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

Warner Bros. Discovery (NASDAQ:WBD) had its price objective reduced by Argus from $32.00 to $31.00 in a research note issued to investors on Tuesday,MarketScreener reports. They currently have a buy rating on the stock.

Several other equities analysts also recently commented on WBD. Raymond James Financial reiterated an “underperform” rating on shares of Warner Bros. Discovery in a report on Friday, February 27th. Moffett Nathanson raised their price target on shares of Warner Bros. Discovery from $26.00 to $31.00 and gave the stock a “buy” rating in a research report on Friday, January 30th. Guggenheim downgraded shares of Warner Bros. Discovery from a “buy” rating to a “neutral” rating and lifted their price target for the company from $25.00 to $30.00 in a research report on Wednesday, January 14th. Morgan Stanley set a $29.00 price target on Warner Bros. Discovery in a research note on Thursday, December 18th. Finally, Barrington Research downgraded Warner Bros. Discovery from an “outperform” rating to a “hold” rating in a research report on Friday, December 5th. Six research analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, Warner Bros. Discovery currently has a consensus rating of “Hold” and an average target price of $25.34.

Warner Bros. Discovery Trading Down 1.1%

Shares of Warner Bros. Discovery stock opened at $28.20 on Tuesday. The stock has a market cap of $69.88 billion, a P/E ratio of 97.24 and a beta of 1.60. The company has a quick ratio of 1.07, a current ratio of 1.06 and a debt-to-equity ratio of 0.87. Warner Bros. Discovery has a 12-month low of $7.52 and a 12-month high of $30.00. The business’s 50 day moving average is $28.34 and its 200-day moving average is $23.04.

Warner Bros. Discovery (NASDAQ:WBD) last announced its quarterly earnings data 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 net margin of 1.95% and a return on equity of 1.98%. The firm had revenue of $9.46 billion during the quarter, compared to the consensus estimate of $9.33 billion. During the same period last year, the business earned ($0.20) EPS. The business’s revenue was down 5.7% on a year-over-year basis. Equities research analysts predict that Warner Bros. Discovery will post -4.33 earnings per share for the current fiscal year.

Insider Transactions at Warner Bros. Discovery

In other Warner Bros. Discovery news, CFO Gunnar Wiedenfels sold 242,994 shares of the business’s stock in a transaction dated Wednesday, December 10th. The stock was sold at an average price of $29.50, for a total transaction of $7,168,323.00. Following the completion of the transaction, 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Lori C. Locke sold 5,000 shares of the firm’s stock in a transaction that occurred on Monday, December 8th. The shares were sold at an average price of $27.62, for a total transaction of $138,100.00. Following the completion of the sale, the chief accounting officer owned 110,084 shares in the company, valued at approximately $3,040,520.08. The trade was a 4.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 257,116 shares of company stock worth $7,546,331. Company insiders own 1.80% of the company’s stock.

Hedge Funds Weigh In On Warner Bros. Discovery

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Ovata Capital Management Ltd bought a new stake in shares of Warner Bros. Discovery in the fourth quarter worth $340,000. Caitong International Asset Management Co. Ltd lifted its holdings in Warner Bros. Discovery by 1,097.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,580 shares of the company’s stock worth $46,000 after buying an additional 1,448 shares during the period. Reflection Asset Management bought a new stake in shares of Warner Bros. Discovery in the 4th quarter valued at about $63,000. Strategic Investment Solutions Inc. IL increased its stake in shares of Warner Bros. Discovery by 684.0% in the fourth quarter. Strategic Investment Solutions Inc. IL now owns 10,710 shares of the company’s stock valued at $309,000 after buying an additional 9,344 shares during the period. Finally, Alpine Global Management LLC bought a new position in shares of Warner Bros. Discovery during the fourth quarter worth about $6,773,000. 59.95% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Warner Bros. Discovery

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

• Positive Sentiment: WBD’s board has backed PSKY’s revised $31-per-share all-cash bid, which secures a firm take-private path and sets a clear near-term valuation floor for shareholders. Can WBD Capitalize on PSKY’s Modified Proposal to Drive Value?
• Positive Sentiment: Regulatory friction appears limited: FCC Chair Brendan Carr publicly called the deal “cleaner” than prior bids and said it should be approved quickly, lowering regulatory execution risk. FCC chief tells CNBC WBD-Paramount merger deal is ‘cleaner’ than Netflix’s, will be approved ‘quickly’
• Positive Sentiment: S&P says the WBD deal would “materially improve” Warner Bros. Discovery’s business profile, implying longer-term strategic upside if integration and execution go smoothly. S&P Weighs In On Media Mega-Merger
• Neutral Sentiment: Argus trimmed its WBD price target to $31 but kept a Buy rating — a modest analyst signal of constrained upside relative to the deal price but not a change in endorsement. Argus Adjusts Price Target on Warner Bros. Discovery
• Negative Sentiment: Fitch downgraded Paramount’s credit to junk following the acquisition, increasing financing and refinancing risk for the acquirer and raising the chance of future cost or deal renegotiation that could unsettle WBD equity value. Paramount credit ratings downgraded by Fitch after Warner Bros deal
• Negative Sentiment: Paramount’s CEO said the combined company will carry roughly $79 billion net debt — a heavy leverage load that increases execution risk and could pressure cashflow/ratings over time. Paramount CEO says Warner Bros tie-up to carry $79 billion net debt
• Negative Sentiment: WBD reported a Q4 earnings miss (linear TV and studio weakness), which reinforces near-term fundamental pressure independent of the takeover dynamics. WBD Q4 Earnings Miss on Linear TV Decline and Studios Weakness

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.