Harbor Island Capital LLC Trims Position in Warner Bros. Discovery, Inc. (NASDAQ:WBD)

Key Points

• Harbor Island Capital LLC has reduced its stake in Warner Bros. Discovery by 2.0%, selling 21,860 shares in the first quarter, leaving it with a total of 1,054,000 shares.
• Warner Bros. Discovery's stock recently dropped by 0.5% and the company reported a loss of ($0.18) EPS for the last quarter, missing analysts' expectations.
• Overall, the company has seen a significant decline in revenue, down 9.8% from the previous year, and currently holds a market cap of $31.42 billion.

Harbor Island Capital LLC lowered its stake in shares of Warner Bros. Discovery, Inc. (NASDAQ:WBD - Free Report) by 2.0% in the first quarter, according to its most recent 13F filing with the SEC. The firm owned 1,054,000 shares of the company's stock after selling 21,860 shares during the period. Warner Bros. Discovery makes up approximately 5.6% of Harbor Island Capital LLC's investment portfolio, making the stock its 8th largest position. Harbor Island Capital LLC's holdings in Warner Bros. Discovery were worth $11,309,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently made changes to their positions in WBD. Slate Path Capital LP boosted its position in Warner Bros. Discovery by 36.6% in the 4th quarter. Slate Path Capital LP now owns 23,801,000 shares of the company's stock valued at $251,577,000 after buying an additional 6,381,000 shares during the period. The Manufacturers Life Insurance Company lifted its position in shares of Warner Bros. Discovery by 7.9% during the 4th quarter. The Manufacturers Life Insurance Company now owns 23,608,829 shares of the company's stock worth $249,545,000 after purchasing an additional 1,725,775 shares during the last quarter. Northern Trust Corp lifted its position in shares of Warner Bros. Discovery by 13.5% during the 4th quarter. Northern Trust Corp now owns 22,996,874 shares of the company's stock worth $243,077,000 after purchasing an additional 2,735,196 shares during the last quarter. EdgePoint Investment Group Inc. lifted its position in shares of Warner Bros. Discovery by 0.7% during the 4th quarter. EdgePoint Investment Group Inc. now owns 21,536,172 shares of the company's stock worth $227,637,000 after purchasing an additional 139,453 shares during the last quarter. Finally, FMR LLC lifted its position in shares of Warner Bros. Discovery by 478.5% during the 4th quarter. FMR LLC now owns 14,278,600 shares of the company's stock worth $150,925,000 after purchasing an additional 11,810,191 shares during the last quarter. Hedge funds and other institutional investors own 59.95% of the company's stock.

Warner Bros. Discovery Trading Down 7.3%

Shares of Warner Bros. Discovery stock traded down $0.93 during trading hours on Thursday, hitting $11.86. The company's stock had a trading volume of 57,439,488 shares, compared to its average volume of 78,444,912. Warner Bros. Discovery, Inc. has a 1-year low of $6.64 and a 1-year high of $13.86. The business has a fifty day moving average of $11.50 and a 200 day moving average of $10.32. The company has a market capitalization of $29.11 billion, a PE ratio of -2.70 and a beta of 1.57. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.99.

Warner Bros. Discovery (NASDAQ:WBD - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The company reported $0.63 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.13) by $0.76. Warner Bros. Discovery had a negative net margin of 28.16% and a negative return on equity of 30.56%. The company had revenue of $9.81 billion during the quarter, compared to analyst estimates of $9.73 billion. During the same quarter in the prior year, the business earned ($4.07) earnings per share. The business's quarterly revenue was up 1.0% compared to the same quarter last year. As a group, equities analysts forecast that Warner Bros. Discovery, Inc. will post -4.33 EPS for the current year.

Analysts Set New Price Targets

Several equities research analysts recently commented on WBD shares. Guggenheim reiterated a "buy" rating on shares of Warner Bros. Discovery in a research note on Tuesday, June 10th. Citigroup cut their price target on shares of Warner Bros. Discovery from $15.00 to $14.00 and set a "buy" rating on the stock in a research note on Thursday, May 29th. Huber Research upgraded shares of Warner Bros. Discovery from a "strong sell" rating to a "strong-buy" rating in a research note on Monday, June 9th. Morgan Stanley upped their target price on shares of Warner Bros. Discovery from $10.00 to $13.00 and gave the company an "equal weight" rating in a report on Wednesday. Finally, Needham & Company LLC reaffirmed a "hold" rating on shares of Warner Bros. Discovery in a report on Tuesday, June 10th. Twelve equities research analysts have rated the stock with a hold rating, eleven have issued a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, Warner Bros. Discovery has a consensus rating of "Moderate Buy" and a consensus price target of $12.81.

Warner Bros. Discovery Profile

Warner Bros. Discovery, Inc operates as a media and entertainment company worldwide. It operates through three segments: Studios, Network, and DTC. The Studios segment produces and releases feature films for initial exhibition in theaters; produces and licenses television programs to its networks and third parties and direct-to-consumer services; distributes films and television programs to various third parties and internal television; and offers streaming services and distribution through the home entertainment market, themed experience licensing, and interactive gaming.