TD Cowen Reaffirms Hold Rating for Warner Bros. Discovery (NASDAQ:WBD)

Key Points

• TD Cowen has downgraded Warner Bros. Discovery's stock rating from "buy" to "hold," with a new price target of $14.00, indicating a potential downside of 28.06% from its previous close.
• WBD has a market cap of approximately $48.18 billion, and its 52-week trading range spans from a low of $7.25 to a high of $19.59, highlighting significant volatility.
• Insider trades show conflicting sentiments, with a director acquiring 75,000 shares at $11.00 each while another insider sold 150,000 shares at $18.00, suggesting varied confidence among company insiders.

Warner Bros. Discovery (NASDAQ:WBD - Get Free Report)'s stock had its "hold" rating reiterated by stock analysts at TD Cowen in a research note issued on Tuesday, Marketbeat reports. They currently have a $14.00 target price on the stock. TD Cowen's target price would suggest a potential downside of 22.92% from the company's current price.

Several other equities research analysts have also recently weighed in on WBD. Benchmark restated a "buy" rating and issued a $18.00 price objective on shares of Warner Bros. Discovery in a research report on Monday, July 14th. 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. KeyCorp lowered their price objective on shares of Warner Bros. Discovery from $18.00 to $16.00 and set an "overweight" rating for the company in a research report on Friday, August 8th. Wells Fargo & Company raised their price objective on shares of Warner Bros. Discovery from $13.00 to $14.00 and gave the company an "equal weight" rating in a research report on Thursday, September 11th. Finally, Citigroup lowered their price target on shares of Warner Bros. Discovery from $15.00 to $14.00 and set a "buy" rating for the company in a research report on Thursday, May 29th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and thirteen have issued a Hold rating to the company's stock. According to MarketBeat, Warner Bros. Discovery presently has an average rating of "Hold" and a consensus target price of $13.25.

Warner Bros. Discovery Price Performance

WBD stock traded down $1.30 during trading on Tuesday, hitting $18.16. 21,662,518 shares of the stock traded hands, compared to its average volume of 50,225,609. Warner Bros. Discovery has a one year low of $7.25 and a one year high of $19.59. The stock has a market cap of $44.97 billion, a price-to-earnings ratio of 60.48, a P/E/G ratio of 2.51 and a beta of 1.59. The company has a 50 day simple moving average of $12.57 and a 200 day simple moving average of $10.71. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.92.

Warner Bros. Discovery (NASDAQ:WBD - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The company reported $0.63 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.16) by $0.79. The firm had revenue of $9.81 billion during the quarter, compared to the consensus estimate of $9.73 billion. Warner Bros. Discovery had a net margin of 2.00% and a return on equity of 2.14%. The firm's quarterly revenue was up 1.0% on a year-over-year basis. During the same period last year, the firm posted ($4.07) EPS. Equities analysts expect that Warner Bros. Discovery will post -4.33 EPS for the current fiscal year.

Insider Activity

In related news, Director Anton J. Levy bought 75,000 shares of the company's stock in a transaction dated Tuesday, August 12th. The stock was purchased at an average price of $11.00 per share, with a total value of $825,000.00. Following the completion of the acquisition, the director owned 949,000 shares of the company's stock, valued at $10,439,000. The trade was a 8.58% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Bruce Campbell sold 150,000 shares of the stock in a transaction dated Friday, September 12th. The stock was sold at an average price of $18.00, for a total transaction of $2,700,000.00. Following the completion of the transaction, the insider directly owned 252,464 shares of the company's stock, valued at $4,544,352. This trade represents a 37.27% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 1.80% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in WBD. WPG Advisers LLC acquired a new stake in Warner Bros. Discovery during the 1st quarter valued at approximately $26,000. Financial Gravity Asset Management Inc. acquired a new stake in Warner Bros. Discovery during the 1st quarter valued at approximately $27,000. North Capital Inc. acquired a new stake in Warner Bros. Discovery during the 1st quarter valued at approximately $28,000. Smallwood Wealth Investment Management LLC acquired a new stake in Warner Bros. Discovery during the 1st quarter valued at approximately $29,000. Finally, Financial Gravity Companies Inc. acquired a new stake in Warner Bros. Discovery during the 2nd quarter valued at approximately $29,000. Institutional investors and hedge funds own 59.95% of the company's stock.

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.