Warner Bros. Discovery (NASDAQ:WBD) Earns “Underperform” Rating from Raymond James Financial

Warner Bros. Discovery (NASDAQ:WBD)‘s stock had its “underperform” rating reiterated by research analysts at Raymond James Financial in a research report issued to clients and investors on Friday, MarketBeat reports.

A number of other research analysts have also weighed in on the company. Arete Research upped their price objective on Warner Bros. Discovery from $30.00 to $35.00 and gave the stock a “buy” rating in a report on Thursday, December 11th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $29.50 target price on shares of Warner Bros. Discovery in a report on Monday, December 8th. Benchmark upped their price target on Warner Bros. Discovery from $30.00 to $32.00 and gave the stock a “buy” rating in a report on Thursday, January 15th. The Goldman Sachs Group lifted their price objective on Warner Bros. Discovery from $13.00 to $14.75 and gave the stock a “buy” rating in a report on Friday, November 7th. Finally, TD Cowen boosted their target price on Warner Bros. Discovery from $14.00 to $22.00 in a research report on Friday, November 7th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, sixteen have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Warner Bros. Discovery currently has a consensus rating of “Hold” and an average price target of $25.39.

Warner Bros. Discovery Stock Down 2.2%

Shares of NASDAQ:WBD opened at $28.17 on Friday. Warner Bros. Discovery has a fifty-two week low of $7.52 and a fifty-two week high of $30.00. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 0.90. The firm’s 50-day simple moving average is $28.37 and its 200-day simple moving average is $22.74. The company has a market cap of $69.80 billion, a price-to-earnings 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) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.09 by ($0.19). Warner Bros. Discovery had a return on equity of 1.99% and a net margin of 1.95%.The firm had revenue of $9.46 billion for the quarter, compared to analysts’ expectations of $9.33 billion. During the same period in the prior year, the company earned ($0.20) earnings per share. The company’s revenue for the quarter was down 5.7% on a year-over-year basis. As a group, equities research analysts predict that Warner Bros. Discovery will post -4.33 earnings per share for the current year.

Insider Transactions at Warner Bros. Discovery

In related news, CFO Gunnar Wiedenfels sold 242,994 shares of the business’s stock in a transaction dated Wednesday, December 10th. The shares were sold at an average price of $29.50, for a total value 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 position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CAO Lori C. Locke sold 4,122 shares of the firm’s stock in a transaction dated Wednesday, December 10th. The stock was sold at an average price of $28.92, for a total transaction of $119,208.24. Following the sale, the chief accounting officer directly owned 100,962 shares in the company, valued at $2,919,821.04. This represents a 3.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 257,116 shares of company stock valued at $7,546,331. 1.90% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Warner Bros. Discovery

Hedge funds have recently made changes to their positions in the business. JFS Wealth Advisors LLC lifted its position in Warner Bros. Discovery by 12.4% during the fourth quarter. JFS Wealth Advisors LLC now owns 3,425 shares of the company’s stock worth $99,000 after buying an additional 378 shares during the period. Salomon & Ludwin LLC increased its stake in shares of Warner Bros. Discovery by 20.2% during the 4th quarter. Salomon & Ludwin LLC now owns 2,494 shares of the company’s stock valued at $71,000 after acquiring an additional 419 shares during the last quarter. CYBER HORNET ETFs LLC increased its stake in shares of Warner Bros. Discovery by 7.1% during the 4th quarter. CYBER HORNET ETFs LLC now owns 6,396 shares of the company’s stock valued at $184,000 after acquiring an additional 425 shares during the last quarter. Root Financial Partners LLC lifted its holdings in shares of Warner Bros. Discovery by 17.5% during the 4th quarter. Root Financial Partners LLC now owns 2,879 shares of the company’s stock worth $83,000 after acquiring an additional 429 shares during the period. Finally, Optas LLC boosted its position in shares of Warner Bros. Discovery by 3.0% in the fourth quarter. Optas LLC now owns 15,120 shares of the company’s stock worth $436,000 after acquiring an additional 435 shares during the last quarter. Institutional investors and hedge funds own 59.95% of the company’s stock.

Trending Headlines about Warner Bros. Discovery

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.

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.