Warner Bros. Discovery

In other Warner Bros. Discovery news, CAO Lori C. Locke sold 4,122 shares of the company’s stock in a transaction dated Wednesday, December 10th. The shares were sold at an average price of $28.92, for a total value of $119,208.24. Following the transaction, the chief accounting officer directly owned 100,962 shares in the company, valued at $2,919,821.04. This represents a 3.92% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Gunnar Wiedenfels sold 242,994 shares of the company’s stock in a transaction on Wednesday, December 10th. The stock was sold at an average price of $29.50, for a total value of $7,168,323.00. Following the sale, the chief financial officer owned 918,940 shares of the company’s stock, valued at $27,108,730. This trade represents a 20.91% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 257,116 shares of company stock worth $7,546,331. Company insiders own 1.90% of the company’s stock.

Institutional Investors Weigh In On Warner Bros. Discovery

Hedge funds and other institutional investors have recently made changes to their positions in the business. JFS Wealth Advisors LLC grew its position in Warner Bros. Discovery by 12.4% in the fourth quarter. JFS Wealth Advisors LLC now owns 3,425 shares of the company’s stock worth $99,000 after acquiring an additional 378 shares in the last quarter. Salomon & Ludwin LLC boosted its stake in shares of Warner Bros. Discovery by 20.2% during the 4th quarter. Salomon & Ludwin LLC now owns 2,494 shares of the company’s stock valued at $71,000 after purchasing an additional 419 shares in the last quarter. CYBER HORNET ETFs LLC raised its stake in Warner Bros. Discovery by 7.1% in the fourth quarter. CYBER HORNET ETFs LLC now owns 6,396 shares of the company’s stock worth $184,000 after buying an additional 425 shares in the last quarter. Root Financial Partners LLC lifted its holdings in Warner Bros. Discovery by 17.5% in the fourth quarter. Root Financial Partners LLC now owns 2,879 shares of the company’s stock worth $83,000 after buying an additional 429 shares during the period. Finally, Optas LLC raised its holdings in Warner Bros. Discovery by 3.0% in the 4th quarter. Optas LLC now owns 15,120 shares of the company’s stock worth $436,000 after acquiring an additional 435 shares during the last quarter. 59.95% of the stock is currently owned by institutional investors and hedge funds.

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.