Hedges Asset Management LLC Reduces Position in Warner Bros. Discovery, Inc. $WBD

Key Points

• Hedges Asset Management cut its stake in Warner Bros. Discovery by 86.9% in Q4, leaving just 10,000 shares valued at about $288,000, while roughly 59.95% of the stock remains held by hedge funds and other institutional investors.
• Company insiders have been heavy sellers: the CFO sold 374,323 shares (~$10.5M) and a director sold 35,000 shares (~$962k), with insiders disposing of 8.21 million shares worth $230.7M in the past 90 days.
• WBD missed Q4 EPS (−$0.10 vs. $0.09 est.) and revenue fell 5.7% YoY; analysts hold an average “Hold” rating with a $26.30 target, and the proposed Paramount deal faces heightened regulatory and public scrutiny ahead of Q1 results on May 7.

Hedges Asset Management LLC decreased its holdings in shares of Warner Bros. Discovery, Inc. (NASDAQ:WBD - Free Report) by 86.9% during the fourth quarter, according to the company in its most recent disclosure with the SEC. The fund owned 10,000 shares of the company's stock after selling 66,300 shares during the quarter. Hedges Asset Management LLC's holdings in Warner Bros. Discovery were worth $288,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently modified their holdings of the business. Bayforest Capital Ltd bought a new stake in shares of Warner Bros. Discovery during the 4th quarter worth approximately $69,000. Tokio Marine Asset Management Co. Ltd. boosted its holdings in Warner Bros. Discovery by 304.5% during the 4th quarter. Tokio Marine Asset Management Co. Ltd. now owns 363,983 shares of the company's stock valued at $10,490,000 after acquiring an additional 274,000 shares during the period. Wealth Enhancement Trust Services Inc. bought a new position in Warner Bros. Discovery in the 4th quarter valued at $319,000. Tranquilli Financial Advisor LLC increased its stake in Warner Bros. Discovery by 4.4% in the fourth quarter. Tranquilli Financial Advisor LLC now owns 11,596 shares of the company's stock worth $334,000 after purchasing an additional 493 shares during the period. Finally, MASTERINVEST Kapitalanlage GmbH purchased a new stake in Warner Bros. Discovery in the fourth quarter worth $279,000. 59.95% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the stock. Weiss Ratings raised shares of Warner Bros. Discovery from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, February 23rd. Arete Research reaffirmed a "neutral" rating and issued a $31.25 price target on shares of Warner Bros. Discovery in a research note on Friday, February 27th. Moffett Nathanson upgraded shares of Warner Bros. Discovery from a "hold" rating to a "strong-buy" rating in a report on Sunday, March 8th. Wells Fargo & Company began coverage on shares of Warner Bros. Discovery in a research report on Monday, March 9th. They issued an "equal weight" rating and a $31.00 price objective for the company. Finally, Sanford C. Bernstein upped their target price on shares of Warner Bros. Discovery from $23.50 to $27.75 and gave the stock a "market perform" rating in a research note on Tuesday, February 24th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, fifteen have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $26.30.

Warner Bros. Discovery Price Performance

WBD opened at $27.47 on Monday. Warner Bros. Discovery, Inc. has a 12-month low of $7.75 and a 12-month high of $30.00. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.87. The business's fifty day simple moving average is $27.77 and its 200-day simple moving average is $25.91. The company has a market capitalization of $68.12 billion, a price-to-earnings ratio of 94.73 and a beta of 1.63.

Warner Bros. Discovery (NASDAQ:WBD - Get Free Report) last released its quarterly earnings data on Thursday, February 26th. The company reported ($0.10) earnings per share for the quarter, missing the consensus estimate of $0.09 by ($0.19). Warner Bros. Discovery had a net margin of 1.95% and a return on equity of 1.98%. The firm had revenue of $9.46 billion during the quarter, compared to the consensus estimate of $9.33 billion. During the same quarter in the previous year, the firm earned ($0.20) earnings per share. The business's revenue was down 5.7% compared to the same quarter last year. On average, equities research analysts anticipate that Warner Bros. Discovery, Inc. will post -4.33 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Fazal F. Merchant sold 35,000 shares of Warner Bros. Discovery stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $27.48, for a total transaction of $961,800.00. Following the transaction, 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 sale was disclosed in a filing with the SEC, which is available through this link. Also, CFO Gunnar Wiedenfels sold 374,323 shares of the business's stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $28.05, for a total transaction of $10,499,760.15. Following the completion of the transaction, the chief financial officer directly owned 663,380 shares of the company's stock, valued at $18,607,809. This trade represents a 36.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 8,206,827 shares of company stock worth $230,674,025. 1.80% of the stock is owned by corporate insiders.

Key Warner Bros. Discovery News

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

• Positive Sentiment: HBO Max launched on India’s JioCinema/JioCinema Premium (JioHotstar) distribution, expanding WBD’s streaming footprint in a large international market and creating incremental subscriber and ad revenue opportunity. Warner Bros Discovery’s HBO Max launches in India on JioHotstar
• Positive Sentiment: Paramount Skydance CEO David Ellison vowed to keep at least 30 film releases per year if the proposed $110B deal closes, a public assurance that aims to limit disruption to WBD’s theatrical and studio revenue lines. This could reduce some investor fear about content cuts post-merger. Ellison takes Paramount, Warner Bros case straight to theater owners
• Neutral Sentiment: WBD set its Q1 2026 earnings release for May 7 (pre‑market) — earnings and subscriber metrics will be the next direct catalyst for the stock. Investors should watch streaming ARPU, ad growth, and guidance. Warner Bros. Discovery to Report First Quarter 2026 Results on Thursday, May 7
• Neutral Sentiment: Zacks notes elevated search interest in WBD from retail investors — higher attention can amplify intra‑day moves but doesn’t itself change fundamentals. Investors Heavily Search Warner Bros. Discovery, Inc. (WBD): Here is What You Need to Know
• Negative Sentiment: Regulatory and political scrutiny is intensifying: Senate hearings, calls for testimony, and public criticism from filmmakers and lawmakers raise the risk of remedies, divestitures or deal delays that could reduce deal certainty and create strategic uncertainty for WBD. Cory Booker To Hold “Spotlight” Hearing On Paramount-Warner Bros. Discovery Merger, Invites David Ellison To Testify
• Negative Sentiment: Theater owners and industry voices warn a Paramount‑WBD combination could squeeze exhibitors and restructure release windows — these concerns add another layer of execution and regulatory risk that could pressure WBD’s valuation until the deal path clears. Paramount-WBD Merger? Theater Owners Expect Even Tougher Times
• Negative Sentiment: Multiple reports suggest the proposed acquisition faces a “hostile rewrite” risk and public pushback from talent and lawmakers, increasing the chance of concessions or an extended approval timeline. That uncertainty often weighs on the stock until resolved. Warner Bros. Discovery's blockbuster deal faces a hostile rewrite

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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