Wolfe Research Lowers Warner Bros. Discovery (NASDAQ:WBD) to Underperform

Warner Bros. Discovery (NASDAQ:WBD) was downgraded by research analysts at Wolfe Research from a “peer perform” rating to an “underperform” rating in a report issued on Tuesday, MarketBeat.com reports. They currently have a $7.00 price target on the stock. Wolfe Research’s price objective suggests a potential downside of 16.47% from the company’s previous close.

A number of other equities research analysts have also issued reports on WBD. Barclays dropped their target price on shares of Warner Bros. Discovery from $10.00 to $9.00 and set an “equal weight” rating for the company in a report on Thursday, February 29th. Barrington Research dropped their price target on shares of Warner Bros. Discovery from $18.00 to $16.00 and set an “outperform” rating on the stock in a research note on Monday, February 26th. Macquarie lowered their target price on shares of Warner Bros. Discovery from $16.00 to $14.00 and set an “outperform” rating on the stock in a research report on Monday, January 22nd. Redburn Atlantic downgraded Warner Bros. Discovery from a “buy” rating to a “neutral” rating and set a $11.00 price target for the company. in a report on Thursday, January 11th. Finally, JPMorgan Chase & Co. lowered their target price on shares of Warner Bros. Discovery from $13.00 to $10.00 and set a “neutral” rating on the stock in a research report on Monday, February 26th. One analyst has rated the stock with a sell rating, seven have assigned a hold rating and ten have given a buy rating to the stock. According to data from MarketBeat, Warner Bros. Discovery currently has an average rating of “Moderate Buy” and a consensus target price of $13.83.

Warner Bros. Discovery Stock Performance

Shares of NASDAQ WBD opened at $8.38 on Tuesday. The company has a current ratio of 0.93, a quick ratio of 0.93 and a debt-to-equity ratio of 0.90. Warner Bros. Discovery has a 12 month low of $8.02 and a 12 month high of $14.76. The company has a 50 day simple moving average of $8.72 and a two-hundred day simple moving average of $10.02. The stock has a market cap of $20.44 billion, a price-to-earnings ratio of -6.52 and a beta of 1.51.

Warner Bros. Discovery (NASDAQ:WBD) last posted its earnings results on Friday, February 23rd. The company reported ($0.16) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.11) by ($0.05). Warner Bros. Discovery had a negative net margin of 7.57% and a negative return on equity of 3.48%. The firm had revenue of $10.28 billion during the quarter, compared to analyst estimates of $10.34 billion. During the same quarter in the prior year, the firm earned $0.42 earnings per share. The business’s revenue for the quarter was down 6.6% on a year-over-year basis. As a group, analysts predict that Warner Bros. Discovery will post -0.35 earnings per share for the current year.

Hedge Funds Weigh In On Warner Bros. Discovery

Several hedge funds have recently bought and sold shares of WBD. Park Place Capital Corp grew its position in Warner Bros. Discovery by 33.4% during the third quarter. Park Place Capital Corp now owns 3,677 shares of the company’s stock worth $40,000 after buying an additional 921 shares in the last quarter. Forum Financial Management LP lifted its stake in Warner Bros. Discovery by 2.3% during the third quarter. Forum Financial Management LP now owns 42,179 shares of the company’s stock worth $458,000 after purchasing an additional 948 shares during the period. Bridgeworth LLC lifted its stake in Warner Bros. Discovery by 7.4% during the fourth quarter. Bridgeworth LLC now owns 13,845 shares of the company’s stock worth $158,000 after purchasing an additional 952 shares during the period. Czech National Bank raised its stake in shares of Warner Bros. Discovery by 0.3% in the fourth quarter. Czech National Bank now owns 388,660 shares of the company’s stock valued at $4,423,000 after acquiring an additional 996 shares during the last quarter. Finally, Harbour Capital Advisors LLC raised its stake in shares of Warner Bros. Discovery by 1.8% in the fourth quarter. Harbour Capital Advisors LLC now owns 56,833 shares of the company’s stock valued at $642,000 after acquiring an additional 1,025 shares during the last quarter. 59.95% of the stock is owned by institutional investors and hedge funds.

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.