Ethic Inc. Grows Stock Holdings in Warner Bros. Discovery, Inc. $WBD

Key Points

• Ethic Inc. increased its stake in Warner Bros. Discovery by 20.3% in the fourth quarter, adding 48,474 shares to reach 287,464 shares valued at about $8.3 million.
• Institutional ownership remains heavy, with hedge funds and other investors holding about 59.95% of WBD shares. Several large firms, including Vanguard and Jericho Capital, also boosted their positions.
• Warner Bros. Discovery’s latest earnings were weak, as it reported a $1.17 per-share loss versus a much smaller expected loss, while revenue was essentially in line but still down 1% year over year.

Ethic Inc. raised its position in shares of Warner Bros. Discovery, Inc. (NASDAQ:WBD - Free Report) by 20.3% in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 287,464 shares of the company's stock after buying an additional 48,474 shares during the period. Ethic Inc.'s holdings in Warner Bros. Discovery were worth $8,285,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors have also modified their holdings of the company. Vanguard Group Inc. boosted its holdings in Warner Bros. Discovery by 7.1% in the third quarter. Vanguard Group Inc. now owns 281,214,155 shares of the company's stock valued at $5,492,112,000 after purchasing an additional 18,736,600 shares during the period. Jericho Capital Asset Management L.P. boosted its holdings in Warner Bros. Discovery by 108.9% in the third quarter. Jericho Capital Asset Management L.P. now owns 35,095,390 shares of the company's stock valued at $685,413,000 after purchasing an additional 18,291,865 shares during the period. Duquesne Family Office LLC purchased a new position in Warner Bros. Discovery in the second quarter valued at $74,916,000. Allianz Asset Management GmbH boosted its holdings in Warner Bros. Discovery by 170.1% in the third quarter. Allianz Asset Management GmbH now owns 9,326,978 shares of the company's stock valued at $182,156,000 after purchasing an additional 5,873,183 shares during the period. Finally, Amundi lifted its holdings in Warner Bros. Discovery by 59.6% during the 3rd quarter. Amundi now owns 15,523,538 shares of the company's stock worth $296,189,000 after buying an additional 5,798,592 shares during the last quarter. 59.95% of the stock is currently owned by hedge funds and other institutional investors.

Warner Bros. Discovery Stock Performance

NASDAQ WBD opened at $27.11 on Friday. The company has a current ratio of 0.73, a quick ratio of 1.06 and a debt-to-equity ratio of 0.92. The business's 50 day moving average is $27.48 and its two-hundred day moving average is $26.66. Warner Bros. Discovery, Inc. has a 12-month low of $8.82 and a 12-month high of $30.00. The stock has a market capitalization of $67.96 billion, a price-to-earnings ratio of -38.73 and a beta of 1.57.

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 analysts' consensus estimates 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 period in the previous year, the company posted ($0.18) EPS. Warner Bros. Discovery's quarterly revenue was down 1.0% compared to the same quarter last year. Research analysts expect that Warner Bros. Discovery, Inc. will post -0.15 EPS for the current year.

More Warner Bros. Discovery News

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

• Positive Sentiment: Streaming remains a bright spot, with Warner Bros. Discovery topping 140 million subscribers and management highlighting strong momentum in its direct-to-consumer business. Warner Bros. Discovery Earnings Call Highlights Streaming Surge
• Positive Sentiment: HBO Max was described by David Zaslav as likely the company’s “most important asset,” reinforcing the value of WBD’s streaming platform as a key long-term driver. David Zaslav Says HBO Max Is “Probably” Warner Bros. Discovery’s “Most Important Asset”
• Neutral Sentiment: Warner Bros. TV announced special podcast episodes for The Pitt, a small content-related update that may help engagement but is unlikely to materially move the stock. Warner Bros TV Announces Special Podcast Episodes For “The Pitt”
• Neutral Sentiment: Guggenheim reiterated a neutral rating, signaling analysts are waiting for clearer evidence that earnings and the strategic outlook are improving. Guggenheim Reaffirms Neutral Rating on Warner Bros. Discovery
• Negative Sentiment: Q1 results missed expectations, with WBD posting a $1.17 per-share loss versus a much smaller expected loss, while revenue came in just below estimates and declined year over year. Warner Bros. Discovery reports Q1 CY2026 in line with expectations
• Negative Sentiment: The quarter was heavily burdened by a $2.8 billion Netflix termination fee and restructuring costs, which drove a roughly $2.9 billion net loss and overshadowed operational progress. Warner Bros. Discovery posts wider Q1 loss driven by $2.8B Netflix termination fee
• Negative Sentiment: Media coverage focused on the large loss and weaker-than-expected results, reinforcing concerns that near-term earnings are still being weighed down by one-time and integration-related charges. Warner Bros. Discovery Logs $2.92 Billion Loss Tied to Netflix Termination Fee

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on the company. KeyCorp reaffirmed an "overweight" rating on shares of Warner Bros. Discovery in a report on Friday, April 24th. Huber Research downgraded Warner Bros. Discovery from a "strong-buy" rating to a "strong sell" rating in a report on Friday, February 27th. Argus decreased their price target on Warner Bros. Discovery from $32.00 to $31.00 and set a "buy" rating for the company in a report on Tuesday, March 3rd. Arete Research reaffirmed a "neutral" rating and set a $31.25 price target on shares of Warner Bros. Discovery in a report on Friday, February 27th. Finally, Raymond James Financial reaffirmed an "underperform" rating on shares of Warner Bros. Discovery in a report on Friday, February 27th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, thirteen have assigned a Hold rating and four have assigned a Sell rating to the company's stock. According to data from MarketBeat, Warner Bros. Discovery currently has a consensus rating of "Hold" and an average target price of $26.36.

Insider Buying and Selling

In other news, insider Bruce Campbell sold 1,580,331 shares of the company's stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $28.00, for a total transaction of $44,249,268.00. Following the completion of the sale, the insider directly owned 690,028 shares in the company, valued at $19,320,784. This represents a 69.61% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CFO Gunnar Wiedenfels sold 617,580 shares of the stock in a transaction on Tuesday, March 3rd. The shares were sold at an average price of $28.25, for a total value of $17,446,635.00. Following the completion of the sale, the chief financial officer owned 691,570 shares of the company's stock, valued at approximately $19,536,852.50. This represents a 47.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 8,206,827 shares of company stock worth $230,674,025 in the last three months. 1.90% of the stock is currently owned by insiders.

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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