It is Poised to be a Bull Market for Warner Bros. Discovery Inc. (WBD)

Warner Bros. Discovery Inc. (NASDAQ: WBD) stock fell -3.87% on Tuesday to $11.69 against a previous-day closing price of $12.16. With 20.26 million shares changed hands, the volume of the stock remained heavier than its average volume of 18.25 million shares. During the session, the Entertainment company that operates in wider Communication Services sector, reached to the highest price of $12.24 whereas the lowest price it dropped to was $11.66. The 52-week range on WBD shows that it touched its highest point at $18.76 and its lowest point at $8.82 during that stretch. It currently has a 1-year price target of $20.70. Beta for the stock currently stands at 1.49.

Top 5 EV Tech Stocks to Buy for 2023

According a new report published by BloombergNEF on investment in the energy transition, annual spending on passenger EVs hit $388 billion in 2022, up 53% from the year before. Like we said, the boom is accelerating – and the time to buy EV-related tech stocks is now.

Click Here to Download the FREE Report.


Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of WBD was down-trending over the past week, with a drop of -3.79%, but this was down by -12.50% over a month. Three-month performance dropped to -24.19% while six-month performance rose 8.54%. The stock lost -34.10% in the past year, while it has gained 23.31% so far this year. A look at the trailing 12-month EPS for WBD yields -3.75 with Next year EPS estimates of 0.53. For the next quarter, that number is -0.31. This implies an EPS growth rate of -348.50% for this year and 203.90% for next year. EPS is expected to grow by 7.50% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -40.40%.

Float and Shares Shorts:

At present, 2.43 billion WBD shares are outstanding with a float of 1.87 billion shares on hand for trading. On Apr 27, 2023, short shares totaled 62.24 million, which was 2.55% higher than short shares on Mar 30, 2023. In addition to Mr. David M. Zaslav as the firm’s Pres, CEO & Director, Dr. Gunnar Wiedenfels serves as its Sr. EVP & CFO.

Institutional Ownership:

Through their ownership of 60.05% of WBD’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 9.16% of WBD, in contrast to 31.78% held by mutual funds. Shares owned by individuals account for 25.77%. As the largest shareholder in WBD with 8.38% of the stake, The Vanguard Group, Inc. holds 203,585,025 shares worth 203,585,025. A second-largest stockholder of WBD, BlackRock Fund Advisors, holds 113,399,491 shares, controlling over 4.67% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in WBD, holding 107,441,611 shares or 4.42% stake. With a 2.79% stake in WBD, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 67,818,052 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.12% of WBD stock, is the second-largest Mutual Fund holder. It holds 51,592,236 shares valued at 702.17 million. Invesco QQQ Trust holds 1.33% of the stake in WBD, owning 32,218,622 shares worth 438.5 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, WBD reported revenue of $9.83B and operating income of -$2.60B. The EBITDA in the recently reported quarter was $5.23B and diluted EPS was -$1.50.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for WBD since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With WBD analysts setting a high price target of $36.00 and a low target of $11.00, the average target price over the next 12 months is $20.18. Based on these targets, WBD could surge 207.96% to reach the target high and fall by -5.9% to reach the target low. Reaching the average price target will result in a growth of 72.63% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded WBD stock several times over the past three months with 16 Buys and 18 Sells. In these transactions, 1,844,163 shares were bought while 757,333 shares were sold. The number of buy transactions has increased to 37 while that of sell transactions has risen to 24 over the past year. The total number of shares bought during that period was 2,788,207 while 911,881 shares were sold.

Leave a Comment

Your email address will not be published. Required fields are marked *