Discovery Communications Inc. (DISCA) Receives Average Rating of “Buy” from Analysts

Shares of Discovery Communications Inc. (NASDAQ:DISCA) have been given a consensus recommendation of “Buy” by the twenty-one ratings firms that are presently covering the firm, Marketbeat reports. One analyst has rated the stock with a sell rating, five have assigned a hold rating, fourteen have issued a buy rating and one has given a strong buy rating to the company. The average twelve-month price target among analysts that have issued a report on the stock in the last year is $32.72.

Several brokerages have recently weighed in on DISCA. Pivotal Research restated a “sell” rating and issued a $27.00 price objective (up previously from $26.00) on shares of Discovery Communications in a report on Friday, November 9th. MKM Partners upped their target price on Discovery Communications to $40.00 and gave the stock a “buy” rating in a research report on Monday, November 5th. Zacks Investment Research raised Discovery Communications from a “hold” rating to a “buy” rating and set a $37.00 target price on the stock in a research report on Tuesday, November 13th. JPMorgan Chase & Co. upped their price target on Discovery Communications to $38.00 and gave the stock an “overweight” rating in a research note on Wednesday, October 10th. They noted that the move was a valuation call. Finally, Credit Suisse Group upgraded Discovery Communications from a “neutral” rating to an “outperform” rating and increased their target price for the company from $30.00 to $40.00 in a research note on Wednesday, October 10th.

In related news, insider David Leavy sold 39,278 shares of the firm’s stock in a transaction dated Monday, November 12th. The shares were sold at an average price of $31.65, for a total value of $1,243,148.70. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO Gunnar Wiedenfels sold 50,000 shares of the firm’s stock in a transaction dated Monday, November 12th. The shares were sold at an average price of $29.47, for a total transaction of $1,473,500.00. Following the completion of the transaction, the chief financial officer now directly owns 10,000 shares in the company, valued at approximately $294,700. The disclosure for this sale can be found here. Insiders have sold 147,278 shares of company stock valued at $4,391,689 over the last quarter. Company insiders own 6.73% of the company’s stock.

Several hedge funds have recently modified their holdings of DISCA. Cambridge Investment Research Advisors Inc. bought a new position in Discovery Communications in the 2nd quarter valued at $260,000. Oregon Public Employees Retirement Fund increased its position in shares of Discovery Communications by 56.1% in the second quarter. Oregon Public Employees Retirement Fund now owns 68,464 shares of the company’s stock valued at $1,883,000 after acquiring an additional 24,608 shares during the period. Sterling Capital Management LLC increased its position in shares of Discovery Communications by 103.1% in the second quarter. Sterling Capital Management LLC now owns 111,895 shares of the company’s stock valued at $3,077,000 after acquiring an additional 56,789 shares during the period. CapWealth Advisors LLC purchased a new position in shares of Discovery Communications in the second quarter valued at about $6,423,000. Finally, California Public Employees Retirement System increased its position in shares of Discovery Communications by 26.4% during the second quarter. California Public Employees Retirement System now owns 359,647 shares of the company’s stock valued at $9,890,000 after buying an additional 75,219 shares during the period. Institutional investors own 35.30% of the company’s stock.

NASDAQ DISCA opened at $27.12 on Friday. The stock has a market capitalization of $14.28 billion, a PE ratio of 12.11, a PEG ratio of 0.29 and a beta of 1.35. Discovery Communications has a 1-year low of $20.59 and a 1-year high of $34.89. The company has a current ratio of 1.01, a quick ratio of 1.01 and a debt-to-equity ratio of 1.61.

Discovery Communications (NASDAQ:DISCA) last issued its quarterly earnings results on Thursday, November 8th. The company reported $0.52 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.62 by ($0.10). The firm had revenue of $2.59 billion during the quarter, compared to the consensus estimate of $2.60 billion. Discovery Communications had a negative net margin of 8.52% and a positive return on equity of 17.05%. Discovery Communications’s revenue was up 57.0% compared to the same quarter last year. During the same quarter last year, the firm posted $0.43 earnings per share. Sell-side analysts expect that Discovery Communications will post 2.67 EPS for the current fiscal year.

About Discovery Communications

Discovery, Inc operates as a media company worldwide. The company operates through U.S. Networks, International Networks, and Education and Other segments. It owns and operates various television networks under the Discovery Channel, TLC, Animal Planet, Investigation Discovery, Science Channel, Velocity, Discovery Family Channel, Destination America, American Heroes Channel, Discovery Life, The Oprah Winfrey Network, Eurosport, Discovery Kids, DMAX, and Discovery Home & Health brands, as well as other regional television networks.

Further Reading: Cost of Capital Explained

Analyst Recommendations for Discovery Communications (NASDAQ:DISCA)

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