Warner Bros. Discovery, Inc. (NASDAQ:WBD) Sees Large Decline in Short Interest

Warner Bros. Discovery, Inc. (NASDAQ:WBD) was the target of a large decrease in short interest in August. As of August 31st, there was short interest totalling 114,380,000 shares, a decrease of 17.6% from the August 15th total of 138,800,000 shares. Currently, 5.2% of the company’s stock are sold short. Based on an average daily trading volume, of 31,110,000 shares, the days-to-cover ratio is presently 3.7 days.

Warner Bros. Discovery Stock Performance

NASDAQ WBD opened at $8.49 on Monday. The stock’s 50 day simple moving average is $7.75 and its 200-day simple moving average is $7.98. Warner Bros. Discovery has a 1-year low of $6.64 and a 1-year high of $12.70. The company has a debt-to-equity ratio of 1.06, a current ratio of 0.76 and a quick ratio of 0.76. The company has a market cap of $20.80 billion, a PE ratio of -6.85 and a beta of 1.48.

Warner Bros. Discovery (NASDAQ:WBD) last released its quarterly earnings data on Wednesday, August 7th. The company reported ($4.07) EPS for the quarter, missing analysts’ consensus estimates of ($0.18) by ($3.89). The business had revenue of $9.71 billion during the quarter, compared to analyst estimates of $10.07 billion. Warner Bros. Discovery had a negative net margin of 29.47% and a negative return on equity of 27.28%. The firm’s revenue was down 6.2% on a year-over-year basis. During the same quarter in the previous year, the company posted ($0.51) EPS. As a group, equities research analysts anticipate that Warner Bros. Discovery will post -4.17 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on WBD. Macquarie cut their price target on Warner Bros. Discovery from $9.00 to $8.00 and set a “neutral” rating on the stock in a report on Monday, August 12th. Barrington Research restated an “outperform” rating and issued a $12.00 price target on shares of Warner Bros. Discovery in a report on Tuesday, July 23rd. Deutsche Bank Aktiengesellschaft decreased their target price on shares of Warner Bros. Discovery from $16.00 to $15.00 and set a “buy” rating for the company in a research report on Thursday, August 8th. The Goldman Sachs Group reduced their target price on Warner Bros. Discovery from $8.50 to $7.50 and set a “neutral” rating on the stock in a research report on Thursday, August 8th. Finally, Moffett Nathanson decreased their price objective on shares of Warner Bros. Discovery from $10.00 to $9.00 and set a “neutral” rating for the company in a research report on Thursday, August 8th. One equities research analyst has rated the stock with a sell rating, twelve have issued a hold rating and nine have issued a buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $10.93.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Sanctuary Advisors LLC purchased a new position in shares of Warner Bros. Discovery during the second quarter worth $1,297,000. Cetera Investment Advisers boosted its holdings in Warner Bros. Discovery by 8.3% during the 2nd quarter. Cetera Investment Advisers now owns 540,002 shares of the company’s stock valued at $4,018,000 after acquiring an additional 41,457 shares during the period. Quarry LP grew its position in Warner Bros. Discovery by 2,185.1% in the 2nd quarter. Quarry LP now owns 6,307 shares of the company’s stock valued at $47,000 after acquiring an additional 6,031 shares in the last quarter. William B. Walkup & Associates Inc. purchased a new stake in Warner Bros. Discovery during the second quarter worth about $59,000. Finally, Creative Planning lifted its position in shares of Warner Bros. Discovery by 4.3% during the second quarter. Creative Planning now owns 313,570 shares of the company’s stock worth $2,333,000 after purchasing an additional 13,000 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, 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.