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

Shares of Warner Bros. Discovery, Inc. (NASDAQ:WBD - Get Free Report) gapped down prior to trading on Monday . The stock had previously closed at $8.54, but opened at $8.18. Warner Bros. Discovery shares last traded at $8.47, with a volume of 8,017,388 shares trading hands.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on WBD shares. Raymond James reduced their target price on shares of Warner Bros. Discovery from $14.00 to $13.00 and set an "outperform" rating for the company in a report on Friday, April 4th. Wells Fargo & Company lifted their price objective on Warner Bros. Discovery from $9.00 to $10.00 and gave the company an "equal weight" rating in a research note on Friday. JPMorgan Chase & Co. upped their target price on Warner Bros. Discovery from $9.00 to $10.00 and gave the stock a "neutral" rating in a research note on Tuesday, January 14th. Barclays lifted their price target on Warner Bros. Discovery from $7.00 to $9.00 and gave the company an "equal weight" rating in a research report on Friday. Finally, Morgan Stanley lowered their price objective 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. Ten equities research analysts have rated the stock with a hold rating and eleven have given a buy rating to the stock. According to MarketBeat, Warner Bros. Discovery has an average rating of "Moderate Buy" and a consensus target price of $12.22.

Warner Bros. Discovery Price Performance

The stock has a 50 day moving average price of $9.35 and a 200-day moving average price of $9.82. The company has a debt-to-equity ratio of 1.03, a current ratio of 0.80 and a quick ratio of 0.80. The stock has a market capitalization of $22.19 billion, a price-to-earnings ratio of -1.97, a price-to-earnings-growth ratio of 8.64 and a beta of 1.46.

Warner Bros. Discovery (NASDAQ:WBD - Get Free Report) last released its earnings results on Thursday, May 8th. The company reported ($0.18) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.12) by ($0.06). The business had revenue of $8.98 billion for the quarter, compared to analysts' expectations of $9.66 billion. Warner Bros. Discovery had a negative return on equity of 27.56% and a negative net margin of 28.34%. Warner Bros. Discovery's quarterly revenue was down 9.8% compared to the same quarter last year. During the same period in the previous year, the company earned ($0.40) EPS. On average, analysts forecast that Warner Bros. Discovery, Inc. will post -4.33 earnings per share for the current year.

Insider Transactions at Warner Bros. Discovery

In other news, Director Piazza Samuel A. Jr. Di purchased 17,346 shares of the stock in a transaction dated Monday, March 3rd. The shares were purchased at an average price of $11.41 per share, with a total value of $197,917.86. Following the transaction, the director now owns 159,932 shares in the company, valued at $1,824,824.12. The trade was a 12.17 % increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 1.80% of the company's stock.

Institutional Investors Weigh In On Warner Bros. Discovery

Several hedge funds and other institutional investors have recently bought and sold shares of WBD. Norges Bank acquired a new stake in shares of Warner Bros. Discovery during the 4th quarter worth approximately $362,210,000. Contrarius Group Holdings Ltd acquired a new stake in shares of Warner Bros. Discovery during the 4th quarter worth about $168,930,000. FMR LLC lifted its position in Warner Bros. Discovery by 478.5% in the fourth quarter. FMR LLC now owns 14,278,600 shares of the company's stock valued at $150,925,000 after buying an additional 11,810,191 shares during the last quarter. Slate Path Capital LP boosted its stake in Warner Bros. Discovery by 36.6% during the fourth quarter. Slate Path Capital LP now owns 23,801,000 shares of the company's stock worth $251,577,000 after buying an additional 6,381,000 shares during the period. Finally, KBC Group NV increased its position in shares of Warner Bros. Discovery by 682.8% during the first quarter. KBC Group NV now owns 7,145,308 shares of the company's stock valued at $76,669,000 after acquiring an additional 6,232,561 shares during the last quarter. 59.95% of the stock is currently owned by institutional investors and hedge funds.

Warner Bros. Discovery Company Profile

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.