Warner Bros. Discovery (NASDAQ:WBD) Stock Rating Upgraded by Freedom Capital

Key Points

• Freedom Capital upgraded Warner Bros. Discovery to “strong buy” from “hold,” though the broader analyst consensus remains “hold” with a $27.69 price target.
• WBD shares opened at $27.07 and were trading up 0.7%; the stock has ranged from $10.79 to $30.00 over the past year and has a market capitalization of approximately $67.87 billion.
• The company beat quarterly EPS expectations with $0.06 versus the anticipated $0.14 loss, but revenue of $8.72 billion missed estimates and declined 11.2% year over year, highlighting continued operating weakness.

Warner Bros. Discovery (NASDAQ:WBD - Get Free Report) was upgraded by Freedom Capital from a "hold" rating to a "strong-buy" rating in a note issued to investors on Monday,Zacks.com reports.

WBD has been the subject of a number of other reports. UBS Group lifted their price target on Warner Bros. Discovery from $30.00 to $31.00 and gave the stock a "neutral" rating in a research note on Thursday, May 7th. Zacks Research cut Warner Bros. Discovery from a "hold" rating to a "strong sell" rating in a research note on Monday, July 27th. Guggenheim reaffirmed a "neutral" rating on shares of Warner Bros. Discovery in a report on Thursday, May 7th. KeyCorp reiterated an "overweight" rating on shares of Warner Bros. Discovery in a research report on Friday, April 24th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Warner Bros. Discovery in a report on Tuesday, August 4th. Two analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating, twelve have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $27.69.

Warner Bros. Discovery Trading Up 0.7%

WBD opened at $27.07 on Monday. Warner Bros. Discovery has a 12-month low of $10.79 and a 12-month high of $30.00. The company has a debt-to-equity ratio of 0.90, a current ratio of 0.78 and a quick ratio of 0.78. The stock has a market capitalization of $67.87 billion, a PE ratio of -21.31 and a beta of 1.55. The firm's fifty day moving average price is $26.48 and its 200 day moving average price is $27.17.

Warner Bros. Discovery (NASDAQ:WBD - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.06 earnings per share for the quarter, topping the consensus estimate of ($0.14) by $0.20. The company had revenue of $8.72 billion during the quarter, compared to analyst estimates of $9.25 billion. Warner Bros. Discovery had a negative net margin of 8.77% and a negative return on equity of 8.91%. The firm's revenue for the quarter was down 11.2% compared to the same quarter last year. During the same period last year, the business earned $0.63 EPS. As a group, research analysts expect that Warner Bros. Discovery will post -1.15 EPS for the current fiscal year.

Hedge Funds Weigh In On Warner Bros. Discovery

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Harbor Investment Advisory LLC lifted its holdings in shares of Warner Bros. Discovery by 111.2% in the 2nd quarter. Harbor Investment Advisory LLC now owns 942 shares of the company's stock worth $25,000 after purchasing an additional 496 shares during the last quarter. Swiss RE Ltd. bought a new position in Warner Bros. Discovery during the 4th quarter worth $26,000. Elevation Wealth Partners LLC grew its stake in Warner Bros. Discovery by 64.3% during the 2nd quarter. Elevation Wealth Partners LLC now owns 1,009 shares of the company's stock worth $27,000 after buying an additional 395 shares during the last quarter. Fideuram Asset Management Ireland dac acquired a new stake in Warner Bros. Discovery in the fourth quarter worth $29,000. Finally, MV Capital Management Inc. acquired a new stake in Warner Bros. Discovery in the fourth quarter worth $30,000. 59.95% of the stock is currently owned by institutional investors and hedge funds.

Warner Bros. Discovery News Summary

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

• Positive Sentiment: Merger progress and potential shareholder payments: Warner Bros. Discovery reportedly received UK clearance for its proposed approximately $110 billion takeover by Paramount Skydance. If the transaction closes, Paramount Skydance is expected to pay WBD shareholders a quarterly “ticking fee” beginning September 30 until completion, potentially supporting WBD’s value while investors await regulatory resolution. Warner Bros. Discovery Wins UK Clearance For $110 Billion Takeover
• Positive Sentiment: Quarterly earnings beat: WBD reported second-quarter adjusted earnings of $0.06 per share, surpassing the consensus estimate for a $0.14 loss. Streaming subscriber and margin gains helped offset weaker Studios and Global Linear Networks results. WBD Q2 Earnings Beat Estimates, Revenues Miss on Studios Weakness
• Positive Sentiment: Potential theatrical support: A proposed Paramount-WBD arrangement would guarantee exhibitors 30 exclusive theatrical releases annually, including 15 from WBD, with defined theatrical and streaming windows. If approved, the deal could provide more predictable studio distribution and strengthen the strategic rationale for the merger.
• Neutral Sentiment: Short-interest data is inconclusive: The reported August short-interest figure is zero shares, unchanged from a prior zero-share reading, with a zero-day short-interest ratio. The apparent “large increase” is mathematically inconsistent and likely reflects a data-reporting issue rather than a meaningful shift in investor positioning.
• Negative Sentiment: Antitrust uncertainty remains the principal risk: California Attorney General Rob Bonta is pursuing litigation to challenge the merger. Paramount CEO David Ellison reportedly threatened to begin moving Paramount out of California if negotiations do not produce a settlement, highlighting the escalating political and legal conflict. David Ellison Told Top Execs Paramount Will Exit California If AG Refuses To Negotiate Settlement In WBD Merger Suit
• Negative Sentiment: Underlying operating weakness persists: WBD’s quarterly revenue missed estimates, while Studios and Global Linear Networks remained weak. Reports also characterized recent film releases, including Supergirl and The Bride, as major box-office disappointments, reinforcing concerns about content performance and profitability.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source