Warner Bros. Discovery, Inc. (NASDAQ:WBD) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Warner Bros. Discovery has a consensus rating of "Moderate Buy" from 24 analysts, with an average 1-year target price of $12.41.
• The company's recent quarterly earnings showed a loss of ($0.18) per share, missing expectations, and a revenue of $8.98 billion, down 9.8% year-over-year.
• Several large investors have significantly increased their holdings in Warner Bros. Discovery, with hedge funds controlling 59.95% of the stock.

Shares of Warner Bros. Discovery, Inc. (NASDAQ:WBD - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the twenty-four ratings firms that are covering the firm, Marketbeat reports. Twelve analysts have rated the stock with a hold rating, eleven have assigned a buy rating and one has assigned a strong buy rating to the company. The average 1 year price objective among brokerages that have updated their coverage on the stock in the last year is $12.66.

A number of research analysts recently issued reports on WBD shares. KeyCorp boosted their price target on Warner Bros. Discovery from $13.00 to $18.00 and gave the company an "overweight" rating in a report on Wednesday. Argus raised shares of Warner Bros. Discovery to a "hold" rating in a research report on Tuesday, May 27th. Huber Research upgraded Warner Bros. Discovery from a "strong sell" rating to a "strong-buy" rating in a research note on Monday, June 9th. Benchmark reissued a "buy" rating and set a $18.00 price target on shares of Warner Bros. Discovery in a research report on Monday, July 14th. Finally, Morgan Stanley dropped their price objective on Warner Bros. Discovery from $12.00 to $10.00 and set an "equal weight" rating on the stock in a report on Tuesday, May 6th.

Warner Bros. Discovery Stock Up 1.1%

NASDAQ WBD traded up $0.14 during trading hours on Wednesday, hitting $13.26. The company had a trading volume of 52,301,538 shares, compared to its average volume of 73,935,952. The company has a debt-to-equity ratio of 0.99, a current ratio of 0.84 and a quick ratio of 0.84. Warner Bros. Discovery has a fifty-two week low of $6.64 and a fifty-two week high of $13.86. The business has a fifty day simple moving average of $11.02 and a 200-day simple moving average of $10.17.

Warner Bros. Discovery (NASDAQ:WBD - Get Free Report) last posted its earnings results on Thursday, May 8th. The company reported ($0.18) earnings per share for the quarter, missing the consensus estimate of ($0.12) by ($0.06). The firm had revenue of $8.98 billion during the quarter, compared to the consensus estimate of $9.66 billion. Warner Bros. Discovery had a negative return on equity of 30.56% and a negative net margin of 28.16%. The firm's revenue for the quarter was down 9.8% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.40) EPS. Research analysts predict that Warner Bros. Discovery will post -4.33 earnings per share for the current year.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Colonial Trust Advisors increased its holdings in Warner Bros. Discovery by 71.8% during the 4th quarter. Colonial Trust Advisors now owns 2,383 shares of the company's stock worth $25,000 after purchasing an additional 996 shares during the last quarter. WPG Advisers LLC purchased a new stake in shares of Warner Bros. Discovery in the first quarter worth approximately $26,000. Financial Gravity Asset Management Inc. bought a new stake in Warner Bros. Discovery in the first quarter worth approximately $27,000. North Capital Inc. acquired a new position in Warner Bros. Discovery during the 1st quarter worth $28,000. Finally, Smallwood Wealth Investment Management LLC bought a new stake in shares of Warner Bros. Discovery in the 1st quarter worth approximately $29,000. 59.95% of the stock is currently owned by institutional investors and hedge funds.

About Warner Bros. Discovery

Warner Bros. Discovery, Inc operates as a media and entertainment company worldwide. It operates through three segments: Studios, Network, and DTC. The Studios segment produces and releases feature films for initial exhibition in theaters; produces and licenses television programs to its networks and third parties and direct-to-consumer services; distributes films and television programs to various third parties and internal television; and offers streaming services and distribution through the home entertainment market, themed experience licensing, and interactive gaming.