Discovery Communications Inc. (NASDAQ:DISCA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.
According to Zacks, “Discovery Communications’ bottom-line continues to be adversely impacted by adverse foreign currency movements which also has a negative impact on its international segment revenues. Additionally, concerns related to advertising revenues remain as these largely depend on viewer ratings. In fact, advertising revenues declined in the second quarter. The company’s top line is also threatened by lack of business diversification and customer concentration in U.S. Loss of the company’s key distributors stands to have a significant negative impact on the company. Although, we are positive on Discovery's decision to renew its distribution partnership with AT&T, it remains to be seen if the company can overcome challenges and grow its top-line.”
Several other research firms have also commented on DISCA. Loop Capital reissued a “buy” rating and issued a $31.00 price target on shares of Discovery Communications in a research report on Saturday, September 3rd. Moffett Nathanson lowered Discovery Communications from a “neutral” rating to a “sell” rating and reduced their target price for the company from $31.00 to $21.00 in a research report on Tuesday, September 27th. MKM Partners upped their target price on Discovery Communications from $27.00 to $29.00 and gave the company a “neutral” rating in a research report on Wednesday, August 3rd. Barrington Research lowered Discovery Communications from an “outperform” rating to a “market perform” rating in a research report on Thursday, September 29th. Finally, Jefferies Group reaffirmed a “hold” rating on shares of Discovery Communications in a research report on Monday, September 12th. Five investment analysts have rated the stock with a sell rating, eleven have given a hold rating and five have issued a buy rating to the stock. The stock presently has a consensus rating of “Hold” and an average target price of $30.15.
Discovery Communications (NASDAQ:DISCA) opened at 27.17 on Tuesday. The stock has a market capitalization of $11.36 billion, a PE ratio of 14.77 and a beta of 1.59. Discovery Communications has a 12 month low of $23.66 and a 12 month high of $31.80. The firm has a 50-day moving average price of $25.86 and a 200 day moving average price of $26.62.
Discovery Communications (NASDAQ:DISCA) last issued its earnings results on Tuesday, August 2nd. The company reported $0.56 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.54 by $0.02. The business earned $1.71 billion during the quarter, compared to analyst estimates of $1.71 billion. Discovery Communications had a return on equity of 23.45% and a net margin of 18.06%. Discovery Communications’s revenue was up 3.3% on a year-over-year basis. During the same period in the previous year, the company posted $0.49 EPS. Equities analysts anticipate that Discovery Communications will post $1.97 earnings per share for the current year.
Several institutional investors have recently made changes to their positions in DISCA. Wellington Management Group LLP boosted its position in shares of Discovery Communications by 91.5% in the first quarter. Wellington Management Group LLP now owns 1,062,291 shares of the company’s stock worth $30,413,000 after buying an additional 507,570 shares during the last quarter. Geode Capital Management LLC boosted its position in shares of Discovery Communications by 2.3% in the first quarter. Geode Capital Management LLC now owns 1,470,612 shares of the company’s stock worth $42,045,000 after buying an additional 33,537 shares during the last quarter. Riverhead Capital Management LLC boosted its position in shares of Discovery Communications by 90.8% in the first quarter. Riverhead Capital Management LLC now owns 360,582 shares of the company’s stock worth $10,323,000 after buying an additional 171,549 shares during the last quarter. UBS Asset Management Americas Inc. boosted its position in shares of Discovery Communications by 49.3% in the first quarter. UBS Asset Management Americas Inc. now owns 796,105 shares of the company’s stock worth $22,793,000 after buying an additional 262,759 shares during the last quarter. Finally, State Street Corp boosted its position in shares of Discovery Communications by 0.5% in the first quarter. State Street Corp now owns 6,017,612 shares of the company’s stock worth $172,283,000 after buying an additional 30,462 shares during the last quarter. 40.59% of the stock is owned by institutional investors and hedge funds.
Discovery Communications Company Profile
Discovery Communications, Inc, (Discovery) is a global media company. The Company provides content across multiple distribution platforms, including pay-television (pay-TV), free-to-air and broadcast television, Websites, digital distribution arrangements and content licensing agreements. Its segments are U.S.