Warner Bros. Discovery (NASDAQ:WBD) Stock Price Expected to Rise, TD Cowen Analyst Says

Warner Bros. Discovery (NASDAQ:WBD) had its target price boosted by investment analysts at TD Cowen from $22.00 to $26.00 in a report released on Friday, Marketbeat reports. The firm presently has a “hold” rating on the stock. TD Cowen’s price objective suggests a potential downside of 7.70% from the stock’s previous close.

A number of other analysts have also weighed in on the company. The Goldman Sachs Group upped their target price on Warner Bros. Discovery from $13.00 to $14.75 and gave the stock a “buy” rating in a report on Friday, November 7th. Rothschild & Co Redburn set a $31.00 price target on Warner Bros. Discovery and gave the stock a “neutral” rating in a research report on Tuesday, February 17th. Argus raised their price objective on Warner Bros. Discovery from $28.00 to $32.00 and gave the company a “buy” rating in a research report on Tuesday, January 27th. Barrington Research lowered Warner Bros. Discovery from an “outperform” rating to a “hold” rating in a research note on Friday, December 5th. Finally, Benchmark reissued a “hold” rating on shares of Warner Bros. Discovery in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, sixteen have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $25.39.

Warner Bros. Discovery Stock Down 2.2%

NASDAQ:WBD opened at $28.17 on Friday. 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 50-day moving average of $28.37 and a 200 day moving average of $22.74. The firm has a market cap of $69.80 billion, a PE ratio of 97.14 and a beta of 1.64.

Warner Bros. Discovery (NASDAQ:WBD) last posted its quarterly earnings results on Thursday, February 26th. The company reported ($0.10) EPS for the quarter, missing the consensus estimate of $0.09 by ($0.19). Warner Bros. Discovery had a net margin of 1.95% and a return on equity of 1.99%. The business had revenue of $9.46 billion during the quarter, compared to the consensus estimate of $9.33 billion. During the same quarter in the prior year, the firm posted ($0.20) EPS. The company’s revenue for the quarter was down 5.7% compared to the same quarter last year. As a group, research analysts anticipate that Warner Bros. Discovery will post -4.33 EPS for the current fiscal year.

Insider Activity

In other news, CFO Gunnar Wiedenfels sold 242,994 shares of the company’s stock in a transaction dated 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 $27,108,730. This represents a 20.91% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CAO Lori C. Locke sold 5,000 shares of Warner Bros. Discovery stock in a transaction that occurred on Monday, December 8th. The stock was 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 of the company’s stock, valued at $3,040,520.08. This trade represents a 4.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 257,116 shares of company stock worth $7,546,331. Corporate insiders own 1.90% of the company’s stock.

Institutional Investors Weigh In On Warner Bros. Discovery

A number of large investors have recently made changes to their positions in the stock. TriaGen Wealth Management LLC acquired a new position in Warner Bros. Discovery during the third quarter worth $443,000. Penserra Capital Management LLC raised its holdings in shares of Warner Bros. Discovery by 29,882.6% in the 2nd quarter. Penserra Capital Management LLC now owns 62,064 shares of the company’s stock valued at $710,000 after buying an additional 61,857 shares during the period. Charles Schwab Investment Management Inc. lifted its stake in Warner Bros. Discovery by 7.4% during the 2nd quarter. Charles Schwab Investment Management Inc. now owns 19,463,234 shares of the company’s stock worth $223,049,000 after acquiring an additional 1,333,005 shares in the last quarter. Swedbank AB boosted its holdings in Warner Bros. Discovery by 3.7% during the 3rd quarter. Swedbank AB now owns 1,065,445 shares of the company’s stock valued at $20,808,000 after acquiring an additional 37,986 shares during the period. Finally, Universal Beteiligungs und Servicegesellschaft mbH grew its position in Warner Bros. Discovery by 1.0% in the 2nd quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 1,572,301 shares of the company’s stock valued at $18,019,000 after acquiring an additional 16,006 shares in the last quarter. 59.95% of the stock is owned by hedge funds and other institutional investors.

Warner Bros. Discovery News Roundup

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

• Positive Sentiment: Paramount’s acquisition agreement announced — a $31-per-share cash deal values WBD at roughly $110 billion and is now a formal merger agreement, creating a clear path to a cash exit for shareholders. PR Newswire
• Positive Sentiment: Netflix exits the bidding — Netflix declined to raise its offer after Paramount’s $31 bid was declared superior, reducing takeover uncertainty and making a Paramount close more likely. Reuters
• Positive Sentiment: EU approval expected to be manageable — sources tell Reuters the deal is likely to clear EU antitrust scrutiny with only minor divestments if required, lowering one regulatory hurdle. Reuters
• Neutral Sentiment: Analyst reactions mixed — several firms updated ratings/targets (TD Cowen raised its PT to $26 but kept a hold; Deutsche Bank moved to hold with a $31 PT), reflecting divided views on deal certainty and standalone fundamentals. MarketScreener (TD Cowen) MarketScreener (Deutsche Bank)
• Negative Sentiment: Q4 results disappointed — WBD posted a loss per share and revenue declined ~6% year/year, missing EPS expectations and underscoring legacy TV/studio weakness despite streaming growth. That weak print amplifies uncertainty around valuation and growth prospects. WBD press release / earnings
• Negative Sentiment: Employee and synergy risk — CNBC reports WBD staff fear layoffs if Paramount pursues roughly $6B of cost synergies; job cuts and integration execution could create operational disruption and headline risk. CNBC
• Negative Sentiment: Political/regulatory friction remains — California and other political actors could still slow the deal; state-level opposition and broader antitrust scrutiny remain possible roadblocks. Reuters
• Negative Sentiment: Options and sentiment signal volatility — today saw an unusually large spike in put option volume, indicating elevated hedging/speculative bearish positioning even as a cash deal price anchors the stock.

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.