Warner Bros. Discovery, Inc. (NASDAQ:WBD) Given Consensus Recommendation of “Moderate Buy” by Analysts

Warner Bros. Discovery, Inc. (NASDAQ:WBD) has been given an average recommendation of “Moderate Buy” by the twenty-five analysts that are presently covering the firm, MarketBeat Ratings reports. Twelve equities research analysts have rated the stock with a hold rating, eleven have given a buy rating and two have given a strong buy rating to the company. The average 1-year target price among brokerages that have issued a report on the stock in the last year is $24.75.

Several equities research analysts have recently commented on WBD shares. Morgan Stanley set a $29.00 target price on shares of Warner Bros. Discovery in a research report on Thursday, December 18th. Sanford C. Bernstein increased their price objective on Warner Bros. Discovery from $16.00 to $23.50 in a research note on Friday, November 7th. UBS Group set a $32.00 target price on Warner Bros. Discovery in a report on Thursday, January 15th. The Goldman Sachs Group upped their price target 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, Rothschild & Co Redburn upgraded Warner Bros. Discovery from a “neutral” rating to a “buy” rating and set a $28.00 price objective on the stock in a research note on Thursday, October 30th.

Warner Bros. Discovery Stock Up 0.8%

Shares of NASDAQ:WBD opened at $28.58 on Wednesday. Warner Bros. Discovery has a 1 year low of $7.52 and a 1 year high of $30.00. The company has a debt-to-equity ratio of 0.90, a current ratio of 1.07 and a quick ratio of 1.07. The business’s 50-day moving average is $27.21 and its 200-day moving average is $20.08. The company has a market capitalization of $70.82 billion, a price-to-earnings ratio of 150.43 and a beta of 1.56.

Warner Bros. Discovery (NASDAQ:WBD) last released its earnings results on Thursday, November 6th. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of ($0.04) by ($0.02). Warner Bros. Discovery had a return on equity of 1.34% and a net margin of 1.28%.The business had revenue of $9.05 billion for the quarter, compared to analyst estimates of $9.17 billion. During the same period in the prior year, the business earned $0.05 EPS. The company’s revenue for the quarter was down 6.0% on a year-over-year basis. Equities research analysts predict that Warner Bros. Discovery will post -4.33 earnings per share for the current year.

Trending Headlines about Warner Bros. Discovery

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

• Positive Sentiment: WBD says over 93% of shareholders have rejected Paramount’s “inferior scheme,” signaling strong shareholder support for the Netflix transaction and reducing near-term takeover uncertainty. Warner Bros. Discovery says over 93% of shareholders have rejected Paramount’s inferior scheme in favor of Netflix deal
• Positive Sentiment: Netflix executives publicly assert they are on track to win WBD shareholder backing and dismiss Paramount’s bid, which supports the probability of the Netflix all-cash $82.7B offer closing (boosts likelihood of deal premium for WBD holders). Netflix says Paramount bid ‘doesn’t pass sniff test’ as Warner battle intensifies, FT says
• Neutral Sentiment: Paramount Skydance has extended its hostile tender deadline to Feb. 20 — the extension buys Paramount time to persuade investors but hasn’t changed WBD’s board backing for Netflix; it prolongs deal uncertainty rather than resolving it. Paramount extends deadline on hostile Warner Bros bid to February 20
• Neutral Sentiment: Regulatory review — especially in Europe — is highlighted as a pivotal hurdle; even with shareholder backing, clearance remains uncertain and could materially affect timing and deal structure. Paramount is betting European regulators won’t approve WBD-Netflix. Here’s how it could play out
• Negative Sentiment: Paramount filed a lawsuit challenging the WBD-Netflix deal, which adds legal risk and could delay closing or increase deal costs if litigation succeeds or forces concessions. Paramount Files Lawsuit Against Warner Bros. Discovery Over Netflix Deal
• Negative Sentiment: Market weakness at Netflix (big recent share decline after its Q4 report) raises questions about Netflix’s financial and market strength to complete an $82.7B all-cash purchase, which could weigh on perceptions of deal certainty and WBD’s near-term premium. Netflix Stock Drops 35%+ After Q4 as WBD Deal Risk Rises
• Negative Sentiment: Regulatory and political scrutiny is intensifying — Netflix execs are slated to testify to U.S. lawmakers about the acquisition, increasing the chance of political/antitrust complications that could slow or block the transaction. Netflix’s Sarandos to testify in Senate hearing on Warner deal, Bloomberg News reports

Insider Activity

In related news, CAO Lori C. Locke sold 4,122 shares of the firm’s stock in a transaction dated Wednesday, December 10th. The shares were sold at an average price of $28.92, for a total transaction of $119,208.24. Following the transaction, the chief accounting officer directly owned 100,962 shares of the company’s stock, valued at $2,919,821.04. This trade represents a 3.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Gunnar Wiedenfels sold 242,994 shares of the company’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 sale, the chief financial officer directly owned 918,940 shares of the company’s stock, valued at $27,108,730. The trade was a 20.91% 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 489,326 shares of company stock valued at $12,781,456. 1.80% of the stock is currently owned by corporate insiders.

Institutional Trading of Warner Bros. Discovery

A number of institutional investors and hedge funds have recently modified their holdings of the business. JFS Wealth Advisors LLC increased its holdings in shares of Warner Bros. Discovery by 12.4% in the 4th 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 last quarter. Armstrong Advisory Group Inc. grew its position in Warner Bros. Discovery by 7.7% in the fourth quarter. Armstrong Advisory Group Inc. now owns 6,095 shares of the company’s stock worth $176,000 after acquiring an additional 436 shares in the last quarter. Concord Wealth Partners increased its stake in Warner Bros. Discovery by 49.9% during the third quarter. Concord Wealth Partners now owns 1,321 shares of the company’s stock worth $26,000 after acquiring an additional 440 shares during the last quarter. Howard Capital Management Inc. raised its position in Warner Bros. Discovery by 3.1% during the third quarter. Howard Capital Management Inc. now owns 15,559 shares of the company’s stock valued at $304,000 after purchasing an additional 474 shares during the period. Finally, Claro Advisors LLC lifted its stake in shares of Warner Bros. Discovery by 4.4% in the 3rd quarter. Claro Advisors LLC now owns 11,591 shares of the company’s stock valued at $226,000 after purchasing an additional 484 shares during the last quarter. 59.95% of the stock is owned by hedge funds and other institutional investors.

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.