Calamos Advisors LLC Raises Stake in Warner Bros. Discovery, Inc. $WBD

Key Points

• Calamos Advisors LLC massively increased its Warner Bros. Discovery stake in Q1, boosting holdings by 817.7% to 1.15 million shares valued at about $31.6 million.
• Other institutional investors have also been adjusting positions, and hedge funds and institutions now own 59.95% of WBD’s stock, showing continued professional investor interest.
• The biggest current overhang is the proposed $110 billion Paramount Skydance-Warner Bros. Discovery merger, which faces a multi-state antitrust lawsuit and growing public criticism, increasing the risk of delay or derailment.

Calamos Advisors LLC increased its position in Warner Bros. Discovery, Inc. (NASDAQ:WBD - Free Report) by 817.7% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 1,150,350 shares of the company's stock after acquiring an additional 1,024,996 shares during the quarter. Calamos Advisors LLC's holdings in Warner Bros. Discovery were worth $31,589,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently made changes to their positions in the stock. Swiss RE Ltd. bought a new stake in Warner Bros. Discovery during the fourth quarter worth about $26,000. Fideuram Asset Management Ireland dac bought a new position in Warner Bros. Discovery during the 4th quarter valued at approximately $29,000. MV Capital Management Inc. purchased a new position in shares of Warner Bros. Discovery during the 4th quarter worth approximately $30,000. Rakuten Securities Inc. raised its holdings in 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 purchasing an additional 521 shares in the last quarter. Finally, JPL Wealth Management LLC bought a new position in shares of Warner Bros. Discovery in the 3rd quarter worth about $33,000. Hedge funds and other institutional investors 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: Unusually heavy call-option buying in Warner Bros. Discovery signals some traders are positioning for further upside, likely tied to merger speculation and takeover optionality.
• Neutral Sentiment: WBD stock has also been highlighted as rising even as the broader market slipped, suggesting the shares are being supported by event-driven trading rather than fundamentals alone.
• Negative Sentiment: California and 11 other states filed suit to block the $110 billion Paramount Skydance-Warner Bros. Discovery merger, arguing the deal is anti-competitive and could hurt consumers, theaters, and cable distributors. Reuters: US states tap private law firm Milbank fight Paramount-Warner Bros deal
• Negative Sentiment: The legal fight is intensifying, with states hiring top antitrust counsel and public officials, including New York City’s mayor, criticizing the deal as not serving the public interest, adding to the risk that the merger could be delayed or derailed. Deadline: Paramount-WBD Combo Is “Not A Merger That Serves The Public,” NYC Mayor Zohran Mamdani Says
• Negative Sentiment: Warner Bros. Discovery CEO David Zaslav also sold another $59 million of company stock, which may weigh on sentiment by signaling insider selling during a period of deal and regulatory uncertainty. MSN: David Zaslav Sells $59 Million More in Warner Bros. Discovery Stock

Analyst Ratings Changes

WBD has been the topic of a number of recent analyst reports. UBS Group increased their price target on shares of Warner Bros. Discovery from $30.00 to $31.00 and gave the company a "neutral" rating in a report on Thursday, May 7th. Guggenheim reissued a "neutral" rating on shares of Warner Bros. Discovery in a report on Thursday, May 7th. Zacks Research raised shares of Warner Bros. Discovery from a "strong sell" rating to a "hold" rating in a research note on Monday, June 1st. KeyCorp reissued an "overweight" rating on shares of Warner Bros. Discovery in a report on Friday, April 24th. Finally, Seaport Research Partners upgraded Warner Bros. Discovery from a "neutral" rating to a "buy" rating and set a $31.00 target price for the company in a research report on Monday, June 29th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, thirteen have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $27.04.

Warner Bros. Discovery Price Performance

Shares of WBD stock opened at $27.09 on Tuesday. The company has a current ratio of 0.73, a quick ratio of 0.73 and a debt-to-equity ratio of 0.92. The stock has a market capitalization of $67.92 billion, a price-to-earnings ratio of -38.70 and a beta of 1.54. Warner Bros. Discovery, Inc. has a twelve month low of $10.76 and a twelve month high of $30.00. The stock has a fifty day simple moving average of $26.85 and a two-hundred day simple moving average of $27.53.

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

Warner Bros. Discovery 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.

Want to see what other hedge funds are holding WBD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Warner Bros. Discovery, Inc. (NASDAQ:WBD - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.