Sound Shore Management Inc. CT Sells 3,350,243 Shares of Warner Bros. Discovery, Inc. $WBD

Key Points

• Sound Shore Management sharply reduced its Warner Bros. Discovery stake, cutting holdings by 77.2% in the fourth quarter and selling more than 3.35 million shares.
• Several analysts remain cautious on WBD overall: UBS nudged its price target up to $31, but the stock’s consensus rating is still “Hold” with an average target of $27.04.
• Warner Bros. Discovery continues to be shaped by merger speculation involving Paramount Skydance, but the deal still faces global regulatory review, while the company also reported a recent quarterly EPS miss.

Sound Shore Management Inc. CT cut its holdings in Warner Bros. Discovery, Inc. (NASDAQ:WBD - Free Report) by 77.2% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 990,615 shares of the company's stock after selling 3,350,243 shares during the quarter. Sound Shore Management Inc. CT's holdings in Warner Bros. Discovery were worth $28,550,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other large investors also recently modified their holdings of the company. Private Advisory Group LLC purchased a new stake in Warner Bros. Discovery in the fourth quarter worth about $3,438,000. Hauser Brothers GmbH boosted its holdings in Warner Bros. Discovery by 19.8% in the third quarter. Hauser Brothers GmbH now owns 2,877,000 shares of the company's stock worth $56,188,000 after acquiring an additional 476,000 shares in the last quarter. US Bancorp DE grew its holdings in shares of Warner Bros. Discovery by 32.7% during the third quarter. US Bancorp DE now owns 175,293 shares of the company's stock valued at $3,423,000 after buying an additional 43,240 shares during the last quarter. Triad Investment Management bought a new position in Warner Bros. Discovery in the 4th quarter valued at approximately $9,383,000. Finally, Mn Services Vermogensbeheer B.V. lifted its holdings in shares of Warner Bros. Discovery by 4.3% during the fourth quarter. Mn Services Vermogensbeheer B.V. now owns 916,705 shares of the company's stock valued at $26,419,000 after purchasing an additional 38,105 shares in the last quarter. 59.95% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

A number of analysts recently commented on WBD shares. UBS Group upped their price objective on Warner Bros. Discovery from $30.00 to $31.00 and gave the company a "neutral" rating in a research report on Thursday, May 7th. Zacks Research raised shares of Warner Bros. Discovery from a "strong sell" rating to a "hold" rating in a research note on Monday. Guggenheim reissued a "neutral" rating on shares of Warner Bros. Discovery in a research note on Thursday, May 7th. 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 report on Tuesday, February 17th. Finally, Raymond James Financial restated an "underperform" rating on shares of Warner Bros. Discovery in a research report on Friday, February 27th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, fourteen have given a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $27.04.

Key Headlines Impacting Warner Bros. Discovery

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

• Positive Sentiment: Warner Bros. Discovery was upgraded by Zacks Research from “strong sell” to “hold”, signaling that bearish sentiment is easing and giving investors a less negative view of the stock. Tickerreport.com
• Positive Sentiment: Multiple reports said Paramount Skydance is actively seeking EU approval for its acquisition of Warner Bros. Discovery, keeping the deal narrative alive and supporting speculation that WBD could command a strategic premium. MSN
• Positive Sentiment: The European Commission is reportedly aiming to finish its merger review in July, which could move the deal process forward and reduce uncertainty around timing. MSN
• Neutral Sentiment: Commentary arguing that media stocks under $30 remain a contrarian value idea adds a supportive valuation narrative, but it is more of a market opinion than a company-specific catalyst. 247WallSt
• Neutral Sentiment: Reports of executives pushing back against merger critics mainly underscore that regulatory and public-relations controversy around the deal is still ongoing, without changing fundamentals by themselves. TheWrap
• Negative Sentiment: The merger still needs approval from regulators around the world, so any setback or delay could pressure the stock if investors begin to doubt the deal’s likelihood or timeline. Business Insider

Insider Transactions at Warner Bros. Discovery

In related news, insider Bruce Campbell sold 41,784 shares of the company's stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $27.82, for a total value of $1,162,430.88. Following the completion of the sale, the insider directly owned 604,666 shares of the company's stock, valued at $16,821,808.12. This represents a 6.46% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Fazal F. Merchant sold 35,000 shares of the stock in a transaction on Monday, March 16th. The shares were sold at an average price of $27.48, for a total value of $961,800.00. Following the sale, the director directly owned 95,539 shares in the company, valued at $2,625,411.72. This trade represents a 26.81% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 676,784 shares of company stock worth $18,534,231. Insiders own 1.90% of the company's stock.

Warner Bros. Discovery Trading Down 0.7%

Shares of WBD opened at $27.00 on Thursday. The company's fifty day simple moving average is $27.20 and its 200-day simple moving average is $27.38. The company has a current ratio of 0.73, a quick ratio of 0.73 and a debt-to-equity ratio of 0.92. The company has a market cap of $67.69 billion, a P/E ratio of -38.57 and a beta of 1.54. Warner Bros. Discovery, Inc. has a twelve month low of $9.11 and a twelve month high of $30.00.

Warner Bros. Discovery (NASDAQ:WBD - Get Free Report) last posted 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 company had revenue of $8.89 billion during the quarter, compared to the consensus estimate 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 company's revenue for the quarter was down 1.0% on a year-over-year basis. During the same quarter in the previous year, the company posted ($0.18) earnings per share. As a group, analysts expect that Warner Bros. Discovery, Inc. will post -0.93 EPS for the current year.

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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