Warner Bros. Discovery (NASDAQ:WBD) Lowered to Neutral Rating by Moffett Nathanson

Key Points

• Moffett Nathanson downgraded Warner Bros. Discovery from "buy" to "neutral" with a $31 price target (about 11.6% upside), while the Street consensus is a "Hold" with an average price target of $25.34 (5 buys, 17 holds, 2 sells).
• Q4 results disappointed: WBD reported ($0.10) EPS vs. $0.09 expected and $9.46B in revenue (vs. $9.33B), with revenue down 5.7% year-over-year and analysts projecting -4.33 EPS for the current year.
• Significant insider selling has weighed on sentiment — insiders disposed of 7.78M shares (~$219.6M) over the past three months, including CEO David Zaslav’s sale of 4,004,149 shares and notable CFO selling.

Warner Bros. Discovery (NASDAQ:WBD - Get Free Report) was downgraded by research analysts at Moffett Nathanson from a "buy" rating to a "neutral" rating in a research report issued on Friday,MarketScreener reports. They presently have a $31.00 price objective on the stock. Moffett Nathanson's price target suggests a potential upside of 11.63% from the company's previous close.

A number of other equities analysts also recently commented on the company. UBS Group upped their target price on Warner Bros. Discovery from $20.00 to $30.00 and gave the company a "neutral" rating in a report on Wednesday, January 28th. Huber Research downgraded Warner Bros. Discovery from a "strong-buy" rating to a "strong sell" rating in a report on Friday, February 27th. Arete Research reaffirmed a "neutral" rating and set a $31.25 price target on shares of Warner Bros. Discovery in a report on Friday, February 27th. Barrington Research cut Warner Bros. Discovery from an "outperform" rating to a "hold" rating in a report on Friday, December 5th. Finally, The Goldman Sachs Group upped their target price on shares of Warner Bros. Discovery from $13.00 to $14.75 and gave the company a "buy" rating in a report on Friday, November 7th. Five equities research analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $25.34.

Warner Bros. Discovery Stock Down 0.8%

WBD opened at $27.77 on Friday. Warner Bros. Discovery has a 12 month low of $7.52 and a 12 month high of $30.00. The company has a current ratio of 1.06, a quick ratio of 1.07 and a debt-to-equity ratio of 0.87. The business's 50-day moving average price is $28.29 and its 200-day moving average price is $23.11. The company has a market cap of $68.81 billion, a P/E ratio of 95.76 and a beta of 1.60.

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

Insider Activity

In other Warner Bros. Discovery news, insider Bruce Campbell sold 55,118 shares of the company's stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $28.00, for a total value of $1,543,304.00. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Gunnar Wiedenfels sold 374,323 shares of the firm's stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $28.05, for a total transaction of $10,499,760.15. Following the completion of the transaction, the chief financial officer directly owned 663,380 shares in the company, valued at $18,607,809. This represents a 36.07% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 7,782,159 shares of company stock worth $219,565,426 in the last three months. Corporate insiders own 1.90% of the company's stock.

Institutional Investors Weigh In On Warner Bros. Discovery

Several large investors have recently modified their holdings of WBD. Concord Wealth Partners boosted its position in Warner Bros. Discovery by 49.9% during the 3rd quarter. Concord Wealth Partners now owns 1,321 shares of the company's stock valued at $26,000 after acquiring an additional 440 shares in the last quarter. Swiss RE Ltd. bought a new stake in shares of Warner Bros. Discovery in the 4th quarter valued at about $26,000. Physician Wealth Advisors Inc. grew its position in shares of Warner Bros. Discovery by 152.1% in the 3rd quarter. Physician Wealth Advisors Inc. now owns 1,404 shares of the company's stock worth $27,000 after buying an additional 847 shares during the last quarter. Financial Gravity Companies Inc. bought a new position in shares of Warner Bros. Discovery during the 2nd quarter worth approximately $29,000. Finally, Fideuram Asset Management Ireland dac purchased a new stake in Warner Bros. Discovery during the fourth quarter valued at approximately $29,000. Institutional investors own 59.95% of the company's stock.

More Warner Bros. Discovery News

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

• Positive Sentiment: Paramount’s purchase of Warner Bros. Discovery — coverage focuses on what the sale means for assets such as CNN and Turner (possible strategic simplification, value realization, and a takeover premium that supports WBD’s share price). Article Title
• Positive Sentiment: Buy-side leadership signals: David Ellison (Paramount/Skydance) vows CNN will operate independently post-deal — reduces some regulatory/brand-integration risk and reassures that news assets may be preserved rather than dismantled. Article Title
• Positive Sentiment: M&A analysis and investor materials emphasize strategic reshaping and bidder dynamics — analysts and advisors are framing the transaction as a value-reset event for WBD shareholders. Article Title
• Neutral Sentiment: Industry/creative impact: IMAX’s CEO highlights WBD films among Oscar nominees — positive for franchise/IP credibility but limited direct near-term share impact. Article Title
• Neutral Sentiment: After the collapsed Netflix bid earlier in the process, Business Insider outlines how Netflix benefited financially from walking away — relevant for competitive landscape but not directly altering WBD takeover dynamics. Article Title
• Neutral Sentiment: Third-party activity (reports of investors buying Netflix debt amid the WBD fight) signals opportunistic moves around the media contest but is peripheral to WBD’s core valuation drivers. Article Title
• Negative Sentiment: Large insider selling by multiple executives including CEO David Zaslav (4,004,149 shares), the CFO and other insiders — sizable disposals can signal liquidity taking, tax/planned sales or concern about upside post-deal and are weighing on sentiment. SEC filings detail the transactions. Article Title
• Negative Sentiment: Argus issues a pessimistic forecast for WBD stock — an explicit analyst downgrade/bearish note may cap upside and encourage short-term profit-taking. Article Title

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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