Prudential PLC Increases Stock Position in Warner Bros. Discovery, Inc. $WBD

Key Points

• Prudential PLC boosted its Warner Bros. Discovery stake by 121.7% in the fourth quarter, ending with 176,284 shares worth about $5.1 million.
• Institutional investors continue to dominate the stock, with hedge funds and other institutions owning about 59.95% of Warner Bros. Discovery shares. Several large firms, including Vanguard and Geode, also increased their positions.
• Warner Bros. Discovery shares were down 2.8% and the company reported a larger-than-expected quarterly loss of $1.17 per share, even as revenue matched forecasts at $8.89 billion.

Prudential PLC lifted its holdings in shares of Warner Bros. Discovery, Inc. (NASDAQ:WBD - Free Report) by 121.7% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 176,284 shares of the company's stock after acquiring an additional 96,779 shares during the period. Prudential PLC's holdings in Warner Bros. Discovery were worth $5,081,000 at the end of the most recent reporting period.

A number of other hedge funds have also modified their holdings of WBD. Vanguard Group Inc. lifted its holdings in shares of Warner Bros. Discovery by 0.7% during the fourth quarter. Vanguard Group Inc. now owns 283,180,433 shares of the company's stock worth $8,161,260,000 after purchasing an additional 1,966,278 shares during the period. Geode Capital Management LLC lifted its holdings in shares of Warner Bros. Discovery by 1.6% during the fourth quarter. Geode Capital Management LLC now owns 66,597,575 shares of the company's stock worth $1,912,634,000 after purchasing an additional 1,028,346 shares during the period. Norges Bank acquired a new stake in shares of Warner Bros. Discovery during the fourth quarter worth $1,123,807,000. Jericho Capital Asset Management L.P. lifted its holdings in shares of Warner Bros. Discovery by 108.9% during the third quarter. Jericho Capital Asset Management L.P. now owns 35,095,390 shares of the company's stock worth $685,413,000 after purchasing an additional 18,291,865 shares during the period. Finally, Northern Trust Corp lifted its holdings in shares of Warner Bros. Discovery by 3.9% during the third quarter. Northern Trust Corp now owns 23,496,725 shares of the company's stock worth $458,891,000 after purchasing an additional 876,869 shares during the period. 59.95% of the stock is currently owned by hedge funds and other institutional investors.

Warner Bros. Discovery Trading Down 2.8%

NASDAQ:WBD opened at $26.24 on Friday. The company has a market capitalization of $65.79 billion, a PE ratio of -37.49 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 $9.11 and a 52-week high of $30.00. The stock has a fifty day simple moving average of $27.18 and a 200-day simple moving average of $27.40.

Warner Bros. Discovery (NASDAQ:WBD - Get Free Report) last announced 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). Warner Bros. Discovery had a negative net margin of 4.67% and a negative return on equity of 4.77%. The firm had revenue of $8.89 billion during the quarter, compared to analyst estimates of $8.89 billion. During the same period in the previous year, the firm posted ($0.18) EPS. The company's revenue for the quarter was down 1.0% compared to the same quarter last year. On average, equities research analysts expect that Warner Bros. Discovery, Inc. will post -0.93 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on the company. KeyCorp reissued an "overweight" rating on shares of Warner Bros. Discovery in a report on Friday, April 24th. TD Cowen increased their target price on shares of Warner Bros. Discovery from $22.00 to $26.00 and gave the company a "hold" rating in a report on Friday, February 27th. UBS Group raised their price objective on Warner Bros. Discovery from $30.00 to $31.00 and gave the company a "neutral" rating in a research note on Thursday, May 7th. Argus dropped their price objective on Warner Bros. Discovery from $32.00 to $31.00 and set a "buy" rating for the company in a research note on Tuesday, March 3rd. Finally, Wells Fargo & Company initiated coverage on Warner Bros. Discovery in a research note on Monday, March 9th. They issued an "equal weight" rating and a $31.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, fourteen have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $27.04.

More Warner Bros. Discovery News

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

• Positive Sentiment: Warner Bros. Discovery signed a World Series of Poker broadcast deal, which adds another content partnership and could support its media and sports programming strategy. WBD signs World Series of Poker broadcast deal
• Neutral Sentiment: Analysts noted WBD has been little changed since its last earnings report, with investors still waiting for a clearer operational turnaround. Warner Bros. Discovery (WBD) Down 0.4% Since Last Earnings Report: Can It Rebound?
• Neutral Sentiment: Paramount is seeking to dismiss a lawsuit aimed at blocking the Warner Bros. Discovery transaction, while other reports say states are preparing their own legal challenge, keeping the deal in limbo. U.S. states are preparing a lawsuit to block Paramount's acquisition of Warner Bros
• Negative Sentiment: State attorneys general planning a lawsuit to block the Paramount Skydance acquisition of Warner Bros. Discovery is the biggest near-term concern, since it raises the odds of delay or even failure of the deal. Stock Market Today, June 5: Warner Bros. Discovery Falls on Reports of State Antitrust Challenge to Paramount Deal
• Negative Sentiment: Political scrutiny is increasing, with Senator Elizabeth Warren calling for a foreign-ownership review of the Paramount-WBD deal, adding another potential hurdle. Elizabeth Warren Calls For Foreign Ownership Review Of Paramount-WBD

Insider Activity at Warner Bros. Discovery

In related news, Director Fazal F. Merchant sold 35,000 shares of the business's stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $27.48, for a total value of $961,800.00. Following the completion of the transaction, the director owned 95,539 shares of the company's stock, valued at approximately $2,625,411.72. The trade was a 26.81% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Paul A. Gould sold 600,000 shares of the business's stock in a transaction dated 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 directly owned 244,357 shares of the company's stock, valued at $6,683,163.95. The trade was a 71.06% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 676,784 shares of company stock valued at $18,534,231. 1.90% of the stock is owned by insiders.

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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