Samson Rock Capital LLP Makes New $24.76 Million Investment in Warner Bros. Discovery, Inc. $WBD

Key Points

• Samson Rock Capital bought 800,000 Warner Bros. Discovery shares worth approximately $24.76 million, making WBD its entire reported portfolio.
• Paramount’s acquisition of Warner Bros. Discovery has closed, giving WBD shareholders a liquidity event through cash and/or successor-company securities while creating a larger combined media and streaming business.
• WBD shares rose 0.1% to $30.98, near their 52-week high, but analyst sentiment remains cautious with an average “Hold” rating and a $28.61 price target; the company also reported declining revenue and negative margins.

Samson Rock Capital LLP bought a new stake in shares of Warner Bros. Discovery, Inc. (NASDAQ:WBD - Free Report) during the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm bought 800,000 shares of the company's stock, valued at approximately $24,760,000. Warner Bros. Discovery makes up about 100.0% of Samson Rock Capital LLP's portfolio, making the stock its biggest position.

A number of other institutional investors and hedge funds have also made changes to their positions in WBD. State Street Corp raised its position in shares of Warner Bros. Discovery by 0.7% in the 2nd quarter. State Street Corp now owns 128,364,674 shares of the company's stock worth $3,422,202,000 after acquiring an additional 934,964 shares in the last quarter. HBK Investments L P grew its stake in Warner Bros. Discovery by 15.9% in the second quarter. HBK Investments L P now owns 18,965,932 shares of the company's stock valued at $505,632,000 after purchasing an additional 2,604,732 shares during the last quarter. Bank of America Corp DE grew its stake in Warner Bros. Discovery by 21.9% in the first quarter. Bank of America Corp DE now owns 16,616,949 shares of the company's stock valued at $456,301,000 after purchasing an additional 2,980,900 shares during the last quarter. Amundi raised its holdings in Warner Bros. Discovery by 11.2% in the second quarter. Amundi now owns 16,324,591 shares of the company's stock worth $435,214,000 after purchasing an additional 1,640,916 shares in the last quarter. Finally, Hsbc Holdings PLC raised its holdings in Warner Bros. Discovery by 131.3% in the second quarter. Hsbc Holdings PLC now owns 13,829,848 shares of the company's stock worth $369,800,000 after purchasing an additional 7,851,800 shares in the last quarter. 59.95% of the stock is currently owned by hedge funds and other institutional investors.

Warner Bros. Discovery News Roundup

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

• Positive Sentiment: The transaction provides a definitive liquidity event for WBD shareholders. Depending on the consideration elected or applicable under the merger terms, holders receive cash and/or securities in the successor Skydance company rather than continuing to own standalone Warner Bros. Discovery. What Shareholders Need to Know
• Positive Sentiment: Paramount’s acquisition combines major film, television and streaming assets, potentially creating scale advantages, cost synergies and a broader content portfolio under Skydance. David Ellison will lead the new company as chairman and CEO alongside co-CEO Ynon Kreiz. Paramount Closes Merger to Form Skydance

Warner Bros. Discovery Stock Up 0.1%

Shares of WBD traded up $0.04 during mid-day trading on Tuesday, hitting $30.98. 435,552,453 shares of the company traded hands, compared to its average volume of 50,219,644. Warner Bros. Discovery, Inc. has a 1-year low of $17.08 and a 1-year high of $30.99. The company has a quick ratio of 0.78, a current ratio of 0.78 and a debt-to-equity ratio of 0.90. The company has a market capitalization of $77.79 billion, a PE ratio of -24.40 and a beta of 1.53. The business has a 50 day moving average of $28.39 and a 200 day moving average of $27.45.

Warner Bros. Discovery (NASDAQ:WBD - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported $0.06 EPS for the quarter, topping analysts' consensus estimates of ($0.14) by $0.20. The company had revenue of $8.72 billion during the quarter, compared to analysts' expectations of $9.25 billion. Warner Bros. Discovery had a negative net margin of 8.77% and a negative return on equity of 8.91%. Warner Bros. Discovery's revenue for the quarter was down 11.2% on a year-over-year basis. During the same period last year, the business earned $0.63 EPS. Equities research analysts anticipate that Warner Bros. Discovery, Inc. will post -1.08 EPS for the current year.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the stock. Seaport Research Partners cut shares of Warner Bros. Discovery from a "buy" rating to a "neutral" rating in a report on Monday, July 27th. Zacks Research raised shares of Warner Bros. Discovery from a "strong sell" rating to a "hold" rating in a research report on Tuesday, August 25th. Barclays started coverage on shares of Warner Bros. Discovery in a research note on Thursday, September 17th. They set an "equal weight" rating and a $29.00 price objective for the company. Morgan Stanley raised their target price on shares of Warner Bros. Discovery from $29.00 to $31.00 and gave the company an "equal weight" rating in a research note on Tuesday, September 22nd. Finally, Freedom Capital raised shares of Warner Bros. Discovery from a "hold" rating to a "strong-buy" rating in a report on Monday, August 10th. Two research analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, thirteen have assigned a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and an average price target of $28.61.

Insiders Place Their Bets

In related news, Director Kenneth W. Lowe sold 200,000 shares of the company's stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $28.23, for a total value of $5,646,000.00. Following the transaction, the director directly owned 590,108 shares of the company's stock, valued at $16,658,748.84. This represents a 25.31% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Anton J. Levy sold 340,000 shares of the firm's stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $28.39, for a total value of $9,652,600.00. Following the completion of the transaction, the director owned 618,067 shares of the company's stock, valued at $17,546,922.13. This trade represents a 35.49% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 2,782,149 shares of company stock valued at $77,455,972. Corporate insiders own 0.70% of the company's stock.

Warner Bros. Discovery Company Profile

Warner Bros. Discovery, Inc is a global media and entertainment company that creates, distributes and licenses television, film and digital content. Its portfolio includes Warner Bros. film and television studios, HBO and Max, CNN, Discovery, HGTV, Food Network, TLC, TNT Sports and other well-known entertainment, news, lifestyle and sports brands.

The company serves audiences through streaming platforms, cable and broadcast networks, theatrical releases, consumer products and content licensing.

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