Keep an eye on beaten-down shares of Warner Bros. Discovery (SYM: WBD).
After a miserable pullback from its December 2023 high, WBD’s President of International picked up $830,000 worth of shares on May 13 at $8.30 each.
“We are in our open window and Gerhard wanted to increase his stake,” Warner Bros. said in an emailed statement to Barron’s. “He thinks the stock is undervalued and believes we have a real opportunity to drive shareholder value.”
Helping, analysts at KeyBanc Capital Markets just upgraded the WBD stock to an overweight rating, with a price target of $11.
As noted by the firm, per Seeking Alpha:
In addition to the fact that earnings estimates have likely hit a bottom, a resolution to the NBA contract (whichever way it goes) should be a “positive,” analyst Brandon Nispel said. Lastly, profitability for the company’s direct-to-consumer unit, as well as subscriber growth and average revenue per user, are all likely to improve from here.
“We think the stock is washed out and likely ready for a short-term rally on these factors.”
