Warner Bros. Discovery Inc. (NASDAQ: WBD) stock jumped 0.94% on Friday to $11.84 against a previous-day closing price of $11.73. With 30.31 million shares changed hands, the volume of the stock remained heavier than its average volume of 20.62 million shares. During the session, the Entertainment company that operates in wider Communication Services sector, reached to the highest price of $12.18 whereas the lowest price it dropped to was $11.69. The 52-week range on WBD shows that it touched its highest point at $16.34 and its lowest point at $8.82 during that stretch. It currently has a 1-year price target of $20.05. Beta for the stock currently stands at 1.52.
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 up-trending over the past week, with a rise of 4.59%, but this was down by -10.24% over a month. Three-month performance dropped to -9.82% while six-month performance fell -16.38%. The stock lost -6.85% in the past year, while it has gained 24.89% so far this year. A look at the trailing 12-month EPS for WBD yields -2.76 with Next year EPS estimates of 0.35. For the next quarter, that number is -0.02. This implies an EPS growth rate of -348.50% for this year and 136.10% 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, 2.44 billion WBD shares are outstanding with a float of 2.20 billion shares on hand for trading. On Aug 30, 2023, short shares totaled 91.88 million, which was 3.77% higher than short shares on Jul 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.
Through their ownership of 61.00% of WBD’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 9.12% of WBD, in contrast to 34.12% held by mutual funds. Shares owned by individuals account for 26.29%. As the largest shareholder in WBD with 9.80% of the stake, The Vanguard Group, Inc. holds 238,936,139 shares worth 238,936,139. A second-largest stockholder of WBD, SSgA Funds Management, Inc., holds 118,339,932 shares, controlling over 4.86% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in WBD, holding 108,334,661 shares or 4.45% stake. With a 2.80% stake in WBD, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 68,152,007 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.19% of WBD stock, is the second-largest Mutual Fund holder. It holds 53,378,845 shares valued at 701.4 million. Vanguard Mid Cap Index Fund holds 2.09% of the stake in WBD, owning 50,809,804 shares worth 667.64 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 Jun 29, 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.
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 $33.00 and a low target of $10.00, the average target price over the next 12 months is $19.26. Based on these targets, WBD could surge 178.72% to reach the target high and fall by -15.54% to reach the target low. Reaching the average price target will result in a growth of 62.67% 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 6 Buys and 5 Sells. In these transactions, 55,945 shares were bought while 119,165 shares were sold. The number of buy transactions has increased to 36 while that of sell transactions has risen to 27 over the past year. The total number of shares bought during that period was 2,105,622 while 988,578 shares were sold.