Bank of Nova Scotia Purchases 738,783 Shares of Warner Bros. Discovery, Inc. $WBD

Key Points

• Bank of Nova Scotia increased its Warner Bros. Discovery stake by 17.3% in the first quarter, buying 738,783 more shares and bringing its total holdings to nearly 5.0 million shares worth about $137.3 million.
• Warner Bros. Discovery reported a mixed latest quarter, with EPS of -$1.17 missing expectations while revenue came in at $8.89 billion, matching estimates but still down 1% year over year.
• Investor sentiment is being shaped by Paramount Skydance’s acquisition of WBD, which has cleared an EU hurdle but still faces legal and execution risks, even as analysts continue to view WBD as a strategic takeover target.

Bank of Nova Scotia raised its holdings in shares of Warner Bros. Discovery, Inc. (NASDAQ:WBD - Free Report) by 17.3% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 4,998,709 shares of the company's stock after buying an additional 738,783 shares during the period. Bank of Nova Scotia owned about 0.20% of Warner Bros. Discovery worth $137,265,000 at the end of the most recent quarter.

Several other institutional investors have also added to or reduced their stakes in the business. Swiss RE Ltd. bought a new position in Warner Bros. Discovery in the 4th quarter worth approximately $26,000. Fideuram Asset Management Ireland dac purchased a new stake in Warner Bros. Discovery during the 4th quarter valued at approximately $29,000. MV Capital Management Inc. bought a new stake in shares of Warner Bros. Discovery during the fourth quarter valued at approximately $30,000. JPL Wealth Management LLC bought a new stake in shares of Warner Bros. Discovery during the third quarter valued at approximately $33,000. Finally, Rakuten Securities Inc. lifted its holdings in shares of Warner Bros. Discovery by 81.5% in the fourth quarter. Rakuten Securities Inc. now owns 1,160 shares of the company's stock worth $33,000 after buying an additional 521 shares in the last quarter. 59.95% of the stock is currently owned by institutional investors.

Warner Bros. Discovery Price Performance

Shares of WBD stock opened at $25.95 on Friday. The company has a market capitalization of $65.06 billion, a P/E ratio of -37.07 and a beta of 1.54. The company's 50-day simple moving average is $26.74 and its two-hundred day simple moving average is $27.40. Warner Bros. Discovery, Inc. has a one year low of $10.76 and a one year high of $30.00. The company has a debt-to-equity ratio of 0.92, a current ratio of 0.73 and a quick ratio of 0.73.

Warner Bros. Discovery (NASDAQ:WBD - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The company reported ($1.17) earnings per share for the quarter, missing the consensus estimate of ($0.10) by ($1.07). The company had revenue of $8.89 billion for the quarter, compared to the consensus estimate of $8.89 billion. Warner Bros. Discovery had a negative net margin of 4.67% and a negative return on equity of 4.77%. The business's revenue was down 1.0% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.18) EPS. As a group, equities analysts anticipate that Warner Bros. Discovery, Inc. will post -1.07 EPS for the current year.

Key Stories Impacting Warner Bros. Discovery

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

• Positive Sentiment: Warner Bros. Discovery received European Commission approval for the Paramount Skydance acquisition, removing a major international regulatory hurdle and improving the odds that the deal can eventually close. European Commission Approves Paramount Skydance Corporation Acquisition of Warner Bros. Discovery
• Positive Sentiment: Analysts and market commentary continue to frame the media sector as entering a consolidation phase, which supports the view that WBD remains a strategic takeover target. The Netflix-Lionsgate Rumor Exposed a Bigger Shift in Media M&A (WBD)
• Neutral Sentiment: The EU approval came with conditions, including changes to Paramount’s distribution arrangements, so the deal still faces execution risk even after the regulatory green light. EU regulators clear with conditions Paramount's $110 billion bid for Warner Bros
• Negative Sentiment: A federal judge paused the Paramount-WBD transaction through mid-August while considering lawsuits from state attorneys general and the Writers Guild, extending the timeline and adding legal uncertainty. Paramount-Warner Bros deal paused through August 17, judge rules
• Negative Sentiment: Heavy put-option buying suggests some traders are positioning for downside or hedging against a failed or delayed deal. Traders Buy Large Volume of Put Options on Warner Bros. Discovery NASDAQ: WBD

Analyst Ratings Changes

A number of brokerages have recently weighed in on WBD. Weiss Ratings lowered Warner Bros. Discovery from a "hold (c-)" rating to a "sell (d-)" rating in a research report on Thursday, May 7th. Zacks Research upgraded Warner Bros. Discovery from a "strong sell" rating to a "hold" rating in a research report on Monday, June 1st. UBS Group increased their price target on Warner Bros. Discovery from $30.00 to $31.00 and gave the company a "neutral" rating in a research note on Thursday, May 7th. Seaport Research Partners raised Warner Bros. Discovery from a "neutral" rating to a "buy" rating and set a $31.00 price objective on the stock in a research note on Monday, June 29th. Finally, Guggenheim reaffirmed a "neutral" rating on shares of Warner Bros. Discovery in a report on Thursday, May 7th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, thirteen have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $27.04.

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.

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