Crcm LP Purchases New Shares in Warner Bros. Discovery, Inc. $WBD

Key Points

• Crcm LP bought 1.5 million shares of Warner Bros. Discovery in the fourth quarter, a position worth about $43.2 million and representing 14.6% of its portfolio.
• Two Warner Bros. Discovery directors sold shares in March, including Paul A. Gould’s sale of 600,000 shares, while insiders still hold only 1.90% of the company.
• The biggest market catalyst is the reported DOJ clearance of Paramount Skydance’s proposed acquisition of Warner Bros. Discovery, which could improve merger odds and potentially boost shareholder value.

Crcm LP purchased a new stake in Warner Bros. Discovery, Inc. (NASDAQ:WBD - Free Report) in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm purchased 1,500,000 shares of the company's stock, valued at approximately $43,230,000. Warner Bros. Discovery accounts for approximately 14.6% of Crcm LP's investment portfolio, making the stock its 4th biggest position. Crcm LP owned 0.06% of Warner Bros. Discovery as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also modified their holdings of the company. Swiss RE Ltd. acquired a new position in shares of Warner Bros. Discovery in the 4th quarter valued at $26,000. Fideuram Asset Management Ireland dac acquired a new position in shares of Warner Bros. Discovery in the 4th quarter valued at $29,000. Rakuten Securities Inc. boosted its position in shares of Warner Bros. Discovery by 81.5% in the 4th quarter. Rakuten Securities Inc. now owns 1,160 shares of the company's stock valued at $33,000 after purchasing an additional 521 shares during the period. TOWER TRUST & INVESTMENT Co boosted its position in shares of Warner Bros. Discovery by 4,730.8% in the 4th quarter. TOWER TRUST & INVESTMENT Co now owns 1,256 shares of the company's stock valued at $36,000 after purchasing an additional 1,230 shares during the period. Finally, Elyxium Wealth LLC acquired a new position in shares of Warner Bros. Discovery in the 4th quarter valued at $44,000. Institutional investors and hedge funds own 59.95% of the company's stock.

Insider Transactions at Warner Bros. Discovery

In other news, Director Paul A. Gould sold 600,000 shares of the firm's stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $27.35, for a total transaction of $16,410,000.00. Following the completion of the sale, the director directly owned 244,357 shares of the company's stock, valued at $6,683,163.95. This trade represents a 71.06% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Fazal F. Merchant sold 35,000 shares of the firm's stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $27.48, for a total value of $961,800.00. Following the sale, the director directly owned 95,539 shares of the company's stock, valued at $2,625,411.72. This trade represents a 26.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.90% of the stock is owned by company insiders.

Key Headlines Impacting Warner Bros. Discovery

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

• Positive Sentiment: The DOJ reportedly cleared Paramount Skydance’s acquisition of Warner Bros. Discovery, removing a key antitrust obstacle and improving the chances the deal closes. Justice Department says Paramount's Warner deal wouldn't harm competition
• Positive Sentiment: Reports that the merger was approved helped fuel speculation that Warner Bros. Discovery shareholders could benefit from a takeover premium if the deal advances. Paramount-WBD merger wins approval from DOJ, source says
• Neutral Sentiment: Shareholders rejected David Zaslav’s proposed $165 million pay package for 2025 in a non-binding vote, which adds governance noise but is not likely to change the near-term merger story. Warner Bros. Shareholders Reject David Zaslav's $165 Million Pay Package for 2025

Warner Bros. Discovery Trading Up 0.4%

Shares of NASDAQ WBD opened at $26.98 on Friday. Warner Bros. Discovery, Inc. has a one year low of $9.98 and a one year high of $30.00. The firm has a market capitalization of $67.64 billion, a PE ratio of -38.54 and a beta of 1.54. 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 business has a 50-day moving average price of $27.12 and a two-hundred day moving average price of $27.53.

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 analysts' consensus estimates of ($0.10) by ($1.07). Warner Bros. Discovery had a negative return on equity of 4.77% and a negative net margin of 4.67%.The firm had revenue of $8.89 billion for the quarter, compared to analysts' expectations of $8.89 billion. During the same period last year, the business earned ($0.18) earnings per share. The firm's revenue for the quarter was down 1.0% on a year-over-year basis. As a group, analysts predict that Warner Bros. Discovery, Inc. will post -1.07 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of equities research analysts have commented on the company. Weiss Ratings lowered Warner Bros. Discovery from a "hold (c-)" rating to a "sell (d-)" rating in a research report on Thursday, May 7th. Huber Research upgraded Warner Bros. Discovery from an "underweight" rating to an "overweight" rating in a research report on Monday, June 1st. Benchmark restated a "hold" rating on shares of Warner Bros. Discovery in a research report on Friday, February 27th. Rothschild & Co Redburn set a $31.00 price objective on Warner Bros. Discovery and gave the stock a "neutral" rating in a research report on Tuesday, February 17th. Finally, Deutsche Bank Aktiengesellschaft lowered Warner Bros. Discovery from a "buy" rating to a "hold" rating and raised their price objective for the stock from $29.50 to $31.00 in a research report on Friday, February 27th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, fourteen have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $27.04.

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.

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