Readystate Asset Management LP Boosts Position in Warner Bros. Discovery, Inc. $WBD

Key Points

• Readystate Asset Management increased its WBD stake by 424.7% in the first quarter, purchasing 1.34 million additional shares for a total of 1.66 million shares valued at approximately $45.6 million. Institutional investors collectively own 59.95% of Warner Bros. Discovery.
• WBD shares opened at $25.61, below their 50-day and 200-day moving averages, while the company reported a quarterly loss of $1.17 per share—far worse than the $0.10 consensus estimate—and revenue declined 1% year over year to $8.89 billion.
• The stock carries a consensus “Hold” rating and a $27.04 target price, with merger uncertainty weighing on sentiment as regulatory opposition and delays surrounding the proposed Paramount-WBD transaction persist.

Readystate Asset Management LP increased its position in Warner Bros. Discovery, Inc. (NASDAQ:WBD - Free Report) by 424.7% in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 1,659,671 shares of the company's stock after purchasing an additional 1,343,333 shares during the quarter. Warner Bros. Discovery makes up 2.0% of Readystate Asset Management LP's portfolio, making the stock its 5th biggest position. Readystate Asset Management LP owned 0.07% of Warner Bros. Discovery worth $45,575,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its stake in shares of Warner Bros. Discovery by 0.7% in the 4th quarter. Vanguard Group Inc. now owns 283,180,433 shares of the company's stock valued at $8,161,260,000 after purchasing an additional 1,966,278 shares during the last quarter. Geode Capital Management LLC grew its position in shares of Warner Bros. Discovery by 1.6% during the 4th quarter. Geode Capital Management LLC now owns 66,597,575 shares of the company's stock worth $1,912,634,000 after buying an additional 1,028,346 shares during the period. Norges Bank bought a new stake in shares of Warner Bros. Discovery during the fourth quarter worth approximately $1,123,807,000. Morgan Stanley raised its stake in shares of Warner Bros. Discovery by 4.8% during the fourth quarter. Morgan Stanley now owns 27,462,742 shares of the company's stock worth $791,476,000 after buying an additional 1,254,813 shares during the last quarter. Finally, Northern Trust Corp lifted its holdings in Warner Bros. Discovery by 3.9% in the third quarter. Northern Trust Corp now owns 23,496,725 shares of the company's stock valued at $458,891,000 after buying an additional 876,869 shares during the period. 59.95% of the stock is owned by institutional investors.

Warner Bros. Discovery Stock Performance

Shares of WBD stock opened at $25.61 on Wednesday. The company's fifty day simple moving average is $26.65 and its 200-day simple moving average is $27.34. The company has a quick ratio of 0.73, a current ratio of 0.73 and a debt-to-equity ratio of 0.92. The firm has a market cap of $64.21 billion, a PE ratio of -36.59 and a beta of 1.54. Warner Bros. Discovery, Inc. has a 12 month low of $10.76 and a 12 month 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 analysts' consensus estimates 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 business had revenue of $8.89 billion during the quarter, compared to the consensus estimate of $8.89 billion. During the same period last year, the business posted ($0.18) EPS. The firm's revenue for the quarter was down 1.0% on a year-over-year basis. Equities research analysts expect that Warner Bros. Discovery, Inc. will post -1.07 EPS for the current fiscal year.

Key Warner Bros. Discovery News

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

• Positive Sentiment: Paramount CEO David Ellison said he remains confident that the Paramount–Warner Bros. Discovery transaction will clear legal hurdles and close, reassuring employees and investors despite the delay. Paramount CEO confident on Warner Bros. merger
• Positive Sentiment: A Wall Street Journal opinion article argued that combining Paramount and WBD could help Hollywood compete in a highly concentrated global entertainment market. While not a formal regulatory decision, the view supports the strategic rationale for the deal. The Paramount-Warner Merger Could Save Hollywood
• Neutral Sentiment: WBD sued Amazon over the hiring of an HBO Max executive, calling the recruitment effort an “employee shopping spree” and seeking an order restricting future employee poaching. The case could protect key talent, but litigation may also create costs and management distraction. Warner Bros. Discovery sues Amazon over HBO Max executive hire
• Negative Sentiment: SAG-AFTRA and other entertainment-industry voices oppose the Paramount-WBD deal, while state antitrust litigation and concerns from some WBD executives raise the risk of additional delays or concessions. SAG-AFTRA opposes Paramount-WBD deal
• Negative Sentiment: Seaport Research downgraded WBD to “neutral” from “buy,” citing merger uncertainty and insufficient regulatory clarity. The downgrade contributed to recent selling pressure as investors reassess the deal’s timing and probability. Warner Bros Stock Downgraded After Paramount Merger Delay

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on WBD. Guggenheim reaffirmed a "neutral" rating on shares of Warner Bros. Discovery in a research note on Thursday, May 7th. Weiss Ratings lowered shares of Warner Bros. Discovery from a "hold (c-)" rating to a "sell (d-)" rating in a report on Thursday, May 7th. KeyCorp reissued an "overweight" rating on shares of Warner Bros. Discovery in a research note on Friday, April 24th. Huber Research raised Warner Bros. Discovery from an "underweight" rating to an "overweight" rating in a research note on Monday, June 1st. Finally, Zacks Research raised Warner Bros. Discovery from a "strong sell" rating to a "hold" rating in a research report on Monday, June 1st. One 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 stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $27.04.

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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