Warner Bros. Discovery (NASDAQ: WBD) Stock Analysis: Analysts Weigh In on Future Growth Prospects
Warner Bros. Discovery, Inc. (NASDAQ: WBD) has recently drawn increased attention from analysts and investors alike. With various brokerage firms revising their ratings and price targets, WBD has positioned itself as a stock to watch in 2025. As the company continues to navigate industry challenges and capitalize on content-driven growth strategies, analysts have issued their latest earnings projections and target prices.
Analyst Ratings and Projections
On March 5th, Barrington Research provided an updated forecast on WBD, predicting that the company will post a fiscal year 2027 earnings per share (EPS) of ($0.05). Despite the negative EPS projection, Barrington Research maintained an “Outperform” rating on the stock with a price target of $16.00, indicating a potential upside from current levels.
Other analysts have also issued updates on WBD’s stock performance:
- Macquarie raised its price target from $8.00 to $9.00 and maintained a “Neutral” rating.
- Barclays increased its price target from $10.00 to $12.00 with an “Equal Weight” rating.
- Raymond James boosted its price objective from $11.00 to $12.00, giving it an “Outperform” rating.
- KeyCorp increased its target from $11.00 to $14.00 and maintained an “Overweight” rating.
- Moffett Nathanson upgraded WBD from “Neutral” to “Buy,” raising its price target from $9.00 to $13.00.
Currently, MarketBeat data shows that ten analysts have a “Hold” rating on WBD, while eleven have issued a “Buy” rating, resulting in a consensus rating of “Moderate Buy” with an average price target of $11.91.
Stock Performance and Financial Metrics
On Friday, WBD stock saw an increase of $0.37, reaching $11.07 per share. The stock has witnessed strong trading activity, with over 49.4 million shares exchanged, well above its 30.1 million average trading volume. Notable financial metrics include:
- 52-Week Range: $6.64 – $12.70
- Market Capitalization: $27.16 billion
- Price-to-Earnings (P/E) Ratio: -2.42
- Debt-to-Equity Ratio: 1.03
- Quick Ratio: 0.80
- Current Ratio: 0.80
While WBD reported a Q4 2024 revenue of $10.03 billion, it fell short of analysts’ expectations of $10.16 billion. The company’s net margin was recorded at -28.34%, with a negative return on equity of 27.56%, highlighting ongoing financial challenges.
Institutional Investments and Insider Activity
Institutional investors have shown a growing interest in WBD, as hedge funds have made significant moves:
- Norges Bank acquired a new stake worth $362 million.
- Contrarius Group Holdings Ltd invested approximately $169 million.
- FMR LLC increased its stake by 478.5%, now holding $150 million in shares.
- Slate Path Capital LP raised its investment by 36.6%, bringing its total to $251 million.
- Sachem Head Capital Management LP entered a new position worth $64.8 million.
In insider trading activity, Savalle Sims, a company executive, sold 169,436 shares at an average price of $12.36, reducing their stake by 22.04%. Meanwhile, Director Piazza Samuel A. Jr. Di purchased 17,346 shares at an average price of $11.41, increasing their holdings by 12.17%.
