Warner Bros. Discovery, Inc. $WBD Shares Acquired by CIBC Asset Management Inc

Key Points

• CIBC Asset Management Inc increased its Warner Bros. Discovery stake by 40.9% in the fourth quarter, ending with 1.04 million shares valued at about $29.8 million.
• The company’s latest earnings showed a much wider-than-expected loss, with EPS of -$1.17 versus estimates for -$0.10, even as revenue came in at $8.89 billion and matched expectations.
• Deal speculation remains a key catalyst: reports say Paramount Skydance is pursuing EU approval for a possible acquisition, but the transaction still faces global regulatory review that could delay or derail it.

CIBC Asset Management Inc increased its position in shares of Warner Bros. Discovery, Inc. (NASDAQ:WBD - Free Report) by 40.9% during the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,035,360 shares of the company's stock after acquiring an additional 300,421 shares during the period. CIBC Asset Management Inc's holdings in Warner Bros. Discovery were worth $29,839,000 at the end of the most recent quarter.

Several other hedge funds have also recently bought and sold shares of the company. JFS Wealth Advisors LLC lifted its stake in Warner Bros. Discovery by 12.4% during the 4th quarter. JFS Wealth Advisors LLC now owns 3,425 shares of the company's stock worth $99,000 after acquiring an additional 378 shares in the last quarter. Salomon & Ludwin LLC lifted its stake in Warner Bros. Discovery by 20.2% during the 4th quarter. Salomon & Ludwin LLC now owns 2,494 shares of the company's stock worth $71,000 after acquiring an additional 419 shares in the last quarter. CYBER HORNET ETFs LLC lifted its stake in Warner Bros. Discovery by 7.1% during the 4th quarter. CYBER HORNET ETFs LLC now owns 6,396 shares of the company's stock worth $184,000 after acquiring an additional 425 shares in the last quarter. Root Financial Partners LLC lifted its stake in Warner Bros. Discovery by 17.5% during the 4th quarter. Root Financial Partners LLC now owns 2,879 shares of the company's stock worth $83,000 after acquiring an additional 429 shares in the last quarter. Finally, Optas LLC lifted its stake in Warner Bros. Discovery by 3.0% during the 4th quarter. Optas LLC now owns 15,120 shares of the company's stock worth $436,000 after acquiring an additional 435 shares in the last quarter. Institutional investors and hedge funds own 59.95% of the company's stock.

Warner Bros. Discovery Trading Down 0.7%

WBD opened at $27.00 on Thursday. Warner Bros. Discovery, Inc. has a one year low of $9.11 and a one year high of $30.00. The company has a market cap of $67.69 billion, a P/E ratio of -38.57 and a beta of 1.54. The company has a debt-to-equity ratio of 0.92, a quick ratio of 0.73 and a current ratio of 0.73. The business's 50-day simple moving average is $27.20 and its 200-day simple moving average is $27.38.

Warner Bros. Discovery (NASDAQ:WBD - Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The company reported ($1.17) EPS for the quarter, missing analysts' consensus estimates of ($0.10) by ($1.07). Warner Bros. Discovery had a negative net margin of 4.67% and a negative return on equity of 4.77%. The business had revenue of $8.89 billion during the quarter, compared to analysts' expectations of $8.89 billion. During the same quarter in the previous year, the company posted ($0.18) EPS. The company's revenue was down 1.0% compared to the same quarter last year. As a group, equities research analysts expect that Warner Bros. Discovery, Inc. will post -0.93 EPS for the current fiscal year.

Warner Bros. Discovery News Roundup

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

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on the company. Zacks Research raised Warner Bros. Discovery from a "strong sell" rating to a "hold" rating in a research note on Monday. Sanford C. Bernstein increased their target price on Warner Bros. Discovery from $23.50 to $27.75 and gave the stock a "market perform" rating in a research note on Tuesday, February 24th. Moffett Nathanson raised Warner Bros. Discovery from a "hold" rating to a "strong-buy" rating in a research note on Sunday, March 8th. Guggenheim reissued a "neutral" rating on shares of Warner Bros. Discovery in a research note on Thursday, May 7th. Finally, Arete Research reissued a "neutral" rating and set a $31.25 target price on shares of Warner Bros. Discovery in a research note on Friday, February 27th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, fourteen have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, Warner Bros. Discovery has an average rating of "Hold" and a consensus price target of $27.04.

Insider Activity at Warner Bros. Discovery

In other Warner Bros. Discovery news, Director Fazal F. Merchant sold 35,000 shares of the stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $27.48, for a total transaction of $961,800.00. Following the completion of the sale, the director directly owned 95,539 shares of the company's stock, valued at approximately $2,625,411.72. This trade represents a 26.81% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Paul A. Gould sold 600,000 shares of the stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $27.35, for a total value of $16,410,000.00. Following the sale, the director directly owned 244,357 shares of the company's stock, valued at $6,683,163.95. The trade was a 71.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 676,784 shares of company stock valued at $18,534,231 in the last three months. 1.90% of the stock is currently owned by company 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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