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

Warner Bros. Discovery, Inc. (NASDAQ:WBD - Get Free Report) shares gapped down prior to trading 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 trading hands.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on WBD shares. Morgan Stanley lowered their price target on Warner Bros. Discovery from $12.00 to $10.00 and set an "equal weight" rating on the stock in a research report on Tuesday, May 6th. Raymond James Financial decreased their price objective on Warner Bros. Discovery from $14.00 to $13.00 and set an "outperform" rating on the stock in a report on Friday, April 4th. Argus raised Warner Bros. Discovery to a "hold" rating in a research note on Tuesday, May 27th. Huber Research upgraded shares of Warner Bros. Discovery from a "strong sell" rating to a "strong-buy" rating in a research report on Monday, June 9th. Finally, Bank of America boosted their price objective on shares of Warner Bros. Discovery from $14.00 to $16.00 and gave the stock a "buy" rating in a report on Tuesday. Eleven investment analysts have rated the stock with a hold rating, eleven have issued a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, Warner Bros. Discovery presently has a consensus rating of "Moderate Buy" and an average target price of $12.33.

Warner Bros. Discovery Stock Performance

The business has a fifty day moving average of $9.74 and a 200-day moving average of $9.94. The company has a market cap of $27.51 billion, a PE ratio of -2.55 and a beta of 1.54. 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 issued its quarterly earnings data on Thursday, May 8th. The company reported ($0.18) earnings per share for the quarter, missing analysts' consensus estimates of ($0.12) by ($0.06). The business 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%. Warner Bros. Discovery's quarterly revenue was down 9.8% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.40) earnings per share. Equities research analysts anticipate that Warner Bros. Discovery, Inc. will post -4.33 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Colonial Trust Advisors boosted its stake in shares of Warner Bros. Discovery by 71.8% during the 4th quarter. Colonial Trust Advisors now owns 2,383 shares of the company's stock valued at $25,000 after purchasing an additional 996 shares in the last quarter. WPG Advisers LLC purchased a new stake in Warner Bros. Discovery in the first quarter worth about $26,000. Financial Gravity Asset Management Inc. bought a new stake in Warner Bros. Discovery during the 1st quarter valued at approximately $27,000. SRS Capital Advisors Inc. boosted its position in Warner Bros. Discovery by 313.4% during the 4th quarter. SRS Capital Advisors Inc. now owns 2,559 shares of the company's stock valued at $27,000 after acquiring an additional 1,940 shares in the last quarter. Finally, North Capital Inc. purchased a new position in shares of Warner Bros. Discovery during the 1st quarter worth approximately $28,000. 59.95% of the stock is owned by hedge funds and other 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.