Warner Bros. Discovery (NASDAQ:WBD) Shares Gap Down - Here's Why

Warner Bros. Discovery, Inc. (NASDAQ:WBD - Get Free Report)'s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $11.46, but opened at $10.95. Warner Bros. Discovery shares last traded at $10.96, with a volume of 16,925,167 shares traded.

Analyst Upgrades and Downgrades

Several research firms have recently commented on WBD. Bank of America raised their price target on Warner Bros. Discovery from $14.00 to $16.00 and gave the stock a "buy" rating in a research report on Tuesday. Huber Research raised shares of Warner Bros. Discovery from a "strong sell" rating to a "strong-buy" rating in a research report on Monday, June 9th. Wells Fargo & Company raised their price target on shares of Warner Bros. Discovery from $10.00 to $11.00 and gave the company an "equal weight" rating in a research report on Wednesday. Barclays upped their price objective on Warner Bros. Discovery from $7.00 to $9.00 and gave the stock an "equal weight" rating in a research report on Friday, May 9th. Finally, Citigroup decreased their target price on Warner Bros. Discovery from $15.00 to $14.00 and set a "buy" rating for the company in a report on Thursday, May 29th. Eleven equities research analysts have rated the stock with a hold rating, eleven have assigned a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $12.33.

Warner Bros. Discovery Stock Up 1.6%

The stock has a market cap of $27.28 billion, a P/E ratio of -2.53 and a beta of 1.54. The stock's 50-day moving average is $9.63 and its 200-day moving average is $9.93. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.99.

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

Hedge Funds Weigh In On Warner Bros. Discovery

Institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. raised its stake in shares of Warner Bros. Discovery by 1.7% in the 1st quarter. Vanguard Group Inc. now owns 256,820,031 shares of the company's stock valued at $2,755,679,000 after acquiring an additional 4,169,240 shares in the last quarter. Geode Capital Management LLC lifted its position in Warner Bros. Discovery by 3.6% during the 4th quarter. Geode Capital Management LLC now owns 57,441,931 shares of the company's stock worth $605,633,000 after acquiring an additional 1,991,441 shares during the last quarter. Invesco Ltd. boosted its holdings in Warner Bros. Discovery by 2.1% during the first quarter. Invesco Ltd. now owns 43,341,297 shares of the company's stock valued at $465,052,000 after acquiring an additional 873,869 shares during the period. Norges Bank acquired a new stake in shares of Warner Bros. Discovery in the fourth quarter valued at about $362,210,000. Finally, Sessa Capital IM L.P. increased its position in Warner Bros. Discovery by 4.0% in the 1st quarter. Sessa Capital IM L.P. now owns 29,555,277 shares of the company's stock worth $317,128,000 after buying an additional 1,144,849 shares during the period. 59.95% of the stock is currently owned by institutional investors.

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.