Traders Buy Large Volume of Put Options on Warner Bros. Discovery (NASDAQ:WBD)

Warner Bros. Discovery, Inc. (NASDAQ:WBD) was the target of some unusual options trading activity on Wednesday. Stock traders bought 238,087 put options on the stock. This is an increase of 255% compared to the average volume of 67,102 put options.

Warner Bros. Discovery Price Performance

Shares of NASDAQ WBD opened at $25.83 on Wednesday. The company has a debt-to-equity ratio of 0.92, a current ratio of 0.73 and a quick ratio of 0.73. The stock has a market capitalization of $64.76 billion, a price-to-earnings ratio of -36.90 and a beta of 1.54. The firm’s 50 day simple moving average is $26.80 and its 200-day simple moving average is $27.44. Warner Bros. Discovery has a 12 month low of $10.76 and a 12 month high of $30.00.

Warner Bros. Discovery (NASDAQ:WBD) last posted its earnings results on Wednesday, May 6th. The company reported ($1.17) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.10) by ($1.07). Warner Bros. Discovery had a negative net margin of 4.67% and a negative return on equity of 4.77%. The firm had revenue of $8.89 billion during the quarter, compared to analyst estimates of $8.89 billion. During the same quarter in the prior year, the firm earned ($0.18) earnings per share. The business’s revenue for the quarter was down 1.0% on a year-over-year basis. Analysts expect that Warner Bros. Discovery will post -1.07 EPS for the current year.

Analyst Ratings Changes

Several research analysts recently issued reports on the stock. Zacks Research raised shares of Warner Bros. Discovery from a “strong sell” rating to a “hold” rating in a report on Monday, June 1st. Guggenheim reaffirmed a “neutral” rating on shares of Warner Bros. Discovery in a report on Thursday, May 7th. Huber Research raised Warner Bros. Discovery from an “underweight” rating to an “overweight” rating in a research report on Monday, June 1st. KeyCorp reiterated an “overweight” rating on shares of Warner Bros. Discovery in a research note on Friday, April 24th. Finally, Weiss Ratings cut Warner Bros. Discovery from a “hold (c-)” rating to a “sell (d-)” rating in a report on Thursday, May 7th. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $27.04.

Warner Bros. Discovery News Summary

Here are the key news stories impacting Warner Bros. Discovery this week:

• Negative Sentiment: A judge granted a temporary restraining order that blocks the Paramount-WBD merger from closing for 14 days while the court reviews claims that the deal could harm competition. Paramount and Warner Bros. merger hit with temporary restraining order
• Negative Sentiment: The lawsuit from state attorneys general and the court pause raise the risk of a longer delay, or potentially a more difficult path to approval, for the roughly $110 billion transaction. Judge orders Paramount to temporarily pause Warner Bros acquisition
• Neutral Sentiment: Coverage ahead of WBD’s second-quarter 2026 earnings suggests investors are also waiting for financial results and management commentary for clues on operating trends and deal implications. Warner Bros. Discovery’s Q2 2026 earnings: What to expect
• Neutral Sentiment: Media reports on the broader sale process and merger timeline highlight how large and disruptive the deal could be for Hollywood, but they do not add new operational details for WBD itself. What to know about the landmark Warner Bros. Discovery sale

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Norges Bank acquired a new stake in shares of Warner Bros. Discovery during the 4th quarter valued at about $1,123,807,000. Duquesne Family Office LLC acquired a new position in Warner Bros. Discovery in the 2nd quarter worth about $74,916,000. Amundi boosted its position in Warner Bros. Discovery by 59.6% during the third quarter. Amundi now owns 15,523,538 shares of the company’s stock worth $296,189,000 after purchasing an additional 5,798,592 shares in the last quarter. Marshall Wace LLP purchased a new position in Warner Bros. Discovery during the third quarter worth approximately $100,135,000. Finally, Healthcare of Ontario Pension Plan Trust Fund grew its holdings in Warner Bros. Discovery by 509.5% in the fourth quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 5,981,814 shares of the company’s stock valued at $172,396,000 after purchasing an additional 5,000,437 shares during the period. Institutional investors and hedge funds own 59.95% of the company’s stock.

About Warner Bros. Discovery

Warner Bros. Discovery (NASDAQ: WBD) is a global media and entertainment company formed when WarnerMedia and Discovery, Inc combined their businesses in 2022. Headquartered in New York City, the company assembles a broad portfolio of film and television production, linear and cable networks, streaming services and consumer distribution operations. Its assets span well-known studio brands, premium scripted and unscripted programming, news and factual entertainment, and licensed franchise properties.

The company’s core activities include film and television production and distribution through units such as Warner Bros.