Sachem Head Capital Management LP Has $230.42 Million Position in Warner Bros. Discovery, Inc. $WBD

Key Points

• Sachem Head Capital Management more than doubled its stake in Warner Bros. Discovery in the fourth quarter, raising its holdings by 107.1% to 7.995 million shares worth about $230.4 million.
• Institutional interest in WBD remains strong, with several large funds also adding shares; roughly 59.95% of the stock is owned by institutional investors.
• Analysts are mostly cautious on the stock: the consensus rating is “Hold” with an average price target of $27.04, while the company recently reported a wider-than-expected quarterly loss.

Sachem Head Capital Management LP raised its position in shares of Warner Bros. Discovery, Inc. (NASDAQ:WBD - Free Report) by 107.1% in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 7,995,000 shares of the company's stock after acquiring an additional 4,135,000 shares during the period. Warner Bros. Discovery makes up 5.4% of Sachem Head Capital Management LP's portfolio, making the stock its 9th biggest holding. Sachem Head Capital Management LP owned approximately 0.32% of Warner Bros. Discovery worth $230,416,000 at the end of the most recent reporting period.

A number of other hedge funds also recently bought and sold shares of WBD. Norges Bank bought a new stake in Warner Bros. Discovery during the fourth quarter valued at about $1,123,807,000. Vanguard Group Inc. boosted its holdings in Warner Bros. Discovery by 7.1% during the third quarter. Vanguard Group Inc. now owns 281,214,155 shares of the company's stock valued at $5,492,112,000 after acquiring an additional 18,736,600 shares during the period. Jericho Capital Asset Management L.P. boosted its holdings in 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 valued at $685,413,000 after acquiring an additional 18,291,865 shares during the period. Duquesne Family Office LLC bought a new stake in Warner Bros. Discovery during the second quarter valued at about $74,916,000. Finally, Amundi boosted its holdings in Warner Bros. Discovery by 59.6% during the third quarter. Amundi now owns 15,523,538 shares of the company's stock valued at $296,189,000 after acquiring an additional 5,798,592 shares during the period. 59.95% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of brokerages have recently commented on WBD. Wells Fargo & Company began coverage on shares of Warner Bros. Discovery in a research report on Monday, March 9th. They set an "equal weight" rating and a $31.00 price objective for the company. Deutsche Bank Aktiengesellschaft lowered shares of Warner Bros. Discovery from a "buy" rating to a "hold" rating and upped their price objective for the company from $29.50 to $31.00 in a research report on Friday, February 27th. Benchmark reaffirmed a "hold" rating on shares of Warner Bros. Discovery in a research report on Friday, February 27th. Argus cut their price objective on shares of Warner Bros. Discovery from $32.00 to $31.00 and set a "buy" rating for the company in a research report on Tuesday, March 3rd. Finally, Sanford C. Bernstein upped their price objective on shares of Warner Bros. Discovery from $23.50 to $27.75 and gave the company a "market perform" rating in a research report on Tuesday, February 24th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, fourteen have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Warner Bros. Discovery currently has an average rating of "Hold" and an average price target of $27.04.

Warner Bros. Discovery Stock Performance

NASDAQ WBD opened at $26.98 on Monday. The firm has a market cap of $67.64 billion, a price-to-earnings ratio of -38.54 and a beta of 1.54. The company has a 50 day moving average of $27.12 and a 200-day moving average of $27.56. The company has a current ratio of 0.73, a quick ratio of 0.73 and a debt-to-equity ratio of 0.92. Warner Bros. Discovery, Inc. has a 1-year low of $9.98 and a 1-year high of $30.00.

Warner Bros. Discovery (NASDAQ:WBD - Get Free Report) last posted its quarterly earnings data 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 firm 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%.The business's quarterly revenue was down 1.0% on a year-over-year basis. During the same period in the previous year, the business posted ($0.18) EPS. On average, equities analysts forecast that Warner Bros. Discovery, Inc. will post -1.07 earnings per share for the current fiscal year.

Warner Bros. Discovery News Summary

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

• Positive Sentiment: The DOJ reportedly cleared Paramount Skydance’s acquisition of Warner Bros. Discovery, removing a key antitrust obstacle and improving the chances the deal closes. Justice Department says Paramount's Warner deal wouldn't harm competition
• Positive Sentiment: Reports that the merger was approved helped fuel speculation that Warner Bros. Discovery shareholders could benefit from a takeover premium if the deal advances. Paramount-WBD merger wins approval from DOJ, source says
• Neutral Sentiment: Shareholders rejected David Zaslav’s proposed $165 million pay package for 2025 in a non-binding vote, which adds governance noise but is not likely to change the near-term merger story. Warner Bros. Shareholders Reject David Zaslav's $165 Million Pay Package for 2025

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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