Envestnet Asset Management Inc. Sells 48,221 Shares of Warner Bros. Discovery, Inc. $WBD

Key Points

• Envestnet Asset Management cut its Warner Bros. Discovery stake by 13.6%, selling 48,221 shares and retaining 305,613 shares valued at approximately $8.15 million. Institutional investors and hedge funds collectively own 59.95% of WBD.
• Company insiders sold 2.78 million shares worth roughly $77.5 million during the past quarter, while analysts’ consensus rating remains “Hold” with an average price target of $28.61.
• WBD beat quarterly earnings expectations with adjusted EPS of $0.06 but missed revenue estimates, reporting $8.72 billion in revenue, down 11.2% year over year. The pending Paramount Skydance merger could provide cost-saving opportunities but also brings higher leverage, executive departures and potential index-related selling pressure.

Envestnet Asset Management Inc. reduced its position in Warner Bros. Discovery, Inc. (NASDAQ:WBD - Free Report) by 13.6% in the 2nd quarter, according to its most recent filing with the SEC. The fund owned 305,613 shares of the company's stock after selling 48,221 shares during the period. Envestnet Asset Management Inc.'s holdings in Warner Bros. Discovery were worth $8,147,000 at the end of the most recent quarter.

A number of other large investors have also recently made changes to their positions in the company. Venturi Wealth Management LLC increased its holdings in shares of Warner Bros. Discovery by 4.5% in the 1st quarter. Venturi Wealth Management LLC now owns 8,462 shares of the company's stock valued at $232,000 after acquiring an additional 367 shares during the period. Krilogy Financial LLC raised its position in Warner Bros. Discovery by 2.6% in the 1st quarter. Krilogy Financial LLC now owns 14,809 shares of the company's stock valued at $406,000 after purchasing an additional 369 shares during the last quarter. Community Bank N.A. boosted its stake in Warner Bros. Discovery by 9.9% during the 2nd quarter. Community Bank N.A. now owns 4,170 shares of the company's stock worth $111,000 after purchasing an additional 374 shares during the period. Cromwell Holdings LLC boosted its stake in Warner Bros. Discovery by 7.6% during the 2nd quarter. Cromwell Holdings LLC now owns 5,467 shares of the company's stock worth $146,000 after purchasing an additional 386 shares during the period. Finally, Elevation Wealth Partners LLC grew its position in Warner Bros. Discovery by 64.3% during the 2nd quarter. Elevation Wealth Partners LLC now owns 1,009 shares of the company's stock worth $27,000 after purchasing an additional 395 shares during the last quarter. 59.95% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other Warner Bros. Discovery news, Director Kenneth Lowe sold 200,000 shares of the firm's stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $28.23, for a total transaction of $5,646,000.00. Following the completion of the transaction, the director directly owned 590,108 shares in the company, valued at approximately $16,658,748.84. This trade represents a 25.31% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Amy Girdwood sold 262,285 shares of Warner Bros. Discovery stock in a transaction dated Wednesday, September 9th. The stock was sold at an average price of $27.98, for a total transaction of $7,338,734.30. Following the transaction, the insider owned 539,374 shares of the company's stock, valued at approximately $15,091,684.52. The trade was a 32.72% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 2,782,149 shares of company stock valued at $77,455,972. Company insiders own 0.70% of the company's stock.

Warner Bros. Discovery Price Performance

Shares of NASDAQ:WBD opened at $30.94 on Friday. The firm has a market capitalization of $77.68 billion, a price-to-earnings ratio of -24.36 and a beta of 1.53. The company has a debt-to-equity ratio of 0.90, a current ratio of 0.78 and a quick ratio of 0.78. The business's 50 day simple moving average is $28.27 and its 200-day simple moving average is $27.43. Warner Bros. Discovery, Inc. has a 12 month low of $17.08 and a 12 month high of $30.97.

Warner Bros. Discovery (NASDAQ:WBD - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.06 earnings per share for the quarter, beating the consensus estimate of ($0.14) by $0.20. The firm had revenue of $8.72 billion during the quarter, compared to the consensus estimate of $9.25 billion. Warner Bros. Discovery had a negative return on equity of 8.91% and a negative net margin of 8.77%.Warner Bros. Discovery's quarterly revenue was down 11.2% on a year-over-year basis. During the same period last year, the business posted $0.63 EPS. As a group, equities analysts forecast that Warner Bros. Discovery, Inc. will post -1.08 earnings per share for the current fiscal year.

Key Warner Bros. Discovery News

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

• Positive Sentiment: Merger closing is now highly likely: Regulatory clearance and the announced October 6 closing date remove a major source of uncertainty. The combined company is expected to generate approximately $6 billion in cost savings, supporting the investment case if management can execute. Paramount-Warner Bros. Deal Cleared Despite Merger Opposition
• Positive Sentiment: Financing and operating plans are advancing: Paramount has priced substantial debt financing for the transaction, while shareholders are reportedly set to receive stock warrants. Management also highlighted that most expected cost savings should come from efficiencies rather than layoffs, which could reduce execution concerns. Paramount Shareholders to Get Stock Warrants in Warner Acquisition
• Positive Sentiment: Content opportunities could improve scale: Warner Bros. Discovery has signed a major programming agreement with ITV, and the enlarged company will combine extensive film, television, streaming, news and gaming assets. Warner Bros. Discovery Strikes Content Deal With ITV
• Neutral Sentiment: Combined company will be named Skydance: Paramount and Warner Bros. Discovery are expected to operate under the Skydance name after closing. The rebranding may help establish a unified corporate identity, but it also removes the Warner Bros. Discovery name from the public company. Paramount and Warner Bros. Discovery to Become Skydance
• Negative Sentiment: Leverage and transition risks remain: The acquisition financing includes tens of billions of dollars in secured notes and term loans, increasing interest obligations for the combined business. Warner Bros. studio executives Michael De Luca and Pamela Abdy are expected to depart, while WBD will leave the Nasdaq and major stock indexes after the merger, potentially creating technical selling pressure. Warner Bros. Stock Is About to Leave the Nasdaq

Analyst Ratings Changes

A number of research analysts have commented on WBD shares. Seaport Research Partners lowered shares of Warner Bros. Discovery from a "buy" rating to a "neutral" rating in a research note on Monday, July 27th. Barclays assumed coverage on shares of Warner Bros. Discovery in a research note on Thursday, September 17th. They set an "equal weight" rating and a $29.00 target price for the company. Argus reissued a "sell" rating on shares of Warner Bros. Discovery in a report on Tuesday. Freedom Capital upgraded Warner Bros. Discovery from a "hold" rating to a "strong-buy" rating in a research report on Monday, August 10th. Finally, Zacks Research raised Warner Bros. Discovery from a "strong sell" rating to a "hold" rating in a research note on Tuesday, August 25th. Two research analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, thirteen have issued a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $28.61.

Warner Bros. Discovery Company Profile

Warner Bros. Discovery, Inc is a global media and entertainment company that creates, distributes and licenses television, film and digital content. Its portfolio includes Warner Bros. film and television studios, HBO and Max, CNN, Discovery, HGTV, Food Network, TLC, TNT Sports and other well-known entertainment, news, lifestyle and sports brands.

The company serves audiences through streaming platforms, cable and broadcast networks, theatrical releases, consumer products and content licensing.

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