Warner Bros. Discovery (NASDAQ:WBD) Shares Gap Up – Still a Buy?

by · The Cerbat Gem

Warner Bros. Discovery, Inc. (NASDAQ:WBD – Get Free Report) shares gapped up prior to trading on Monday . The stock had previously closed at $26.08, but opened at $27.64. Warner Bros. Discovery shares last traded at $27.8450, with a volume of 32,113,219 shares traded.

Wall Street Analysts Forecast Growth

WBD has been the subject of several analyst reports. Argus set a $28.00 price target on shares of Warner Bros. Discovery in a report on Monday. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Warner Bros. Discovery in a report on Monday, December 1st. Redburn Partners set a $28.00 target price on shares of Warner Bros. Discovery in a research note on Thursday, October 30th. Barclays set a $20.00 price target on Warner Bros. Discovery in a research report on Wednesday, October 8th. Finally, Morgan Stanley raised their price target on Warner Bros. Discovery from $13.00 to $15.00 and gave the company an “equal weight” rating in a report on Thursday, September 25th. Three analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $22.35.

Check Out Our Latest Analysis on WBD

Warner Bros. Discovery Stock Up 3.9%

The firm has a 50 day moving average price of $21.38 and a 200-day moving average price of $15.57. The firm has a market cap of $67.13 billion, a price-to-earnings ratio of 142.93, a price-to-earnings-growth ratio of 1.00 and a beta of 1.60. The company has a debt-to-equity ratio of 0.90, a current ratio of 1.07 and a quick ratio of 1.07.

Warner Bros. Discovery (NASDAQ:WBD – Get Free Report) last announced its quarterly earnings data on Thursday, November 6th. The company reported ($0.06) EPS for the quarter, missing analysts’ consensus estimates of ($0.04) by ($0.02). Warner Bros. Discovery had a return on equity of 1.34% and a net margin of 1.28%.The firm had revenue of $9.05 billion during the quarter, compared to analyst estimates of $9.17 billion. During the same quarter in the previous year, the business earned $0.05 earnings per share. Warner Bros. Discovery’s revenue for the quarter was down 6.0% compared to the same quarter last year. As a group, equities analysts predict that Warner Bros. Discovery, Inc. will post -4.33 EPS for the current fiscal year.

Insider Buying and Selling at Warner Bros. Discovery

In other news, insider Bruce Campbell sold 289,322 shares of the stock in a transaction on Thursday, September 11th. The stock was sold at an average price of $16.48, for a total value of $4,768,026.56. Following the transaction, the insider owned 402,464 shares of the company’s stock, valued at $6,632,606.72. This represents a 41.82% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Gunnar Wiedenfels sold 530,793 shares of Warner Bros. Discovery stock in a transaction on Monday, September 15th. The stock was sold at an average price of $19.50, for a total value of $10,350,463.50. Following the sale, the chief financial officer directly owned 1,141,150 shares of the company’s stock, valued at approximately $22,252,425. This trade represents a 31.75% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 1,207,325 shares of company stock valued at $23,174,315. 1.80% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Warner Bros. Discovery

Hedge funds have recently added to or reduced their stakes in the stock. WPG Advisers LLC acquired a new position in shares of Warner Bros. Discovery during the 1st quarter worth about $26,000. Concord Wealth Partners raised its position in shares of Warner Bros. Discovery by 49.9% in the 3rd quarter. Concord Wealth Partners now owns 1,321 shares of the company’s stock valued at $26,000 after acquiring an additional 440 shares during the period. Physician Wealth Advisors Inc. boosted its stake in Warner Bros. Discovery by 152.1% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 1,404 shares of the company’s stock worth $27,000 after acquiring an additional 847 shares during the last quarter. Financial Gravity Companies Inc. acquired a new position in Warner Bros. Discovery during the second quarter valued at approximately $29,000. Finally, Grove Bank & Trust grew its holdings in Warner Bros. Discovery by 66.5% during the third quarter. Grove Bank & Trust now owns 1,690 shares of the company’s stock valued at $33,000 after purchasing an additional 675 shares during the period. Institutional investors and hedge funds own 59.95% of the company’s stock.

About Warner Bros. Discovery

(Get Free Report)

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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