Warner Bros. Discovery (NASDAQ:WBD) Given New $26.00 Price Target at TD Cowen

Warner Bros. Discovery (NASDAQ:WBD) had its price objective lifted by TD Cowen from $22.00 to $26.00 in a research report sent to investors on Friday, MarketBeat Ratings reports. They currently have a hold rating on the stock.

Several other equities research analysts have also issued reports on WBD. Deutsche Bank Aktiengesellschaft lowered shares of Warner Bros. Discovery from a “buy” rating to a “hold” rating and lifted their price target for the company from $29.50 to $31.00 in a report on Friday. Rothschild & Co Redburn set a $31.00 price objective on shares of Warner Bros. Discovery and gave the company a “neutral” rating in a research note on Tuesday, February 17th. Benchmark reaffirmed a “hold” rating on shares of Warner Bros. Discovery in a report on Friday. UBS Group boosted their price objective on shares of Warner Bros. Discovery from $20.00 to $30.00 and gave the company a “neutral” rating in a research report on Wednesday, January 28th. Finally, Weiss Ratings upgraded shares of Warner Bros. Discovery from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Monday. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, sixteen have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average price target of $25.39.

Warner Bros. Discovery Trading Down 2.2%

Shares of NASDAQ WBD traded down $0.63 during midday trading on Friday, hitting $28.17. The stock had a trading volume of 68,723,539 shares, compared to its average volume of 22,171,924. The company’s 50-day simple moving average is $28.37 and its 200 day simple moving average is $22.66. 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 fifty-two week low of $7.52 and a fifty-two week high of $30.00. The firm has a market cap of $69.80 billion, a P/E ratio of 97.14 and a beta of 1.64.

Warner Bros. Discovery (NASDAQ:WBD) last announced 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 business had revenue of $9.46 billion during the quarter, compared to the consensus estimate of $9.33 billion. During the same quarter last year, the company earned ($0.20) earnings per share. The firm’s revenue was down 5.7% compared to the same quarter last year. Research analysts anticipate that Warner Bros. Discovery will post -4.33 EPS for the current year.

Insider Buying and Selling at Warner Bros. Discovery

In related news, CAO Lori C. Locke sold 5,000 shares of Warner Bros. Discovery stock in a transaction 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 transaction, the chief accounting officer directly owned 110,084 shares of the company’s stock, valued at approximately $3,040,520.08. The trade was a 4.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CFO Gunnar Wiedenfels sold 242,994 shares of the business’s 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 completion of the transaction, the chief financial officer directly owned 918,940 shares of the company’s stock, valued at approximately $27,108,730. This represents a 20.91% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 257,116 shares of company stock valued at $7,546,331 over the last three months. 1.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its position in Warner Bros. Discovery by 0.7% in the fourth quarter. Vanguard Group Inc. now owns 283,180,433 shares of the company’s stock worth $8,161,260,000 after acquiring an additional 1,966,278 shares in the last quarter. Geode Capital Management LLC grew its position in Warner Bros. Discovery by 1.6% during the fourth quarter. Geode Capital Management LLC now owns 66,597,575 shares of the company’s stock worth $1,912,634,000 after buying an additional 1,028,346 shares in the last quarter. Invesco Ltd. boosted its position in shares of Warner Bros. Discovery by 2.8% during the 2nd quarter. Invesco Ltd. now owns 44,574,492 shares of the company’s stock valued at $510,824,000 after acquiring an additional 1,233,195 shares in the last quarter. Norges Bank bought a new position in shares of Warner Bros. Discovery during the fourth quarter valued at $1,123,807,000. Finally, Jericho Capital Asset Management L.P. grew its position in Warner Bros. Discovery by 108.9% during the 3rd quarter. Jericho Capital Asset Management L.P. now owns 35,095,390 shares of the company’s stock worth $685,413,000 after acquiring an additional 18,291,865 shares during the last quarter. Institutional investors and hedge funds own 59.95% of the company’s stock.

Key Headlines Impacting 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.