Warner Bros. Discovery (NASDAQ:WBD) Downgraded to Strong Sell Rating by Zacks Research

Zacks Research cut shares of Warner Bros. Discovery (NASDAQ:WBD) from a hold rating to a strong sell rating in a research note published on Monday,Zacks.com reports.

A number of other research analysts have also recently issued reports on the company. Guggenheim reiterated a “neutral” rating on shares of Warner Bros. Discovery in a research note on Thursday, May 7th. UBS Group increased their target price on Warner Bros. Discovery from $30.00 to $31.00 and gave the stock a “neutral” rating in a research note on Thursday, May 7th. KeyCorp restated an “overweight” rating on shares of Warner Bros. Discovery in a report on Friday, April 24th. Huber Research raised Warner Bros. Discovery from an “underweight” rating to an “overweight” rating in a research report on Monday, June 1st. Finally, Weiss Ratings cut shares of Warner Bros. Discovery from a “hold (c-)” rating to a “sell (d-)” rating in a research note on Thursday, May 7th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, twelve have given a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $27.04.

Warner Bros. Discovery Price Performance

Shares of NASDAQ WBD opened at $25.61 on Monday. The company has a 50 day simple moving average of $26.65 and a two-hundred day simple moving average of $27.34. Warner Bros. Discovery has a fifty-two week low of $10.76 and a fifty-two week high of $30.00. The company has a market capitalization of $64.21 billion, a price-to-earnings ratio of -36.59 and a beta of 1.54. The company has a debt-to-equity ratio of 0.92, a quick ratio of 0.73 and a current ratio of 0.73.

Warner Bros. Discovery (NASDAQ:WBD) last issued its quarterly earnings results on Wednesday, May 6th. The company reported ($1.17) EPS for the quarter, missing analysts’ consensus estimates of ($0.10) by ($1.07). The company had revenue of $8.89 billion during the quarter, compared to the consensus estimate of $8.89 billion. Warner Bros. Discovery had a negative return on equity of 4.77% and a negative net margin of 4.67%.The business’s revenue for the quarter was down 1.0% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.18) earnings per share. Analysts expect that Warner Bros. Discovery will post -1.07 EPS for the current fiscal year.

Institutional Trading of Warner Bros. Discovery

Several institutional investors have recently added to or reduced their stakes in WBD. Terril Brothers Inc. raised its stake in shares of Warner Bros. Discovery by 48.9% in the second quarter. Terril Brothers Inc. now owns 1,116,807 shares of the company’s stock worth $29,774,000 after purchasing an additional 366,861 shares during the last quarter. Avidian Wealth Enterprises LLC boosted its position in shares of Warner Bros. Discovery by 6.0% during the second quarter. Avidian Wealth Enterprises LLC now owns 9,837 shares of the company’s stock valued at $262,000 after buying an additional 561 shares during the last quarter. EverSource Wealth Advisors LLC increased its holdings in Warner Bros. Discovery by 11.3% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 8,384 shares of the company’s stock worth $224,000 after buying an additional 852 shares in the last quarter. Signaturefd LLC increased its holdings in Warner Bros. Discovery by 3.0% in the 2nd quarter. Signaturefd LLC now owns 37,752 shares of the company’s stock worth $1,006,000 after buying an additional 1,091 shares in the last quarter. Finally, RIA Advisory Group LLC bought a new stake in Warner Bros. Discovery in the 2nd quarter worth about $212,000. 59.95% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Warner Bros. Discovery

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

• Positive Sentiment: TKO CEO Ari Emanuel defended the Paramount-WBD merger, arguing that blocking the deal could damage Hollywood and that the combined company would be better positioned to compete in a rapidly changing entertainment market. TKO CEO Ari Emanuel Warns Blocking Paramount-WBD Merger Could Hurt Hollywood
• Positive Sentiment: Paramount chief executive David Ellison reiterated confidence that the WBD transaction will close, which may reassure investors that the deal remains active despite the delay and litigation. David Ellison Confident WBD Deal Will Close
• Neutral Sentiment: Coverage of Wall Street price targets provides context for valuation, but the range of expectations remains highly dependent on whether the Paramount transaction receives regulatory approval. Wall Street Analysts’ Target Price for Warner Bros. Discovery Stock
• Negative Sentiment: California and other states are pursuing an antitrust lawsuit to challenge the Paramount-WBD combination. SAG-AFTRA also opposes the deal, while some WBD executives reportedly hope the litigation stops it, increasing the risk of further delays or a failed transaction. SAG-AFTRA Opposes Paramount-WBD Deal
• Negative Sentiment: Seaport Research downgraded WBD to “neutral” from “buy” after the merger delay, citing insufficient regulatory clarity. The downgrade followed a broader pullback in the stock and highlights the near-term overhang on shares. Warner Bros Stock Downgraded After Paramount Merger Delay
• Negative Sentiment: WBD sued Amazon, alleging that Amazon improperly recruited HBO Max executives and seeking restrictions on future employee hiring. The litigation could create additional legal costs and operational disruption, although it may help WBD retain key talent. Warner Bros. Discovery Sues Amazon Over HBO Max Executive Hire

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.