Warner Bros. Discovery Sees Unusually High Options Volume (NASDAQ:WBD)

Key Points

• Warner Bros. Discovery saw a significant increase in options trading, with investors purchasing 144,796 call options, a rise of approximately 291% compared to average volume.
• The company's stock price rose 7.1% to $13.44, with a market cap of $33.26 billion and a PE ratio of 44.75.
• Insider activity includes Director Anton J. Levy purchasing 250,000 shares at an average price of $10.90, increasing his position in the company by over 40%.

Warner Bros. Discovery, Inc. (NASDAQ:WBD - Get Free Report) was the target of some unusual options trading activity on Thursday. Investors bought 144,796 call options on the company. This represents an increase of approximately 291% compared to the typical volume of 37,075 call options.

Warner Bros. Discovery Stock Up 7.1%

NASDAQ WBD traded up $0.90 during trading hours on Thursday, reaching $13.44. 64,163,266 shares of the company's stock traded hands, compared to its average volume of 47,382,797. Warner Bros. Discovery has a 52-week low of $7.08 and a 52-week high of $13.86. The firm has a 50-day simple moving average of $12.14 and a 200 day simple moving average of $10.57. The company has a debt-to-equity ratio of 0.92, a current ratio of 1.04 and a quick ratio of 1.04. The firm has a market cap of $33.26 billion, a PE ratio of 44.75, a PEG ratio of 1.63 and a beta of 1.59.

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

Analyst Ratings Changes

WBD has been the subject of several recent analyst reports. Barrington Research reiterated an "outperform" rating and issued a $16.00 price objective on shares of Warner Bros. Discovery in a research report on Wednesday, July 30th. Benchmark reiterated a "buy" rating and set a $18.00 price objective on shares of Warner Bros. Discovery in a research note on Monday, July 14th. Barclays boosted their target price on shares of Warner Bros. Discovery from $9.00 to $13.00 and gave the company an "equal weight" rating in a research note on Wednesday, July 9th. Argus upgraded Warner Bros. Discovery to a "hold" rating in a research report on Tuesday, May 27th. Finally, Wells Fargo & Company boosted their price objective on shares of Warner Bros. Discovery from $13.00 to $14.00 and gave the stock an "equal weight" rating in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and eleven have issued a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $13.20.

Insider Buying and Selling

In other Warner Bros. Discovery news, Director Anton J. Levy purchased 250,000 shares of the business's stock in a transaction on Monday, August 11th. The stock was acquired at an average cost of $10.90 per share, for a total transaction of $2,725,000.00. Following the completion of the transaction, the director directly owned 874,000 shares in the company, valued at approximately $9,526,600. This represents a 40.06% increase in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Corporate insiders own 1.90% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in WBD. Norges Bank acquired a new stake in Warner Bros. Discovery during the second quarter worth $306,848,000. Independent Franchise Partners LLP bought a new position in Warner Bros. Discovery in the first quarter valued at about $140,224,000. Nuveen LLC acquired a new position in shares of Warner Bros. Discovery during the first quarter valued at about $96,971,000. Sound Shore Management Inc CT purchased a new position in Warner Bros. Discovery in the second quarter worth $97,951,000. Finally, Maverick Capital Ltd. purchased a new position in shares of Warner Bros. Discovery during the 2nd quarter valued at $77,896,000. Institutional investors and hedge funds own 59.95% of the company's stock.

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.

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