Mirae Asset Global Investments Co. Ltd. Grows Stock Position in Warner Bros. Discovery, Inc. $WBD

Key Points

• Mirae Asset Global Investments increased its Warner Bros. Discovery stake by 16.1% in the second quarter, bringing its holdings to 1.55 million shares worth approximately $41.3 million. Institutional investors collectively own 59.95% of WBD.
• WBD reported quarterly EPS of $0.06, beating the consensus estimate of a $0.14 loss, but revenue fell 11.2% year over year to $8.72 billion. Analysts maintain a consensus “Hold” rating with an average price target of $27.69.
• Merger uncertainty and insider selling remain key risks: executives and directors sold millions of dollars in WBD shares, while regulatory and antitrust scrutiny could delay, alter or block the proposed Paramount-WBD transaction.

Mirae Asset Global Investments Co. Ltd. increased its stake in shares of Warner Bros. Discovery, Inc. (NASDAQ:WBD - Free Report) by 16.1% in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 1,549,950 shares of the company's stock after purchasing an additional 215,392 shares during the quarter. Mirae Asset Global Investments Co. Ltd. owned 0.06% of Warner Bros. Discovery worth $41,322,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the company. E Fund Management Hong Kong Co. Ltd. raised its position in Warner Bros. Discovery by 61.6% during the 2nd quarter. E Fund Management Hong Kong Co. Ltd. now owns 13,692 shares of the company's stock worth $365,000 after buying an additional 5,220 shares during the last quarter. Sumitomo Mitsui DS Asset Management Company Ltd lifted its stake in shares of Warner Bros. Discovery by 5.8% in the 2nd quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 320,608 shares of the company's stock worth $8,547,000 after acquiring an additional 17,639 shares during the period. North Growth Management Ltd. boosted its holdings in shares of Warner Bros. Discovery by 0.8% in the second quarter. North Growth Management Ltd. now owns 517,000 shares of the company's stock valued at $13,792,000 after acquiring an additional 4,000 shares in the last quarter. Envestnet Portfolio Solutions Inc. boosted its holdings in shares of Warner Bros. Discovery by 9.3% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 14,447 shares of the company's stock valued at $385,000 after acquiring an additional 1,234 shares in the last quarter. Finally, Gateway Investment Advisers LLC increased its stake in shares of Warner Bros. Discovery by 19.2% during the second quarter. Gateway Investment Advisers LLC now owns 40,821 shares of the company's stock worth $1,088,000 after acquiring an additional 6,579 shares during the period. 59.95% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other news, Director Kenneth W. Lowe sold 120,000 shares of Warner Bros. Discovery stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $26.97, for a total transaction of $3,236,400.00. Following the completion of the sale, the director directly owned 990,108 shares in the company, valued at approximately $26,703,212.76. This trade represents a 10.81% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Gerhard Zeiler sold 591,038 shares of the business's stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $27.05, for a total value of $15,987,577.90. Following the sale, the insider directly owned 537,436 shares in the company, valued at $14,537,643.80. This trade represents a 52.37% decrease in their position. The SEC filing for this sale provides additional information. 0.70% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on WBD. Freedom Capital raised shares of Warner Bros. Discovery from a "hold" rating to a "strong-buy" rating in a report on Monday. UBS Group lifted their price objective on Warner Bros. Discovery from $30.00 to $31.00 and gave the company a "neutral" rating in a report on Thursday, May 7th. Zacks Research cut Warner Bros. Discovery from a "hold" rating to a "strong sell" rating in a research report on Monday, July 27th. Seaport Research Partners downgraded Warner Bros. Discovery from a "buy" rating to a "neutral" rating in a research note on Monday, July 27th. Finally, KeyCorp reissued an "overweight" rating on shares of Warner Bros. Discovery in a report on Friday, April 24th. Two equities research analysts have rated the stock with a Strong Buy rating, six have given a Buy rating, twelve have given a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $27.69.

Key Headlines Impacting Warner Bros. Discovery

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

• Positive Sentiment: Freedom Capital upgraded WBD from “hold” to “strong buy,” adding a bullish catalyst. The firm’s upgrade follows WBD’s recent earnings beat, although the company’s revenue declined year over year. Zacks.com
• Positive Sentiment: Paramount Skydance reportedly said that selling CNN is under consideration as a potential way to resolve California’s antitrust lawsuit against the proposed Paramount-WBD merger. A compromise could improve the deal’s odds of closing, though it would reduce some of its strategic benefits. Paramount says CNN sale is on the table
• Neutral Sentiment: Attorneys for the parties have outlined discovery and other deadlines for the pending antitrust trial, while industry groups including the DGA and IATSE are urging a faster resolution. The process provides a clearer timeline but indicates that merger uncertainty could persist into 2027. Paramount-WBD antitrust trial schedule
• Neutral Sentiment: WBD unveiled new incubator productions for Food Network and discovery+, offering additional content for its television and streaming businesses. The announcement is strategically supportive but is unlikely to materially change near-term valuation. WBD incubator productions
• Negative Sentiment: Large insider sales are weighing on sentiment. CEO David Zaslav reportedly sold approximately $21.7 million of WBD stock, while Director Gerhard Zeiler sold about $16.0 million and Director Kenneth Lowe sold roughly $3.2 million. The filings do not establish the reasons for the sales, but their size may concern investors. David Zaslav stock sale
• Negative Sentiment: Political and regulatory scrutiny remains intense, and Paramount’s threat to leave California highlights the difficulty of reaching a settlement. If the merger is delayed, blocked or materially altered, WBD shareholders could lose a major potential source of value. Political scrutiny of the Paramount-WBD deal

Warner Bros. Discovery Stock Performance

Shares of WBD opened at $27.75 on Friday. The company has a quick ratio of 0.78, a current ratio of 0.78 and a debt-to-equity ratio of 0.90. Warner Bros. Discovery, Inc. has a 52-week low of $11.25 and a 52-week high of $30.00. The company has a 50-day simple moving average of $26.50 and a 200-day simple moving average of $27.16. The company has a market capitalization of $69.57 billion, a PE ratio of -21.85 and a beta of 1.55.

Warner Bros. Discovery (NASDAQ:WBD - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.06 EPS for the quarter, topping analysts' consensus estimates of ($0.14) by $0.20. Warner Bros. Discovery had a negative net margin of 8.77% and a negative return on equity of 8.91%. The firm had revenue of $8.72 billion for the quarter, compared to the consensus estimate of $9.25 billion. During the same quarter in the previous year, the firm earned $0.63 earnings per share. The firm's revenue was down 11.2% on a year-over-year basis. Equities research analysts predict that Warner Bros. Discovery, Inc. will post -1.13 earnings per share for the current fiscal year.

Warner Bros. Discovery Company 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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