The stock price of Warner Bros. Discovery Inc (NASDAQ: WBD) has plunged by -0.13 when compared to previous closing price of 7.97, but the company has seen a -2.33% decline in its stock price over the last five trading sessions. Deadline reported 2024-05-06 that Warner Bros. Discovery chief David Zaslav largely evaded questions about NBA talks and Paramount Global’s potential as a WBD merger partner, but he did weigh in on the hot topic of executive pay. “All CEOs need to be paid with alignment with shareholders,” he declared.
Is It Worth Investing in Warner Bros. Discovery Inc (NASDAQ: WBD) Right Now?
The 36-month beta value for WBD is at 1.52. Analysts have varying views on the stock, with 0 analysts rating it as a “buy,” 0 rating it as “overweight,” 0 as “hold,” and 0 as “sell.”
The public float for WBD is 2.22B, and currently, shorts hold a 5.13% of that float. The average trading volume for WBD on May 07, 2024 was 30.17M shares.
WBD’s Market Performance
WBD stock saw a decrease of -2.33% in the past week, with a monthly decline of -4.33% and a quarterly a decrease of -20.95%. The volatility ratio for the week is 5.68%, and the volatility levels for the last 30 days are 3.53% for Warner Bros. Discovery Inc (WBD). The simple moving average for the past 20 days is -3.27% for WBD’s stock, with a -24.45% simple moving average for the past 200 days.
Analysts’ Opinion of WBD
Many brokerage firms have already submitted their reports for WBD stocks, with Wolfe Research repeating the rating for WBD by listing it as a “Underperform.” The predicted price for WBD in the upcoming period, according to Wolfe Research is $7 based on the research report published on April 23, 2024 of the current year 2024.
Rosenblatt, on the other hand, stated in their research note that they expect to see WBD reach a price target of $10, previously predicting the price at $7. The rating they have provided for WBD stocks is “Neutral” according to the report published on March 21st, 2024.
Wells Fargo gave a rating of “Equal Weight” to WBD, setting the target price at $12 in the report published on January 29th of the current year.
WBD Trading at -5.79% from the 50-Day Moving Average
After a stumble in the market that brought WBD to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -46.07% of loss for the given period.
Volatility was left at 3.53%, however, over the last 30 days, the volatility rate increased by 5.68%, as shares sank -6.57% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -7.55% lower at present.
During the last 5 trading sessions, WBD fell by -2.33%, which changed the moving average for the period of 200-days by -39.28% in comparison to the 20-day moving average, which settled at $8.20. In addition, Warner Bros. Discovery Inc saw -30.05% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at WBD starting from ADVANCE/NEWHOUSE PARTNERSHIP, who purchase 10,000,000 shares at the price of $12.49 back on Dec 14 ’23. After this action, ADVANCE/NEWHOUSE PARTNERSHIP now owns 14,158,459 shares of Warner Bros. Discovery Inc, valued at $124,900,000 using the latest closing price.
Newhouse Steven O, the Director of Warner Bros. Discovery Inc, purchase 10,000,000 shares at $12.49 during a trade that took place back on Dec 14 ’23, which means that Newhouse Steven O is holding 14,158,459 shares at $124,900,000 based on the most recent closing price.
Stock Fundamentals for WBD
Current profitability levels for the company are sitting at:
- -0.03 for the present operating margin
- 0.36 for the gross margin
The net margin for Warner Bros. Discovery Inc stands at -0.08. The total capital return value is set at -0.01. Equity return is now at value -6.77, with -2.43 for asset returns.
Based on Warner Bros. Discovery Inc (WBD), the company’s capital structure generated 0.49 points at debt to capital in total, while cash flow to debt ratio is standing at 0.17. The debt to equity ratio resting at 0.97. The interest coverage ratio of the stock is -0.56.
Currently, EBITDA for the company is 7.38 billion with net debt to EBITDA at 2.18. When we switch over and look at the enterprise to sales, we see a ratio of 1.51. The receivables turnover for the company is 6.83for trailing twelve months and the total asset turnover is 0.34. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.93.
Conclusion
In conclusion, Warner Bros. Discovery Inc (WBD) has had a bad performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
