Warner Bros. Discovery, Inc. (NASDAQ:WBD) Stock Has Average Target Price of $28.34 According to Analysts

Warner Bros. Discovery, Inc. (NASDAQ:WBD) has been given a consensus rating of “Hold” by the twenty-two brokerages that are covering the stock, Marketbeat Ratings reports. Three research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating, four have issued a buy rating and two have issued a strong buy rating on the company. The average twelve-month price objective among analysts that have updated their coverage on the stock in the last year is $28.61.

WBD has been the topic of a number of research analyst reports. Zacks Research raised shares of Warner Bros. Discovery from a “strong sell” rating to a “hold” rating in a report on Tuesday, August 25th. Seaport Research Partners downgraded shares of Warner Bros. Discovery from a “buy” rating to a “neutral” rating in a report on Monday, July 27th. Argus reiterated a “sell” rating on shares of Warner Bros. Discovery in a research report on Tuesday, September 29th. Morgan Stanley increased their target price on Warner Bros. Discovery from $29.00 to $31.00 and gave the company an “equal weight” rating in a research note on Tuesday, September 22nd. Finally, Freedom Capital upgraded Warner Bros. Discovery from a “hold” rating to a “strong-buy” rating in a research report on Monday, August 10th.

Insider Activity

In other news, insider Gerhard Zeiler sold 591,038 shares of the stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $27.05, for a total transaction of $15,987,577.90. Following the transaction, the insider directly owned 537,436 shares in the company, valued at approximately $14,537,643.80. This represents a 52.37% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Kenneth Lowe sold 200,000 shares of the firm’s stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $28.23, for a total value of $5,646,000.00. Following the transaction, the director directly owned 590,108 shares in the company, valued at approximately $16,658,748.84. This represents a 25.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 2,782,149 shares of company stock worth $77,455,972. 0.70% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the business. CX Institutional grew its holdings in shares of Warner Bros. Discovery by 13.8% during the 3rd quarter. CX Institutional now owns 38,104 shares of the company’s stock valued at $1,179,000 after purchasing an additional 4,620 shares during the last quarter. Versant Capital Management Inc raised its position in Warner Bros. Discovery by 7.3% in the 3rd quarter. Versant Capital Management Inc now owns 13,408 shares of the company’s stock worth $415,000 after purchasing an additional 913 shares during the period. QRG Capital Management Inc. lifted its stake in Warner Bros. Discovery by 7.2% in the second quarter. QRG Capital Management Inc. now owns 299,996 shares of the company’s stock worth $7,998,000 after purchasing an additional 20,180 shares during the last quarter. Envestnet Portfolio Solutions Inc. lifted its stake in Warner Bros. Discovery by 9.3% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 14,447 shares of the company’s stock worth $385,000 after purchasing an additional 1,234 shares during the last quarter. Finally, Andra AP fonden boosted its position in Warner Bros. Discovery by 38.9% during the second quarter. Andra AP fonden now owns 718,435 shares of the company’s stock valued at $19,153,000 after buying an additional 201,200 shares during the period. 59.95% of the stock is owned by hedge funds and other institutional investors.

Warner Bros. Discovery Price Performance

Shares of NASDAQ WBD opened at $30.94 on Monday. Warner Bros. Discovery has a 12 month low of $17.08 and a 12 month high of $30.97. The company has a current ratio of 0.78, a quick ratio of 0.78 and a debt-to-equity ratio of 0.90. The firm has a market capitalization of $77.68 billion, a price-to-earnings ratio of -24.36 and a beta of 1.53. The business has a 50-day moving average of $28.27 and a 200-day moving average of $27.43.

Warner Bros. Discovery (NASDAQ:WBD) last announced its earnings results on Thursday, August 6th. The company reported $0.06 earnings per share for the quarter, beating analysts’ consensus estimates 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 business had revenue of $8.72 billion for the quarter, compared to the consensus estimate of $9.25 billion. During the same period last year, the firm posted $0.63 earnings per share. Warner Bros. Discovery’s quarterly revenue was down 11.2% on a year-over-year basis. Sell-side analysts expect that Warner Bros. Discovery will post -1.08 earnings per share for the current fiscal year.

Trending Headlines about Warner Bros. Discovery

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

• Positive Sentiment: Merger closing is now highly likely: Regulatory clearance and the announced October 6 closing date remove a major source of uncertainty. The combined company is expected to generate approximately $6 billion in cost savings, supporting the investment case if management can execute. Paramount-Warner Bros. Deal Cleared Despite Merger Opposition
• Positive Sentiment: Financing and operating plans are advancing: Paramount has priced substantial debt financing for the transaction, while shareholders are reportedly set to receive stock warrants. Management also highlighted that most expected cost savings should come from efficiencies rather than layoffs, which could reduce execution concerns. Paramount Shareholders to Get Stock Warrants in Warner Acquisition
• Positive Sentiment: Content opportunities could improve scale: Warner Bros. Discovery has signed a major programming agreement with ITV, and the enlarged company will combine extensive film, television, streaming, news and gaming assets. Warner Bros. Discovery Strikes Content Deal With ITV
• Neutral Sentiment: Combined company will be named Skydance: Paramount and Warner Bros. Discovery are expected to operate under the Skydance name after closing. The rebranding may help establish a unified corporate identity, but it also removes the Warner Bros. Discovery name from the public company. Paramount and Warner Bros. Discovery to Become Skydance
• Negative Sentiment: Leverage and transition risks remain: The acquisition financing includes tens of billions of dollars in secured notes and term loans, increasing interest obligations for the combined business. Warner Bros. studio executives Michael De Luca and Pamela Abdy are expected to depart, while WBD will leave the Nasdaq and major stock indexes after the merger, potentially creating technical selling pressure. Warner Bros. Stock Is About to Leave the Nasdaq

Warner Bros. Discovery Company Profile

Warner Bros. Discovery, Inc is a global media and entertainment company that creates, distributes and licenses television, film and digital content. Its portfolio includes Warner Bros. film and television studios, HBO and Max, CNN, Discovery, HGTV, Food Network, TLC, TNT Sports and other well-known entertainment, news, lifestyle and sports brands.

The company serves audiences through streaming platforms, cable and broadcast networks, theatrical releases, consumer products and content licensing.