Warner Bros. Discovery Inc (NASDAQ: WBD)’s stock price has increased by 2.00 compared to its previous closing price of 7.99. However, the company has seen a -6.00% decrease in its stock price over the last five trading sessions. cnbc.com reported 2024-07-26 that It’s unclear if merger deregulation will jumpstart consolidation among larger media companies. In the last five years, every large media merger has led to tens of billions in lost value for shareholders.
Is It Worth Investing in Warner Bros. Discovery Inc (NASDAQ: WBD) Right Now?
The stock has a 36-month beta value of 1.48. Opinions on the stock are mixed, with 0 analysts rating it as a “buy,” 0 as “overweight,” 0 as “hold,” and 0 as “sell.”
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The public float for WBD is 2.22B, and at present, short sellers hold a 6.00% of that float. On July 26, 2024, the average trading volume of WBD was 30.06M shares.
WBD’s Market Performance
The stock of Warner Bros. Discovery Inc (WBD) has seen a -6.00% decrease in the past week, with a 12.41% rise in the past month, and a -1.69% fall in the past quarter. The volatility ratio for the week is 4.40%, and the volatility levels for the past 30 days are at 3.73% for WBD. The simple moving average for the past 20 days is 5.42% for WBD’s stock, with a -12.41% simple moving average for the past 200 days.
Analysts’ Opinion of WBD
Many brokerage firms have already submitted their reports for WBD stocks, with Macquarie repeating the rating for WBD by listing it as a “Neutral.” The predicted price for WBD in the upcoming period, according to Macquarie is $9 based on the research report published on July 25, 2024 of the current year 2024.
Evercore ISI, 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 $12. The rating they have provided for WBD stocks is “Outperform” according to the report published on July 16th, 2024.
Goldman gave a rating of “Neutral” to WBD, setting the target price at $8.50 in the report published on June 25th of the current year.
WBD Trading at 4.72% 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 -44.78% of loss for the given period.
Volatility was left at 3.73%, however, over the last 30 days, the volatility rate increased by 4.40%, as shares surge +10.00% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -5.55% lower at present.
During the last 5 trading sessions, WBD fell by -6.75%, which changed the moving average for the period of 200-days by -23.22% in comparison to the 20-day moving average, which settled at $7.77. In addition, Warner Bros. Discovery Inc saw -28.38% 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 Zeiler Gerhard, who purchase 100,000 shares at the price of $8.30 back on May 13 ’24. After this action, Zeiler Gerhard now owns 908,130 shares of Warner Bros. Discovery Inc, valued at $830,000 using the latest closing price.
ADVANCE/NEWHOUSE PARTNERSHIP, 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 ADVANCE/NEWHOUSE PARTNERSHIP 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:
- -0.02 for the present operating margin
- 0.31 for the gross margin
The net margin for Warner Bros. Discovery Inc stands at -0.07. The total capital return value is set at -0.01. Equity return is now at value -6.67, with -2.41 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 0.2. The debt to equity ratio resting at 0.96. The interest coverage ratio of the stock is -0.44.
Currently, EBITDA for the company is 7.38 billion with net debt to EBITDA at 2.59. When we switch over and look at the enterprise to sales, we see a ratio of 1.46. The receivables turnover for the company is 6.44for 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 0.82.
Conclusion
To sum up, Warner Bros. Discovery Inc (WBD) has seen a bad performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as 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.
