Sumitomo Mitsui Trust Group Inc. has reduced its investment in Warner Bros. Discovery, Inc. by 5.0% during the second quarter of 2023, according to its recent filing with the Securities and Exchange Commission (SEC). The firm now holds 4,897,479 shares of Warner Bros. Discovery, valued at approximately $56.13 million, following the sale of 255,194 shares during the reporting period.
Several other institutional investors also adjusted their positions in Warner Bros. Discovery. For instance, WPG Advisers LLC acquired a new stake valued at around $26,000, while Financial Gravity Asset Management Inc. and North Capital Inc. made similar moves, with new positions estimated at $27,000 and $28,000, respectively. Notably, Golden State Wealth Management LLC significantly increased its stake by 448.0% in the first quarter, now owning 2,877 shares valued at $31,000.
Institutional investors and hedge funds currently hold 59.95% of the company’s stock, highlighting significant confidence in the firm despite recent fluctuations.
Analyst Ratings and Market Performance
Recent reports from financial analysts present a mixed outlook for Warner Bros. Discovery. The Goldman Sachs Group raised its price target from $11.50 to $13.00, maintaining a “neutral” rating as of September 30. Wells Fargo & Company followed suit, increasing its target from $14.00 to $21.00 and issuing an “equal weight” rating on October 16. Additionally, Deutsche Bank Aktiengesellschaft and Seaport Global Securities lifted their targets to $23.00 and $24.00, respectively, both assigning “buy” ratings.
As of now, one analyst has given Warner Bros. Discovery a Strong Buy rating, while nine analysts have rated it as a Buy and sixteen have issued a Hold rating. The average consensus target price currently stands at $17.68 according to MarketBeat.com.
Insider Trading Activity and Current Stock Performance
In other noteworthy developments, Warner Bros. Discovery’s Director, Anton J. Levy, purchased 75,000 shares at an average price of $11.00, totaling $825,000, on August 12. This purchase increased Levy’s holdings to 949,000 shares, valued at approximately $10.44 million.
Conversely, insider Bruce Campbell sold 150,000 shares on September 12 for an average price of $18.00, netting $2.7 million. Following this transaction, Campbell holds 252,464 shares, valued at about $4.54 million. In total, insiders have sold 970,115 shares of the company, amounting to $17.82 million over the past 90 days, with insiders currently owning 1.80% of the stock.
Warner Bros. Discovery’s stock opened at $21.04 on Tuesday, representing a 0.5% decrease. The company maintains a market capitalization of $52.09 billion and has a price-to-earnings ratio of 70.14. Over the past year, the stock has fluctuated between a low of $7.49 and a high of $21.57.
On August 7, Warner Bros. Discovery reported quarterly earnings, posting an earnings per share (EPS) of $0.63, significantly exceeding analysts’ expectations of a loss of ($0.16) by $0.79. The company’s revenue for the quarter amounted to $9.81 billion, surpassing predictions of $9.73 billion, marking a 1.0% year-over-year increase.
Analysts anticipate that Warner Bros. Discovery will post an EPS of ($4.33) for the current year as it navigates the competitive media landscape.
Warner Bros. Discovery operates globally as a prominent media and entertainment company through three segments: Studios, Network, and Direct-to-Consumer (DTC). The company’s diverse offerings include film production, television programming, streaming services, and interactive gaming, positioning it as a significant player in the industry.
