Principal Financial Group Inc. Grows Stock Holdings in Warner Bros. Discovery, Inc. $WBD

Key Points

• Principal Financial Group increased its stake in Warner Bros. Discovery by 3.3% in the first quarter, buying 91,082 additional shares and bringing its total to 2.84 million shares valued at about $77.96 million.
• Other institutional investors also added to WBD positions, and hedge funds and other institutions now own 59.95% of the stock, showing continued institutional interest.
• Warner Bros. Discovery’s latest earnings missed expectations, with EPS of -$1.17 versus the -$0.10 estimate, while merger-related legal challenges and mixed analyst ratings keep uncertainty high around the stock.

Principal Financial Group Inc. raised its holdings in shares of Warner Bros. Discovery, Inc. (NASDAQ:WBD - Free Report) by 3.3% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 2,839,154 shares of the company's stock after purchasing an additional 91,082 shares during the quarter. Principal Financial Group Inc. owned 0.11% of Warner Bros. Discovery worth $77,963,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors and hedge funds have also made changes to their positions in the company. Venturi Wealth Management LLC grew its position in Warner Bros. Discovery by 4.5% in the first quarter. Venturi Wealth Management LLC now owns 8,462 shares of the company's stock worth $232,000 after acquiring an additional 367 shares in the last quarter. Krilogy Financial LLC raised its position in Warner Bros. Discovery by 2.6% during the first 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 period. JFS Wealth Advisors LLC lifted its stake in shares of Warner Bros. Discovery by 12.4% in the 4th quarter. JFS Wealth Advisors LLC now owns 3,425 shares of the company's stock valued at $99,000 after purchasing an additional 378 shares during the last quarter. Optas LLC boosted its holdings in shares of Warner Bros. Discovery by 2.7% in the 1st quarter. Optas LLC now owns 15,529 shares of the company's stock worth $426,000 after purchasing an additional 409 shares during the period. Finally, William B. Walkup & Associates Inc. boosted its holdings in shares of Warner Bros. Discovery by 5.6% in the 1st quarter. William B. Walkup & Associates Inc. now owns 7,837 shares of the company's stock worth $215,000 after purchasing an additional 414 shares during the period. 59.95% of the stock is owned by hedge funds and other institutional investors.

Warner Bros. Discovery Stock Performance

Shares of Warner Bros. Discovery stock opened at $27.29 on Friday. The stock's fifty day moving average is $26.85 and its two-hundred day moving average is $27.49. The company has a market capitalization of $68.42 billion, a PE ratio of -38.99 and a beta of 1.54. The company has a quick ratio of 0.73, a current ratio of 0.73 and a debt-to-equity ratio of 0.92. Warner Bros. Discovery, Inc. has a 52 week low of $10.76 and a 52 week high of $30.00.

Warner Bros. Discovery (NASDAQ:WBD - Get Free Report) last released its earnings results on Wednesday, May 6th. The company reported ($1.17) earnings per share for the quarter, missing the consensus estimate of ($0.10) by ($1.07). The business had revenue of $8.89 billion for the quarter, compared to the consensus estimate of $8.89 billion. Warner Bros. Discovery had a negative return on equity of 4.77% and a negative net margin of 4.67%.The firm's revenue for the quarter was down 1.0% compared to the same quarter last year. During the same quarter last year, the business posted ($0.18) earnings per share. As a group, analysts expect that Warner Bros. Discovery, Inc. will post -1.07 earnings per share for the current year.

Analysts Set New Price Targets

WBD has been the topic of several recent research reports. Zacks Research upgraded Warner Bros. Discovery from a "strong sell" rating to a "hold" rating in a report on Monday, June 1st. Weiss Ratings cut shares of Warner Bros. Discovery from a "hold (c-)" rating to a "sell (d-)" rating in a research report on Thursday, May 7th. Guggenheim reissued a "neutral" rating on shares of Warner Bros. Discovery in a research note on Thursday, May 7th. Seaport Research Partners upgraded shares of Warner Bros. Discovery from a "neutral" rating to a "buy" rating and set a $31.00 target price for the company in a report on Monday, June 29th. Finally, UBS Group lifted their price target on shares of Warner Bros. Discovery from $30.00 to $31.00 and gave the stock a "neutral" rating in a research note on Thursday, May 7th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, Warner Bros. Discovery presently has an average rating of "Hold" and a consensus target price of $27.04.

Key Headlines Impacting Warner Bros. Discovery

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

• Positive Sentiment: FCC Chair David Carr said he believes the California-led antitrust challenge to the Paramount-WBD merger is unlikely to succeed, suggesting regulators may not stop the deal. FCC Chair David Carr calls states challenge to Paramount-WBD merger illegitimate
• Neutral Sentiment: Warner Bros. Discovery was highlighted as a trending stock and as potentially undervalued, reflecting continued investor interest beyond the merger headlines. Zacks article on WBD trending stock Warner Bros. Discovery stock has strong returns but still looks undervalued
• Negative Sentiment: Multiple reports say a coalition of 12 state attorneys general has sought a temporary restraining order to block the merger, raising the risk of a delay in closing and added legal costs. Paramount Calls the States’ Antitrust Case Against Warner Bros. Merger One of the Weakest in Modern History Warner Bros. Discovery Faces State Lawsuit Over $110 Billion Merger Pause Paramount, Warner Bros. bosses fear judge will block $110B deal in coming days
• Negative Sentiment: Additional lawsuits from a Paramount shareholder and the WGA accuse the deal of governance and antitrust issues, adding more uncertainty around approval timing and deal completion. Paramount calls shareholder suit recycled allegations WGA sues to block Paramount-Warner Bros. merger

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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