Warner Bros. Discovery Target of Unusually High Options Trading (NASDAQ:WBD)

Key Points

• Unusually heavy put activity hit Warner Bros. Discovery, with investors buying 238,087 put options on Wednesday — about 255% above the normal daily volume.
• Analyst sentiment remains cautious overall, with the stock carrying a consensus rating of “Hold” and an average price target of $27.04, though some firms recently upgraded their views.
• The proposed Paramount-WBD merger faces a legal setback after a judge issued a temporary restraining order blocking the deal from closing for 14 days, increasing the risk of delay or tougher approval.

Warner Bros. Discovery, Inc. (NASDAQ:WBD - Get Free Report) saw some unusual options trading on Wednesday. Stock investors acquired 238,087 put options on the company. This is an increase of approximately 255% compared to the typical daily volume of 67,102 put options.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on WBD. Huber Research upgraded shares of Warner Bros. Discovery from an "underweight" rating to an "overweight" rating in a report on Monday, June 1st. KeyCorp restated an "overweight" rating on shares of Warner Bros. Discovery in a report on Friday, April 24th. Zacks Research raised shares of Warner Bros. Discovery from a "strong sell" rating to a "hold" rating in a research report on Monday, June 1st. Guggenheim reiterated a "neutral" rating on shares of Warner Bros. Discovery in a research note on Thursday, May 7th. Finally, Seaport Research Partners upgraded Warner Bros. Discovery from a "neutral" rating to a "buy" rating and set a $31.00 price objective for the company in a report on Monday, June 29th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, thirteen have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Warner Bros. Discovery presently has an average rating of "Hold" and a consensus price target of $27.04.

Warner Bros. Discovery News Summary

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

• Negative Sentiment: A judge granted a temporary restraining order that blocks the Paramount-WBD merger from closing for 14 days while the court reviews claims that the deal could harm competition. Paramount and Warner Bros. merger hit with temporary restraining order
• Negative Sentiment: The lawsuit from state attorneys general and the court pause raise the risk of a longer delay, or potentially a more difficult path to approval, for the roughly $110 billion transaction. Judge orders Paramount to temporarily pause Warner Bros acquisition
• Neutral Sentiment: Coverage ahead of WBD’s second-quarter 2026 earnings suggests investors are also waiting for financial results and management commentary for clues on operating trends and deal implications. Warner Bros. Discovery's Q2 2026 earnings: What to expect
• Neutral Sentiment: Media reports on the broader sale process and merger timeline highlight how large and disruptive the deal could be for Hollywood, but they do not add new operational details for WBD itself. What to know about the landmark Warner Bros. Discovery sale

Warner Bros. Discovery Stock Down 0.1%

WBD stock opened at $25.83 on Wednesday. The stock has a market capitalization of $64.76 billion, a PE ratio of -36.90 and a beta of 1.54. Warner Bros. Discovery has a 52 week low of $10.76 and a 52 week high of $30.00. The company has a quick ratio of 0.73, a current ratio of 0.73 and a debt-to-equity ratio of 0.92. The firm has a 50 day moving average of $26.80 and a 200 day moving average of $27.44.

Warner Bros. Discovery (NASDAQ:WBD - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The company reported ($1.17) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.10) by ($1.07). Warner Bros. Discovery had a negative net margin of 4.67% and a negative return on equity of 4.77%. The company had revenue of $8.89 billion for the quarter, compared to analyst estimates of $8.89 billion. During the same quarter in the previous year, the company posted ($0.18) EPS. The company's revenue for the quarter was down 1.0% compared to the same quarter last year. Sell-side analysts forecast that Warner Bros. Discovery will post -1.07 earnings per share for the current year.

Institutional Trading of Warner Bros. Discovery

A number of institutional investors and hedge funds have recently added to or reduced their stakes in WBD. Harbor Investment Advisory LLC increased its holdings in shares of Warner Bros. Discovery by 111.2% in the second quarter. Harbor Investment Advisory LLC now owns 942 shares of the company's stock valued at $25,000 after purchasing an additional 496 shares during the period. Swiss RE Ltd. acquired a new stake in shares of Warner Bros. Discovery during the fourth quarter worth about $26,000. Elevation Wealth Partners LLC boosted its position in Warner Bros. Discovery by 64.3% in the second quarter. Elevation Wealth Partners LLC now owns 1,009 shares of the company's stock valued at $27,000 after buying an additional 395 shares during the last quarter. Fideuram Asset Management Ireland dac purchased a new stake in Warner Bros. Discovery in the fourth quarter valued at approximately $29,000. Finally, MV Capital Management Inc. acquired a new position in Warner Bros. Discovery in the 4th quarter worth approximately $30,000. Institutional investors and hedge funds own 59.95% of the company's stock.

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.

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