Warner Bros. Discovery, Inc. $WBD Shares Acquired by Empyrean Capital Partners LP

Key Points

• Empyrean Capital Partners increased its Warner Bros. Discovery stake by 29.1% in the first quarter, adding 583,000 shares to hold 2.583 million shares valued at approximately $70.9 million.
• Institutional investors and hedge funds own 59.95% of WBD shares. Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $27.04.
• WBD shares opened at $25.28, below their 50-day and 200-day moving averages, after the company reported a first-quarter EPS loss of $1.17—far worse than the expected $0.10 loss—while revenue declined 1% year over year to $8.89 billion.

Empyrean Capital Partners LP boosted its holdings in Warner Bros. Discovery, Inc. (NASDAQ:WBD - Free Report) by 29.1% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 2,583,000 shares of the company's stock after purchasing an additional 583,000 shares during the period. Warner Bros. Discovery comprises about 2.3% of Empyrean Capital Partners LP's portfolio, making the stock its 9th largest holding. Empyrean Capital Partners LP owned 0.10% of Warner Bros. Discovery worth $70,929,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in the business. Swiss RE Ltd. acquired a new stake in shares of Warner Bros. Discovery in the fourth quarter valued at about $26,000. Fideuram Asset Management Ireland dac bought a new stake in Warner Bros. Discovery during the fourth quarter worth about $29,000. MV Capital Management Inc. acquired a new position in Warner Bros. Discovery during the fourth quarter valued at approximately $30,000. JPL Wealth Management LLC acquired a new position in Warner Bros. Discovery during the third quarter valued at approximately $33,000. Finally, Rakuten Securities Inc. grew its stake in Warner Bros. Discovery by 81.5% in the fourth quarter. Rakuten Securities Inc. now owns 1,160 shares of the company's stock valued at $33,000 after purchasing an additional 521 shares in the last quarter. 59.95% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the company. KeyCorp reaffirmed an "overweight" rating on shares of Warner Bros. Discovery in a research report on Friday, April 24th. Seaport Research Partners downgraded Warner Bros. Discovery from a "buy" rating to a "neutral" rating in a report on Monday. Guggenheim reissued a "neutral" rating on shares of Warner Bros. Discovery in a research note on Thursday, May 7th. Zacks Research upgraded shares of Warner Bros. Discovery from a "strong sell" rating to a "hold" rating in a report on Monday, June 1st. Finally, Weiss Ratings lowered shares of Warner Bros. Discovery from a "hold (c-)" rating to a "sell (d-)" rating in a research report on Thursday, May 7th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, thirteen have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, Warner Bros. Discovery presently has a consensus rating of "Hold" and a consensus price target of $27.04.

Warner Bros. Discovery Price Performance

Shares of NASDAQ WBD opened at $25.28 on Tuesday. The business's 50 day moving average price is $26.68 and its two-hundred day moving average price is $27.36. The company has a market cap of $63.38 billion, a PE ratio of -36.11 and a beta of 1.54. The company has a quick ratio of 0.73, a current ratio of 0.73 and a debt-to-equity ratio of 0.92. Warner Bros. Discovery, Inc. has a twelve month low of $10.76 and a twelve month high of $30.00.

Warner Bros. Discovery (NASDAQ:WBD - Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The company reported ($1.17) earnings per share (EPS) for the quarter, missing the consensus estimate 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 the consensus estimate of $8.89 billion. During the same quarter in the prior year, the company earned ($0.18) EPS. Warner Bros. Discovery's quarterly revenue was down 1.0% on a year-over-year basis. On average, analysts predict that Warner Bros. Discovery, Inc. will post -1.07 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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