Argus Cuts Warner Bros. Discovery (NASDAQ:WBD) Price Target to $31.00

Warner Bros. Discovery (NASDAQ:WBD) had its price objective lowered by Argus from $32.00 to $31.00 in a research note released on Tuesday morning,MarketScreener reports. Argus currently has a buy rating on the stock.

A number of other research analysts have also recently weighed in on the company. Moffett Nathanson lifted their price objective on Warner Bros. Discovery from $26.00 to $31.00 and gave the company a “buy” rating in a research report on Friday, January 30th. Sanford C. Bernstein raised their target price on shares of Warner Bros. Discovery from $23.50 to $27.75 and gave the stock a “market perform” rating in a research note on Tuesday, February 24th. Rothschild & Co Redburn set a $31.00 price target on shares of Warner Bros. Discovery and gave the company a “neutral” rating in a report on Tuesday, February 17th. Huber Research cut shares of Warner Bros. Discovery from a “strong-buy” rating to a “strong sell” rating in a research note on Friday, February 27th. Finally, Deutsche Bank Aktiengesellschaft cut shares of Warner Bros. Discovery from a “buy” rating to a “hold” rating and lifted their target price for the company from $29.50 to $31.00 in a research note on Friday, February 27th. Six analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Warner Bros. Discovery presently has a consensus rating of “Hold” and an average target price of $25.34.

Warner Bros. Discovery Trading Up 0.2%

Shares of WBD stock opened at $28.00 on Tuesday. Warner Bros. Discovery has a 1 year low of $7.52 and a 1 year high of $30.00. The firm has a fifty day moving average price of $28.29 and a 200-day moving average price of $23.11. The company has a debt-to-equity ratio of 0.87, a current ratio of 1.06 and a quick ratio of 1.07. The company has a market cap of $69.38 billion, a price-to-earnings ratio of 96.56 and a beta of 1.60.

Warner Bros. Discovery (NASDAQ:WBD) last announced its earnings results on Thursday, February 26th. The company reported ($0.10) EPS for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.19). Warner Bros. Discovery had a return on equity of 1.98% and a net margin of 1.95%.The company had revenue of $9.46 billion during the quarter, compared to the consensus estimate of $9.33 billion. During the same period in the prior year, the business posted ($0.20) earnings per share. Warner Bros. Discovery’s revenue for the quarter was down 5.7% compared to the same quarter last year. As a group, equities analysts predict that Warner Bros. Discovery will post -4.33 earnings per share for the current year.

Insider Activity

In other Warner Bros. Discovery news, insider Gerhard Zeiler sold 600,000 shares of the stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $28.02, for a total transaction of $16,812,000.00. Following the completion of the transaction, the insider owned 672,649 shares of the company’s stock, valued at $18,847,624.98. This represents a 47.15% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Bruce Campbell sold 1,580,331 shares of Warner Bros. Discovery stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $28.00, for a total value of $44,249,268.00. Following the completion of the sale, the insider directly owned 690,028 shares in the company, valued at $19,320,784. This trade represents a 69.61% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 7,782,159 shares of company stock valued at $219,565,426 in the last quarter. Company insiders own 1.90% of the company’s stock.

Hedge Funds Weigh In On Warner Bros. Discovery

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Norges Bank purchased a new stake in shares of Warner Bros. Discovery during the 4th quarter worth approximately $1,123,807,000. Pacer Advisors Inc. grew its holdings in shares of Warner Bros. Discovery by 4,639.8% in the third quarter. Pacer Advisors Inc. now owns 22,788,847 shares of the company’s stock valued at $445,066,000 after purchasing an additional 22,308,046 shares in the last quarter. Vanguard Group Inc. increased its position in Warner Bros. Discovery by 7.1% in the third quarter. Vanguard Group Inc. now owns 281,214,155 shares of the company’s stock worth $5,492,112,000 after purchasing an additional 18,736,600 shares during the last quarter. Jericho Capital Asset Management L.P. raised its stake in Warner Bros. Discovery by 108.9% during the third quarter. Jericho Capital Asset Management L.P. now owns 35,095,390 shares of the company’s stock valued at $685,413,000 after purchasing an additional 18,291,865 shares in the last quarter. Finally, Sound Shore Management Inc CT bought a new position in Warner Bros. Discovery during the second quarter valued at $97,951,000. 59.95% of the stock is owned by institutional investors.

Warner Bros. Discovery News Roundup

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

• Positive Sentiment: Paramount + Skydance signed a definitive agreement to acquire Warner Bros. Discovery, a transformational M&A outcome that creates a likely takeover premium and a clearer strategic path (streaming consolidation, cable assets retained). This deal is the principal driver pushing shares higher. Paramount Skydance Deal Reshapes Warner Bros Discovery Outlook
• Positive Sentiment: Buyer-side commentary aims to reassure regulators and stakeholders: David Ellison (Paramount/Skydance) says CNN will operate independently under the new ownership, attempting to reduce political/regulatory friction that could slow or complicate the deal. David Ellison Vows CNN Will Operate Independently
• Neutral Sentiment: Analyst and commentary pieces are parsing the post-deal landscape (streaming subscribers, asset carve-outs, regulatory timeline); these help set expectations for deal close timing and integration risks but are not new catalysts by themselves. M&A Call / Slideshow
• Negative Sentiment: Large insider sales by multiple senior executives — CEO David Zaslav (4,004,149 shares, ~$113M), CFO Gunnar Wiedenfels (two sales totaling ~991,903 shares, ~$28M), and several other insiders — have been disclosed this week. Combined transactions exceed $200M, which investors may view as profit-taking or a signal the deal sponsors are cashing out; these filings are pressuring sentiment despite the takeover premium. Coverage of the executive sell-off is widespread. David Zaslav Cashing In Over $100 Million
• Negative Sentiment: An Argus research note issued a pessimistic forecast for WBD’s stock price, highlighting downside scenarios and adding headwinds to sentiment that could limit upside ahead of deal close or extend to post-close valuation concerns. Argus Issues Pessimistic Forecast
• Neutral Sentiment: Miscellaneous coverage (Netflix withdrawing a bid earlier, third-party debt trades reported in the press) provides context on the competitive/bid process but is unlikely to change the immediate takeover trajectory. Trump Bought Netflix Bonds Amid Paramount’s Fight

Warner Bros. Discovery Company Profile

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.