Warner Bros. Discovery (NASDAQ:WBD) Upgraded to “Strong-Buy” at Freedom Capital

Freedom Capital upgraded shares of Warner Bros. Discovery (NASDAQ:WBD) from a hold rating to a strong-buy rating in a research note published on Monday morning,Zacks.com reports.

A number of other analysts also recently weighed in on WBD. KeyCorp restated an “overweight” rating on shares of Warner Bros. Discovery in a report on Friday, April 24th. Huber Research raised Warner Bros. Discovery from an “underweight” rating to an “overweight” rating in a research note on Monday, June 1st. Weiss Ratings reiterated a “sell (d-)” rating on shares of Warner Bros. Discovery in a report on Tuesday, August 4th. UBS Group boosted their target price on Warner Bros. Discovery from $30.00 to $31.00 and gave the company a “neutral” rating in a research report on Thursday, May 7th. Finally, Seaport Research Partners lowered Warner Bros. Discovery from a “buy” rating to a “neutral” rating in a report on Monday, July 27th. Two equities research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, twelve have issued a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $27.69.

Warner Bros. Discovery Stock Up 0.7%

NASDAQ WBD opened at $27.07 on Monday. The stock has a 50 day moving average price of $26.48 and a 200-day moving average price of $27.17. Warner Bros. Discovery has a one year low of $10.79 and a one year high of $30.00. The company has a debt-to-equity ratio of 0.90, a quick ratio of 0.78 and a current ratio of 0.78. The company has a market capitalization of $67.87 billion, a P/E ratio of -21.31 and a beta of 1.55.

Warner Bros. Discovery (NASDAQ:WBD) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.06 earnings per share for the quarter, topping the consensus estimate of ($0.14) by $0.20. Warner Bros. Discovery had a negative net margin of 8.77% and a negative return on equity of 8.91%. The company had revenue of $8.72 billion for the quarter, compared to analysts’ expectations of $9.25 billion. During the same quarter in the previous year, the business posted $0.63 earnings per share. Warner Bros. Discovery’s quarterly revenue was down 11.2% on a year-over-year basis. As a group, equities analysts predict that Warner Bros. Discovery will post -1.15 EPS for the current fiscal year.

Institutional Trading of Warner Bros. Discovery

Several institutional investors have recently added to or reduced their stakes in WBD. Harbor Investment Advisory LLC lifted its stake in shares of Warner Bros. Discovery by 111.2% during the 2nd quarter. Harbor Investment Advisory LLC now owns 942 shares of the company’s stock worth $25,000 after acquiring an additional 496 shares during the last quarter. Swiss RE Ltd. bought a new position in Warner Bros. Discovery in the fourth quarter worth approximately $26,000. Elevation Wealth Partners LLC increased its holdings in Warner Bros. Discovery by 64.3% during the 2nd quarter. Elevation Wealth Partners LLC now owns 1,009 shares of the company’s stock worth $27,000 after purchasing an additional 395 shares during the period. Fideuram Asset Management Ireland dac purchased a new position in Warner Bros. Discovery during the 4th quarter worth $29,000. Finally, MV Capital Management Inc. bought a new stake in Warner Bros. Discovery during the 4th quarter valued at $30,000. Institutional investors own 59.95% of the company’s stock.

More Warner Bros. Discovery News

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

• Positive Sentiment: Merger progress and potential shareholder payments: Warner Bros. Discovery reportedly received UK clearance for its proposed approximately $110 billion takeover by Paramount Skydance. If the transaction closes, Paramount Skydance is expected to pay WBD shareholders a quarterly “ticking fee” beginning September 30 until completion, potentially supporting WBD’s value while investors await regulatory resolution. Warner Bros. Discovery Wins UK Clearance For $110 Billion Takeover
• Positive Sentiment: Quarterly earnings beat: WBD reported second-quarter adjusted earnings of $0.06 per share, surpassing the consensus estimate for a $0.14 loss. Streaming subscriber and margin gains helped offset weaker Studios and Global Linear Networks results. WBD Q2 Earnings Beat Estimates, Revenues Miss on Studios Weakness
• Positive Sentiment: Potential theatrical support: A proposed Paramount-WBD arrangement would guarantee exhibitors 30 exclusive theatrical releases annually, including 15 from WBD, with defined theatrical and streaming windows. If approved, the deal could provide more predictable studio distribution and strengthen the strategic rationale for the merger.
• Neutral Sentiment: Short-interest data is inconclusive: The reported August short-interest figure is zero shares, unchanged from a prior zero-share reading, with a zero-day short-interest ratio. The apparent “large increase” is mathematically inconsistent and likely reflects a data-reporting issue rather than a meaningful shift in investor positioning.
• Negative Sentiment: Antitrust uncertainty remains the principal risk: California Attorney General Rob Bonta is pursuing litigation to challenge the merger. Paramount CEO David Ellison reportedly threatened to begin moving Paramount out of California if negotiations do not produce a settlement, highlighting the escalating political and legal conflict. David Ellison Told Top Execs Paramount Will Exit California If AG Refuses To Negotiate Settlement In WBD Merger Suit
• Negative Sentiment: Underlying operating weakness persists: WBD’s quarterly revenue missed estimates, while Studios and Global Linear Networks remained weak. Reports also characterized recent film releases, including Supergirl and The Bride, as major box-office disappointments, reinforcing concerns about content performance and profitability.

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.