Prosperitas Financial LLC Sells 99,296 Shares of Warner Bros. Discovery, Inc. $WBD

Key Points

• Prosperitas Financial LLC cut its Warner Bros. Discovery stake by 31.4% in the fourth quarter, selling 99,296 shares and leaving it with 217,103 shares valued at about $6.26 million.
• Wall Street sentiment is mixed: while some firms raised or maintained positive ratings, the overall analyst consensus remains “Hold” with an average price target of $26.36.
• Warner Bros. Discovery reported a miss on earnings in its latest quarter, posting -$1.17 EPS versus expectations of -$0.10, even as revenue came in at $8.89 billion and matched estimates.

Prosperitas Financial LLC lessened its stake in shares of Warner Bros. Discovery, Inc. (NASDAQ:WBD - Free Report) by 31.4% during the fourth quarter, according to the company in its most recent disclosure with the SEC. The fund owned 217,103 shares of the company's stock after selling 99,296 shares during the quarter. Warner Bros. Discovery makes up 2.4% of Prosperitas Financial LLC's holdings, making the stock its 15th biggest holding. Prosperitas Financial LLC's holdings in Warner Bros. Discovery were worth $6,257,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the stock. Trek Financial LLC bought a new stake in shares of Warner Bros. Discovery during the fourth quarter worth $8,312,000. Valeo Financial Advisors LLC grew its stake in shares of Warner Bros. Discovery by 13.0% during the fourth quarter. Valeo Financial Advisors LLC now owns 13,235 shares of the company's stock worth $381,000 after buying an additional 1,522 shares during the last quarter. Sentry Investment Management LLC grew its stake in shares of Warner Bros. Discovery by 19.0% during the fourth quarter. Sentry Investment Management LLC now owns 6,465 shares of the company's stock worth $186,000 after buying an additional 1,031 shares during the last quarter. ABN AMRO Bank N.V. bought a new stake in shares of Warner Bros. Discovery during the fourth quarter worth $476,000. Finally, Pure Financial Advisors LLC bought a new stake in shares of Warner Bros. Discovery during the fourth quarter worth $355,000. Institutional investors own 59.95% of the company's stock.

Analysts Set New Price Targets

A number of analysts have weighed in on the stock. Weiss Ratings cut shares of Warner Bros. Discovery from a "hold (c-)" rating to a "sell (d-)" rating in a research note on Thursday. Rothschild & Co Redburn set a $31.00 target price on shares of Warner Bros. Discovery and gave the stock a "neutral" rating in a research note on Tuesday, February 17th. Moffett Nathanson raised shares of Warner Bros. Discovery from a "hold" rating to a "strong-buy" rating in a research note on Sunday, March 8th. Raymond James Financial reaffirmed an "underperform" rating on shares of Warner Bros. Discovery in a research note on Friday, February 27th. Finally, KeyCorp reiterated an "overweight" rating on shares of Warner Bros. Discovery in a report on Friday, April 24th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, thirteen have assigned a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $26.36.

Warner Bros. Discovery Price Performance

Shares of NASDAQ:WBD opened at $27.24 on Tuesday. The firm has a market cap of $68.28 billion, a PE ratio of -38.91 and a beta of 1.57. The firm's fifty day moving average is $27.42 and its 200-day moving average is $26.77. The company has a debt-to-equity ratio of 0.92, a quick ratio of 0.73 and a current ratio of 0.73. Warner Bros. Discovery, Inc. has a 52 week low of $8.82 and a 52 week high of $30.00.

Warner Bros. Discovery (NASDAQ:WBD - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The company reported ($1.17) EPS for the quarter, missing analysts' consensus estimates of ($0.10) by ($1.07). The business had revenue of $8.89 billion for the quarter, compared to analyst estimates of $8.89 billion. Warner Bros. Discovery had a negative return on equity of 4.77% and a negative net margin of 4.67%.Warner Bros. Discovery's revenue for the quarter was down 1.0% on a year-over-year basis. During the same quarter last year, the firm posted ($0.18) EPS. Sell-side analysts predict that Warner Bros. Discovery, Inc. will post -0.15 earnings per share for the current year.

Insider Activity at Warner Bros. Discovery

In related news, CFO Gunnar Wiedenfels sold 617,580 shares of the business's 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 transaction, the chief financial officer owned 691,570 shares in the company, valued at $19,536,852.50. The trade was a 47.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Paul A. Gould sold 600,000 shares of the business's stock in a transaction on Monday, March 16th. The shares were sold at an average price of $27.35, for a total transaction of $16,410,000.00. Following the completion of the transaction, the director owned 244,357 shares in the company, valued at approximately $6,683,163.95. The trade was a 71.06% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 8,206,827 shares of company stock valued at $230,674,025 in the last quarter. Insiders own 1.80% of the company's stock.

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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