Warner Bros. Discovery, Inc. $WBD Stake Increased by Quantitative Investment Management LLC

Key Points

• Quantitative Investment Management LLC boosted its stake in Warner Bros. Discovery by 182% in Q3, buying an additional 135,025 shares to hold 209,217 shares worth about $4.09 million.
• Significant insider selling: CEO David Zaslav sold 4,004,149 shares (~$113.2 million) and insiders have sold 7,571,827 shares (~$213.3 million) in the last 90 days, reducing insider ownership to about 1.90%.
• Recent results and outlook show weakness—Q reported EPS of ($0.10) missed estimates while revenue was $9.46 billion (down 5.7% YoY)—the stock trades near $27.44 with a $68 billion market cap and a consensus analyst rating of Hold (average target $26.30).

Quantitative Investment Management LLC increased its holdings in shares of Warner Bros. Discovery, Inc. (NASDAQ:WBD - Free Report) by 182.0% during the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 209,217 shares of the company's stock after buying an additional 135,025 shares during the quarter. Quantitative Investment Management LLC's holdings in Warner Bros. Discovery were worth $4,086,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors have also recently bought and sold shares of WBD. TriaGen Wealth Management LLC acquired a new position in shares of Warner Bros. Discovery in the 3rd quarter valued at about $443,000. Charles Schwab Investment Management Inc. lifted its position in shares of Warner Bros. Discovery by 7.4% in the second quarter. Charles Schwab Investment Management Inc. now owns 19,463,234 shares of the company's stock worth $223,049,000 after purchasing an additional 1,333,005 shares in the last quarter. Swedbank AB boosted its holdings in shares of Warner Bros. Discovery by 3.7% during the third quarter. Swedbank AB now owns 1,065,445 shares of the company's stock worth $20,808,000 after purchasing an additional 37,986 shares during the period. Universal Beteiligungs und Servicegesellschaft mbH grew its position in Warner Bros. Discovery by 1.0% during the second quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 1,572,301 shares of the company's stock valued at $18,019,000 after purchasing an additional 16,006 shares in the last quarter. Finally, Geode Capital Management LLC grew its position in Warner Bros. Discovery by 0.9% during the second quarter. Geode Capital Management LLC now owns 60,091,463 shares of the company's stock valued at $685,798,000 after purchasing an additional 551,548 shares in the last quarter. 59.95% of the stock is owned by institutional investors and hedge funds.

Warner Bros. Discovery Stock Performance

WBD opened at $27.44 on Friday. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.06 and a current ratio of 1.06. The company has a market cap of $68.00 billion, a PE ratio of 94.63 and a beta of 1.60. The stock has a 50-day moving average of $28.18 and a 200-day moving average of $23.67. Warner Bros. Discovery, Inc. has a 52-week low of $7.52 and a 52-week high of $30.00.

Warner Bros. Discovery (NASDAQ:WBD - Get Free Report) last issued its quarterly earnings data 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 company had revenue of $9.46 billion during the quarter, compared to the consensus estimate of $9.33 billion. During the same period in the previous year, the business posted ($0.20) earnings per share. The firm's revenue was down 5.7% on a year-over-year basis. As a group, equities research analysts forecast that Warner Bros. Discovery, Inc. will post -4.33 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider Gerhard Zeiler sold 600,000 shares of Warner Bros. Discovery stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $28.02, for a total value of $16,812,000.00. Following the transaction, the insider owned 672,649 shares of the company's stock, valued at $18,847,624.98. This trade represents a 47.15% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO David Zaslav sold 4,004,149 shares of the business's stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $28.26, for a total transaction of $113,157,250.74. Following the completion of the sale, the chief executive officer owned 7,200,627 shares of the company's stock, valued at $203,489,719.02. The trade was a 35.74% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 7,571,827 shares of company stock valued at $213,302,225. 1.90% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the stock. Morgan Stanley set a $29.00 price objective on shares of Warner Bros. Discovery in a research note on Thursday, December 18th. Huber Research cut shares of Warner Bros. Discovery from a "strong-buy" rating to a "strong sell" rating in a report on Friday, February 27th. Guggenheim downgraded shares of Warner Bros. Discovery from a "buy" rating to a "neutral" rating and upped their price target for the stock from $25.00 to $30.00 in a research note on Wednesday, January 14th. Rothschild & Co Redburn set a $31.00 price objective on Warner Bros. Discovery and gave the stock a "neutral" rating in a report on Tuesday, February 17th. Finally, Deutsche Bank Aktiengesellschaft cut Warner Bros. Discovery from a "buy" rating to a "hold" rating and lifted their price objective for the company from $29.50 to $31.00 in a research report on Friday, February 27th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, fifteen have issued a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, Warner Bros. Discovery currently has a consensus rating of "Hold" and an average target price of $26.30.

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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