Rothschild & Co Redburn Downgrades Warner Bros. Discovery (NASDAQ:WBD) to Hold

Warner Bros. Discovery (NASDAQ:WBD) was downgraded by analysts at Rothschild & Co Redburn from a “buy” rating to a “hold” rating in a research report issued on Tuesday, Marketbeat.com reports. They presently have a $31.00 price target on the stock. Rothschild & Co Redburn’s target price suggests a potential upside of 7.68% from the stock’s current price.

A number of other equities analysts also recently issued reports on the stock. Benchmark increased their price target on shares of Warner Bros. Discovery from $30.00 to $32.00 and gave the stock a “buy” rating in a research note on Thursday, January 15th. Morgan Stanley set a $29.00 target price on Warner Bros. Discovery in a research note on Thursday, December 18th. TD Cowen upped their price target on Warner Bros. Discovery from $14.00 to $22.00 in a research note on Friday, November 7th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $29.50 price objective on shares of Warner Bros. Discovery in a research report on Monday, December 8th. Finally, UBS Group boosted their price objective on shares of Warner Bros. Discovery from $20.00 to $30.00 and gave the stock a “neutral” rating in a research note on Wednesday, January 28th. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $25.09.

Warner Bros. Discovery Stock Up 0.1%

Shares of NASDAQ:WBD opened at $28.79 on Tuesday. The company has a debt-to-equity ratio of 0.90, a current ratio of 1.07 and a quick ratio of 1.07. Warner Bros. Discovery has a 1 year low of $7.52 and a 1 year high of $30.00. The company has a market cap of $71.34 billion, a PE ratio of 151.53 and a beta of 1.64. The stock’s 50-day moving average is $28.38 and its 200 day moving average is $21.91.

Insider Buying and Selling

In other news, CAO Lori C. Locke sold 5,000 shares of the firm’s stock in a transaction dated Monday, December 8th. The shares were sold at an average price of $27.62, for a total transaction of $138,100.00. Following the sale, the chief accounting officer owned 110,084 shares of the company’s stock, valued at $3,040,520.08. This trade represents a 4.34% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Gunnar Wiedenfels sold 242,994 shares of the stock in a transaction that occurred on Wednesday, December 10th. The shares were sold at an average price of $29.50, for a total transaction of $7,168,323.00. Following the transaction, the chief financial officer owned 918,940 shares in the company, valued at approximately $27,108,730. This trade represents a 20.91% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 267,116 shares of company stock valued at $7,781,731. 1.90% of the stock is owned by company insiders.

Institutional Trading of Warner Bros. Discovery

A number of hedge funds have recently bought and sold shares of the company. Concord Wealth Partners boosted its holdings in shares of Warner Bros. Discovery by 49.9% in the third quarter. Concord Wealth Partners now owns 1,321 shares of the company’s stock worth $26,000 after buying an additional 440 shares during the last quarter. Swiss RE Ltd. bought a new position in Warner Bros. Discovery in the fourth quarter worth approximately $26,000. Physician Wealth Advisors Inc. boosted its stake in shares of Warner Bros. Discovery by 152.1% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 1,404 shares of the company’s stock worth $27,000 after acquiring an additional 847 shares during the last quarter. Financial Gravity Companies Inc. bought a new stake in shares of Warner Bros. Discovery during the 2nd quarter valued at $29,000. Finally, Fideuram Asset Management Ireland dac bought a new stake in Warner Bros. Discovery during the fourth quarter valued at about $29,000. Hedge funds and other institutional investors own 59.95% of the company’s stock.

Warner Bros. Discovery News Summary

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

• Positive Sentiment: WBD has asked Paramount Skydance for a “best and final” offer, reopening the possibility of a bidding contest that could lift the takeover price and provide upside for shareholders. Warner Bros Seeks Paramount’s “Best and Final Offer,” Upside Ahead?
• Positive Sentiment: Paramount has indicated it could raise its cash offer (reports suggest $31+ per share), and Netflix has granted a short waiver — both actions increase the chance of a higher headline price or matching bids. Warner Reopens Talks With Paramount After Sweetened Offer
• Neutral Sentiment: WBD set a special shareholder meeting for March 20 and continues to recommend voting in favor of the Netflix transaction — a procedural step that keeps the Netflix deal as the baseline value for the company. Warner Bros. Discovery gives Paramount one week to present its ‘best and final’ offer
• Neutral Sentiment: Exhibitors remain cautious: Cinemark’s CEO said theater chains are “apprehensive” and want firmer commitments from Netflix on theatrical windows — this matters for regulatory optics and the valuation of theatrical rights. In Warner Merger Battle, Netflix Needs To Take “More Action” To Prove It Loves Movie Theaters, Cinemark CEO Says
• Negative Sentiment: The U.S. DOJ has begun private meetings with major theater chains to probe how a Warner sale would affect theaters — a regulatory risk that could complicate or slow approval of any transaction. US DOJ probes Warner Bros’ planned sale impact on theaters, Bloomberg News reports
• Negative Sentiment: Rothschild & Co Redburn downgraded WBD from Buy to Hold (now $31 PT), signaling more cautious analyst sentiment despite deal activity. Warner-Bros-downgraded-to-Neutral-from-Buy-at-Rothschild-&-Co-Redburn
• Negative Sentiment: Consensus analyst price target (~$24.94) sits below the current market level, and WBD warned of employee attrition risk if Paramount’s offer proceeds — both represent downside and execution risks. Warner Bros. Discovery, Inc. (NASDAQ:WBD) Receives $24.94 Consensus PT from Analysts Warner Bros. Discovery says it’s worried employees will quit if it picks Paramount’s offer

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.