Analysts Set Warner Bros. Discovery, Inc. (NASDAQ:WBD) Price Target at $27.69

Warner Bros. Discovery, Inc. (NASDAQ:WBD) has received an average rating of “Hold” from the twenty-two analysts that are covering the stock, MarketBeat reports. Three research analysts have rated the stock with a sell rating, twelve have given a hold rating, six have issued a buy rating and one has assigned a strong buy rating to the company. The average 12 month price target among brokers that have updated their coverage on the stock in the last year is $27.6912.

A number of research firms have issued reports on WBD. Seaport Research Partners cut Warner Bros. Discovery from a “buy” rating to a “neutral” rating in a research note on Monday, July 27th. Huber Research upgraded shares of Warner Bros. Discovery from an “underweight” rating to an “overweight” rating in a research report on Monday, June 1st. UBS Group increased their price objective on shares of Warner Bros. Discovery from $30.00 to $31.00 and gave the stock a “neutral” rating in a report on Thursday, May 7th. Zacks Research downgraded shares of Warner Bros. Discovery from a “hold” rating to a “strong sell” rating in a research report on Monday, July 27th. Finally, KeyCorp reissued an “overweight” rating on shares of Warner Bros. Discovery in a research note on Friday, April 24th.

Warner Bros. Discovery News Roundup

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 Stock Up 0.7%

Shares of Warner Bros. Discovery stock opened at $27.07 on Friday. The company has a current ratio of 0.78, a quick ratio of 0.78 and a debt-to-equity ratio of 0.90. The business’s 50 day simple moving average is $26.48 and its 200-day simple moving average is $27.17. The stock has a market capitalization of $67.87 billion, a price-to-earnings ratio of -21.31 and a beta of 1.55. Warner Bros. Discovery has a twelve month low of $10.79 and a twelve month high of $30.00.

Warner Bros. Discovery (NASDAQ:WBD) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.06 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.14) by $0.20. The business had revenue of $8.72 billion for the quarter, compared to the consensus estimate of $9.25 billion. Warner Bros. Discovery had a negative return on equity of 8.91% and a negative net margin of 8.77%.The business’s revenue was down 11.2% on a year-over-year basis. During the same quarter last year, the business posted $0.63 EPS. Equities research analysts forecast that Warner Bros. Discovery will post -1.15 earnings per share for the current year.

Hedge Funds Weigh In On Warner Bros. Discovery

Hedge funds and other institutional investors have recently made changes to their positions in the business. Bank of America Corp DE raised its position in Warner Bros. Discovery by 21.9% during the first quarter. Bank of America Corp DE now owns 16,616,949 shares of the company’s stock valued at $456,301,000 after buying an additional 2,980,900 shares during the period. Handelsbanken Fonder AB boosted its position in Warner Bros. Discovery by 130.8% during the 4th quarter. Handelsbanken Fonder AB now owns 1,008,638 shares of the company’s stock worth $29,069,000 after acquiring an additional 571,612 shares during the period. Brighton Jones LLC boosted its position in Warner Bros. Discovery by 304.9% during the 4th quarter. Brighton Jones LLC now owns 68,950 shares of the company’s stock worth $729,000 after acquiring an additional 51,920 shares during the period. Varma Mutual Pension Insurance Co purchased a new position in Warner Bros. Discovery during the 4th quarter valued at about $12,372,000. Finally, Geode Capital Management LLC grew its stake in Warner Bros. Discovery by 1.6% during the 4th quarter. Geode Capital Management LLC now owns 66,597,575 shares of the company’s stock valued at $1,912,634,000 after acquiring an additional 1,028,346 shares in the last quarter. 59.95% of the stock is currently owned by institutional investors and hedge funds.

About Warner Bros. Discovery

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.