Engineers Gate Manager LP Buys New Stake in Warner Bros. Discovery, Inc. $WBD

Key Points

• Engineers Gate Manager LP initiated a new position in Warner Bros. Discovery during the fourth quarter, buying 694,656 shares valued at about $20.0 million.
• Warner Bros. Discovery’s latest earnings missed expectations, reporting EPS of -$1.17 versus the expected -$0.10, while revenue came in at $8.89 billion and was down 1% year over year.
• Investor focus remains on the Paramount Skydance merger, with reports that Chinese regulators and the DOJ have cleared the deal, which could support the stock’s merger-arbitrage upside since WBD still trades below the $31 cash buyout price.

Engineers Gate Manager LP bought a new stake in Warner Bros. Discovery, Inc. (NASDAQ:WBD - Free Report) in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm bought 694,656 shares of the company's stock, valued at approximately $20,020,000.

Other institutional investors have also recently added to or reduced their stakes in the company. Swiss RE Ltd. acquired a new stake in Warner Bros. Discovery in the 4th quarter valued at approximately $26,000. Fideuram Asset Management Ireland dac acquired a new position in shares of Warner Bros. Discovery in the fourth quarter worth $29,000. Rakuten Securities Inc. grew its stake 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 acquiring an additional 521 shares in the last quarter. TOWER TRUST & INVESTMENT Co grew its stake in shares of Warner Bros. Discovery by 4,730.8% in the fourth quarter. TOWER TRUST & INVESTMENT Co now owns 1,256 shares of the company's stock worth $36,000 after acquiring an additional 1,230 shares in the last quarter. Finally, Elyxium Wealth LLC acquired a new position in shares of Warner Bros. Discovery in the fourth quarter worth $44,000. Institutional investors and hedge funds own 59.95% of the company's stock.

Warner Bros. Discovery Stock Performance

Shares of WBD stock opened at $26.24 on Thursday. 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 firm has a fifty day moving average price of $27.07 and a 200 day moving average price of $27.62. The company has a market cap of $65.79 billion, a P/E ratio of -37.49 and a beta of 1.54. Warner Bros. Discovery, Inc. has a 12 month low of $10.27 and a 12 month high of $30.00.

Warner Bros. Discovery (NASDAQ:WBD - Get Free Report) last issued its 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 firm had revenue of $8.89 billion for the quarter, compared to analyst estimates 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% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.18) EPS. Sell-side analysts predict that Warner Bros. Discovery, Inc. will post -1.07 earnings per share for the current fiscal year.

Warner Bros. Discovery News Summary

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

• Positive Sentiment: Chinese regulators reportedly cleared the Paramount Skydance-Warner Bros. Discovery merger, removing another hurdle for the deal and boosting the odds that WBD shareholders receive the agreed cash value. Chinese regulators clear Paramount Skydance-Warner Bros Discovery merger, source says
• Positive Sentiment: Multiple reports say the DOJ has already approved the merger, which lowers regulatory risk and strengthens the merger-arbitrage case for WBD. Paramount Skydance wins DOJ approval for Warner Bros. Discovery merger
• Positive Sentiment: Market commentary highlights the deal as a major catalyst, noting WBD still trades below the $31 cash buyout price, leaving a potential merger-arbitrage spread for investors. Plot Twist: How the $110B Paramount-Warner Deal Rewrites Media
• Neutral Sentiment: Sector articles discussing APAC growth, local content, and broader streaming competition provide background on the media landscape, but do not appear to be a direct stock-moving catalyst for WBD today. Netflix, Prime Video, Disney and WBD on Local Content and APAC Growth
• Negative Sentiment: The stock also weakened in the latest session, with coverage pointing to WBD falling more than the broader market, reflecting ongoing investor caution despite the merger news. Here's Why Warner Bros. Discovery (WBD) Fell More Than Broader Market

Analysts Set New Price Targets

Several research firms have commented on WBD. Argus dropped their price target on shares of Warner Bros. Discovery from $32.00 to $31.00 and set a "buy" rating for the company in a research note on Tuesday, March 3rd. Benchmark restated a "hold" rating on shares of Warner Bros. Discovery in a research note on Friday, February 27th. Guggenheim restated a "neutral" rating on shares of Warner Bros. Discovery in a research note on Thursday, May 7th. Raymond James Financial restated an "underperform" rating on shares of Warner Bros. Discovery in a research note on Friday, February 27th. Finally, Moffett Nathanson upgraded shares of Warner Bros. Discovery from a "hold" rating to a "strong-buy" rating in a research note on Sunday, March 8th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, fourteen have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company currently 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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