Three Seasons Wealth LLC Sells 101,129 Shares of Warner Bros. Discovery, Inc. $WBD

Key Points

• Three Seasons Wealth LLC cut its Warner Bros. Discovery stake by 80.7% in the second quarter, selling 101,129 shares and retaining 24,205 shares valued at approximately $645,000.
• Warner Bros. Discovery reported quarterly EPS of $0.06, beating estimates of a $0.14 loss, but revenue fell 11.2% year over year to $8.72 billion and missed expectations. Shares opened at $28.25, near the analyst consensus price target of $27.69.
• Insider selling and merger uncertainty weigh on sentiment: insiders sold nearly 2 million shares worth about $54 million over the past three months, while a reported state antitrust lawsuit threatens Paramount’s proposed acquisition of WBD. Analysts maintain a consensus “Hold” rating.

Three Seasons Wealth LLC reduced its position in Warner Bros. Discovery, Inc. (NASDAQ:WBD - Free Report) by 80.7% during the second quarter, according to its most recent 13F filing with the SEC. The firm owned 24,205 shares of the company's stock after selling 101,129 shares during the period. Three Seasons Wealth LLC's holdings in Warner Bros. Discovery were worth $645,000 as of its most recent SEC filing.

Other large investors have also recently modified their holdings of the company. Harbor Investment Advisory LLC increased its holdings in Warner Bros. Discovery by 111.2% during the 2nd quarter. Harbor Investment Advisory LLC now owns 942 shares of the company's stock worth $25,000 after acquiring an additional 496 shares during the period. Field & Main Bank purchased a new position in shares of Warner Bros. Discovery in the 2nd quarter worth about $26,000. Swiss RE Ltd. bought a new position in Warner Bros. Discovery during the fourth quarter valued at approximately $26,000. Elevation Wealth Partners LLC raised its position in Warner Bros. Discovery by 64.3% in the 2nd quarter. Elevation Wealth Partners LLC now owns 1,009 shares of the company's stock worth $27,000 after purchasing an additional 395 shares during the period. Finally, Archer Investment Corp bought a new stake in shares of Warner Bros. Discovery in the 2nd quarter valued at about $27,000. Hedge funds and other institutional investors own 59.95% of the company's stock.

Warner Bros. Discovery Trading Down 0.4%

NASDAQ:WBD opened at $28.25 on Friday. Warner Bros. Discovery, Inc. has a one year low of $11.77 and a one year high of $30.00. The company has a debt-to-equity ratio of 0.90, a current ratio of 0.78 and a quick ratio of 0.78. The company's 50-day simple moving average is $27.09 and its 200 day simple moving average is $27.26. The firm has a market capitalization of $70.93 billion, a P/E ratio of -22.24 and a beta of 1.57.

Warner Bros. Discovery (NASDAQ:WBD - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.06 earnings per share for the quarter, topping analysts' consensus estimates of ($0.14) by $0.20. Warner Bros. Discovery had a negative net margin of 8.77% and a negative return on equity of 8.91%. The business had revenue of $8.72 billion for the quarter, compared to analysts' expectations of $9.25 billion. During the same quarter in the prior year, the company earned $0.63 earnings per share. The business's revenue was down 11.2% compared to the same quarter last year. As a group, analysts forecast that Warner Bros. Discovery, Inc. will post -1.11 EPS for the current fiscal year.

Key Stories Impacting Warner Bros. Discovery

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

• Positive Sentiment: Warner Bros. Discovery reached a deal with Turkey’s Doğuş Media Group to bring Turkish scripted programming to HBO Max. The agreement could improve the service’s international content offering and subscriber appeal. WBD partners with Doğuş to bring Turkish drama to HBO Max
• Positive Sentiment: WBD launched a shoppable streaming experience in Poland, creating a potential new advertising and commerce revenue channel. The financial impact is likely limited initially but supports its broader streaming monetization strategy. WBD launches shoppable streaming experience in Poland
• Neutral Sentiment: WBD will discontinue the standalone discovery+ app in India, apparently consolidating content within a broader HBO Max strategy. The move could reduce operating complexity, although it may risk disrupting some existing customers. WBD to discontinue standalone discovery+ app in India
• Neutral Sentiment: Analysts maintain a consensus “Hold” rating on WBD, indicating limited conviction that the stock’s recent gains will continue without clearer improvement in profitability and its streaming outlook. WBD given consensus Hold rating
• Negative Sentiment: A director sold 200,000 WBD shares for approximately $5.67 million, reducing his direct holdings by 20.2%. While the sale may be personal or portfolio-related, the sizable insider transaction can weigh on sentiment. SEC insider-trading filing
• Negative Sentiment: A reported state antitrust lawsuit threatens Paramount’s proposed Warner Bros. Discovery deal, raising uncertainty over regulatory approval, timing and the potential value of the transaction. State antitrust lawsuit threatens Paramount’s Warner Bros. deal
• Negative Sentiment: Higher-rate expectations are pressuring higher-valuation media and streaming stocks. Although WBD has held relatively steady versus peers, the sector-wide repricing is limiting near-term upside. Rate repricing pressures streaming stocks

Insider Buying and Selling

In related news, Director Kenneth W. Lowe sold 200,000 shares of the stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $28.35, for a total transaction of $5,670,000.00. Following the sale, the director directly owned 790,108 shares of the company's stock, valued at approximately $22,399,561.80. This represents a 20.20% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Gerhard Zeiler sold 591,038 shares of Warner Bros. Discovery stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $27.05, for a total transaction of $15,987,577.90. Following the completion of the transaction, the insider directly owned 537,436 shares of the company's stock, valued at $14,537,643.80. This trade represents a 52.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 1,950,749 shares of company stock valued at $53,999,633. Insiders own 0.70% of the company's stock.

Analysts Set New Price Targets

A number of equities analysts have issued reports on WBD shares. Weiss Ratings upgraded shares of Warner Bros. Discovery from a "sell (d-)" rating to a "sell (d+)" rating in a research report on Tuesday, August 18th. Freedom Capital raised Warner Bros. Discovery from a "hold" rating to a "strong-buy" rating in a research note on Monday, August 10th. Seaport Research Partners downgraded shares of Warner Bros. Discovery from a "buy" rating to a "neutral" rating in a research report on Monday, July 27th. Huber Research raised shares of Warner Bros. Discovery from an "underweight" rating to an "overweight" rating in a research report on Monday, June 1st. Finally, Zacks Research upgraded shares of Warner Bros. Discovery from a "strong sell" rating to a "hold" rating in a research report on Tuesday, August 25th. Two research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating, thirteen have issued a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $27.69.

Warner Bros. Discovery 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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