Tremblant Capital Group Cuts Stock Holdings in Warner Bros. Discovery, Inc. $WBD

Key Points

• Tremblant Capital Group trimmed its position in Warner Bros. Discovery by 10.2% in Q3, selling 343,762 shares and now holding 3,036,282 shares (~$59.3M), which remains its largest position (about 6.1% of the firm's holdings).
• Heavy insider selling — CEO David Zaslav sold 4,004,149 shares (~$113.2M) and Priya Aiyar sold 223,512 shares (~$6.3M); insiders have sold a total of 7,571,827 shares worth ~$213.3M in the past 90 days, leaving insiders with about 1.9% ownership.
• Analysts maintain a consensus "Hold" rating with a $26.30 average target; WBD recently reported a quarterly EPS miss (loss of $0.10 vs. $0.09 expected) while revenue of $9.46B beat estimates but was down 5.7% year-over-year.

Tremblant Capital Group lessened its position in Warner Bros. Discovery, Inc. (NASDAQ:WBD - Free Report) by 10.2% in the third quarter, according to its most recent disclosure with the SEC. The firm owned 3,036,282 shares of the company's stock after selling 343,762 shares during the period. Warner Bros. Discovery makes up about 6.1% of Tremblant Capital Group's holdings, making the stock its largest position. Tremblant Capital Group owned 0.12% of Warner Bros. Discovery worth $59,299,000 at the end of the most recent reporting period.

A number of other institutional investors also recently modified their holdings of WBD. Concord Wealth Partners lifted its holdings in shares of Warner Bros. Discovery by 49.9% in the 3rd quarter. Concord Wealth Partners now owns 1,321 shares of the company's stock worth $26,000 after purchasing an additional 440 shares in the last quarter. Physician Wealth Advisors Inc. grew its position in Warner Bros. Discovery by 152.1% in the 3rd quarter. Physician Wealth Advisors Inc. now owns 1,404 shares of the company's stock valued at $27,000 after purchasing an additional 847 shares during the period. Financial Gravity Companies Inc. bought a new stake in Warner Bros. Discovery during the 2nd quarter valued at $29,000. Grove Bank & Trust raised its holdings in Warner Bros. Discovery by 66.5% during the third quarter. Grove Bank & Trust now owns 1,690 shares of the company's stock worth $33,000 after buying an additional 675 shares during the last quarter. Finally, Crews Bank & Trust raised its holdings in Warner Bros. Discovery by 1,242.2% during the third quarter. Crews Bank & Trust now owns 1,718 shares of the company's stock worth $34,000 after buying an additional 1,590 shares during the last quarter. 59.95% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on WBD. TD Cowen lifted their price objective on shares of Warner Bros. Discovery from $22.00 to $26.00 and gave the company a "hold" rating in a report on Friday, February 27th. Sanford C. Bernstein upped their target price on shares of Warner Bros. Discovery from $23.50 to $27.75 and gave the stock a "market perform" rating in a report on Tuesday, February 24th. Raymond James Financial reaffirmed an "underperform" rating on shares of Warner Bros. Discovery in a research report on Friday, February 27th. Rothschild & Co Redburn set a $31.00 price target on Warner Bros. Discovery and gave the company a "neutral" rating in a research note on Tuesday, February 17th. Finally, Weiss Ratings raised Warner Bros. Discovery from a "sell (d+)" rating to a "hold (c-)" rating in a report on Monday, February 23rd. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, fifteen have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $26.30.

Warner Bros. Discovery Stock Performance

NASDAQ WBD opened at $27.14 on Friday. The company has a fifty day moving average price of $28.15 and a 200-day moving average price of $23.77. The firm has a market cap of $67.25 billion, a price-to-earnings ratio of 93.59 and a beta of 1.60. The company has a debt-to-equity ratio of 0.87, a current ratio of 1.06 and a quick ratio of 1.06. Warner Bros. Discovery, Inc. has a 1 year low of $7.52 and a 1 year high of $30.00.

Warner Bros. Discovery (NASDAQ:WBD - Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The company reported ($0.10) earnings per share for the quarter, missing analysts' consensus estimates of $0.09 by ($0.19). Warner Bros. Discovery had a net margin of 1.95% and a return on equity of 1.98%. The firm had revenue of $9.46 billion for the quarter, compared to the consensus estimate of $9.33 billion. During the same period in the previous year, the business earned ($0.20) earnings per share. The firm's revenue for the quarter was down 5.7% on a year-over-year basis. As a group, equities research analysts predict that Warner Bros. Discovery, Inc. will post -4.33 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Priya Aiyar sold 223,512 shares of the business's stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $28.24, for a total value of $6,311,978.88. Following the transaction, the insider owned 919,252 shares in the company, valued at $25,959,676.48. The trade was a 19.56% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO David Zaslav sold 4,004,149 shares of the company's stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $28.26, for a total value of $113,157,250.74. Following the completion of the transaction, the chief executive officer directly owned 7,200,627 shares of the company's stock, valued at approximately $203,489,719.02. This represents a 35.74% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 7,571,827 shares of company stock worth $213,302,225 in the last ninety days. 1.90% of the stock is owned by corporate insiders.

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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