Investment firm TSP Capital Management Group LLC has decreased its stake in Warner Bros. Discovery, Inc. (NASDAQ: WBD) by 1.8% during the second quarter of 2023, according to a report from Holdings Channel. Following the sale of 8,850 shares, TSP Capital now holds 473,573 shares of Warner Bros. Discovery, which represents approximately 1.7% of its total portfolio. The value of these holdings stood at about $5.43 million at the end of the reporting period, making it the 24th largest position in TSP Capital’s investment strategy.
Several other institutional investors have also adjusted their positions in Warner Bros. Discovery in recent months. For instance, Summit Investment Advisors Inc. increased its stake by 0.8% in the first quarter, now owning 101,522 shares valued at approximately $1.09 million. Similarly, Premier Path Wealth Partners LLC upped its holdings by 0.6% in the second quarter, bringing its total to 134,943 shares worth $1.55 million.
Additionally, Eastern Bank significantly expanded its position by 11.6%, acquiring 8,452 shares for a total value of about $97,000. Holistic Financial Partners and Parkside Financial Bank & Trust also made minor increases to their holdings, reflecting a general trend of institutional investment in the media sector. Currently, institutional investors and hedge funds collectively own nearly 60% of Warner Bros. Discovery’s stock.
Insider Transactions Raise Attention
In addition to institutional movements, insider trading has captured market interest. Gunnar Wiedenfels, the Chief Financial Officer of Warner Bros. Discovery, sold 222,210 shares on October 30, 2023, for an average price of $22.50, totaling about $5 million. This sale reduced Wiedenfels’ holdings to 918,940 shares, valued at around $20.68 million, representing a 19.47% decline in his position.
Another insider, Bruce Campbell, sold 150,000 shares on September 12, 2023, at an average price of $18.00, resulting in a transaction valued at $2.7 million. Post-transaction, Campbell holds 252,464 shares, valued at roughly $4.54 million, marking a 37.27% reduction in his stake. Over the past 90 days, insiders have sold a total of 1,192,325 shares, amounting to approximately $22.82 million. Currently, insiders hold about 1.90% of the company’s stock.
Warner Bros. Discovery’s Financial Performance
Warner Bros. Discovery recently reported its quarterly earnings, revealing a loss of $0.06 per share for the quarter ending November 6, 2023. This figure fell short of the consensus estimate of $0.04 by $0.02. The company recorded revenues of $9.05 billion, compared to analyst expectations of $9.17 billion. This reflects a 6.0% year-over-year decline in revenue, a notable concern among investors.
The company’s net margin stood at 2.00%, with a return on equity of 2.14%. Analysts project that Warner Bros. Discovery will post an earnings per share (EPS) of -$4.33 for the current fiscal year.
Investment analysts are actively revising their viewpoints on WBD shares. Needham & Company LLC maintained a “hold” rating, while Redburn Partners set a price target of $28.00. UBS Group raised its target from $10.00 to $20.00, categorizing the stock as “neutral.” Meanwhile, Bank of America and Raymond James Financial increased their price targets to $24.00 and $25.00, respectively, both issuing “buy” ratings.
Currently, the stock has a consensus rating of “Moderate Buy” from analysts, with an average target price of $21.92. The mixed reactions from analysts reflect the ongoing complexities within the media and entertainment landscape, emphasizing the need for strategic adjustments in response to shifting market dynamics.
As Warner Bros. Discovery navigates these challenges, it continues to be a focal point for both institutional investors and market analysts, reflecting broader trends in the media industry.
