Warner Bros. Discovery, Inc. (NASDAQ:WBD) Short Interest Up 24.5% in March

Key Points

• Short interest in Warner Bros. Discovery rose 24.5% in March to 59.43 million shares (about 2.4% of shares short) with a short‑interest ratio of 2.0 days.
• Paramount‑WBD merger is facing heightened political, regulatory and industry scrutiny — Senate hearings, UK probes and widespread Hollywood/theater opposition increase the likelihood of a renegotiated or constrained deal.
• Insider selling has been substantial recently: Gerhard Zeiler sold 600,000 shares and insiders disposed of about 8.21 million shares (~$230.7M) over the past 90 days, leaving insiders with ~1.90% ownership.

Warner Bros. Discovery, Inc. (NASDAQ:WBD - Get Free Report) saw a significant growth in short interest in the month of March. As of March 31st, there was short interest totaling 59,430,740 shares, a growth of 24.5% from the March 15th total of 47,733,517 shares. Approximately 2.4% of the shares of the company are short sold. Based on an average daily volume of 30,212,888 shares, the short-interest ratio is presently 2.0 days.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on WBD. Argus dropped their price objective on shares of Warner Bros. Discovery from $32.00 to $31.00 and set a "buy" rating on the stock in a report on Tuesday, March 3rd. 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. Raymond James Financial reaffirmed an "underperform" rating on shares of Warner Bros. Discovery in a report on Friday, February 27th. Deutsche Bank Aktiengesellschaft cut shares of Warner Bros. Discovery from a "buy" rating to a "hold" rating and increased their price objective for the stock from $29.50 to $31.00 in a report on Friday, February 27th. Finally, Sanford C. Bernstein increased their price objective 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. One 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 given a Sell rating to the company's stock. According to data from MarketBeat.com, Warner Bros. Discovery currently has a consensus rating of "Hold" and a consensus target price of $26.30.

Warner Bros. Discovery Stock Performance

Shares of WBD opened at $27.20 on Thursday. The firm has a 50-day moving average price of $27.76 and a 200 day moving average price of $25.75. The firm has a market capitalization of $67.45 billion, a PE ratio of 93.80 and a beta of 1.63. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.87. Warner Bros. Discovery has a 52-week low of $7.75 and a 52-week high of $30.00.

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

Key Stories Impacting Warner Bros. Discovery

Here are the key news stories impacting Warner Bros. Discovery this week:

• Neutral Sentiment: Netflix’s failed bid for WBD and its subsequent refocus on ads and content means Netflix is out of the auction — eliminating one potential suitor but leaving the contentious Paramount Skydance deal as the focal point. This changes strategic dynamics but increases focus on the remaining bid. Netflix to refocus on ads, content after failed Warner Bros bid
• Neutral Sentiment: Paramount CEO David Ellison announced he cannot attend a Senate hearing on the merger for a personal reason; Senator Cory Booker still wants testimony. Ellison’s absence adds short‑term procedural noise but does not by itself resolve regulatory questions. Paramount CEO David Ellison Can't Attend Senate Hearing on Warner Bros. Merger Because of Death in the Family
• Negative Sentiment: Sen. Cory Booker has scheduled a “spotlight” hearing on the Paramount‑WBD deal and is inviting Ellison to testify — this escalates political scrutiny and could slow or complicate regulatory approval. Cory Booker To Hold “Spotlight” Hearing On Paramount-Warner Bros. Discovery Merger, Invites David Ellison To Testify
• Negative Sentiment: Broad Hollywood opposition is mounting: over 1,000 creators and industry figures, plus prominent voices like Damon Lindelof, warn the merger would harm production and studio ecosystems — reputational and talent‑retention risks that could depress future content output and margins. Hollywood Pushback And Regulators Test Warner Bros. Discovery Deal Risks
• Negative Sentiment: Industry groups and theater owners warn the deal would consolidate too much power and harm cinemas — another stakeholder bloc opposing the merger that increases the likelihood of regulatory intervention or conditions. Theater group says Paramount, Warner Bros merger 'harmful' to industry
• Negative Sentiment: UK competition authorities have opened probes and proxy advisors are pushing back on deal‑related executive payouts — combined regulatory and governance scrutiny raises the odds of a renegotiated or constrained transaction (a “hostile rewrite”). Warner Bros. Discovery’s Blockbuster Deal Faces a Hostile Rewrite

Insider Activity at Warner Bros. Discovery

In other Warner Bros. Discovery news, insider Gerhard Zeiler sold 600,000 shares of the stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $28.02, for a total transaction of $16,812,000.00. Following the sale, the insider directly owned 672,649 shares of the company's stock, valued at approximately $18,847,624.98. This represents a 47.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Fazal F. Merchant sold 35,000 shares of the stock in a transaction 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 sale, the director directly owned 95,539 shares in the company, valued at $2,625,411.72. This trade represents a 26.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 8,206,827 shares of company stock valued at $230,674,025 in the last ninety days. 1.90% of the stock is owned by insiders.

Hedge Funds Weigh In On Warner Bros. Discovery

Institutional investors and hedge funds have recently bought and sold shares of the stock. TriaGen Wealth Management LLC bought a new position in Warner Bros. Discovery in the 3rd quarter valued at about $443,000. Swedbank AB boosted its position in shares of Warner Bros. Discovery by 3.7% during the 3rd quarter. Swedbank AB now owns 1,065,445 shares of the company's stock valued at $20,808,000 after purchasing an additional 37,986 shares in the last quarter. Mackay Shields LLC bought a new position in shares of Warner Bros. Discovery during the 3rd quarter valued at about $7,812,000. New York State Teachers Retirement System boosted its position in shares of Warner Bros. Discovery by 4.1% during the 3rd quarter. New York State Teachers Retirement System now owns 1,775,964 shares of the company's stock valued at $34,685,000 after purchasing an additional 69,141 shares in the last quarter. Finally, Private Advisory Group LLC bought a new position in shares of Warner Bros. Discovery during the 4th quarter valued at about $3,438,000. Institutional investors own 59.95% of the company's stock.

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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