Discovery Communications Inc. (NASDAQ:DISCA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report 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.”
Other research analysts have also issued reports about the company. JPMorgan Chase & Co. reiterated a “hold” rating on shares of Discovery Communications in a research note on Saturday, July 9th. Jefferies Group restated a “hold” rating on shares of Discovery Communications in a research note on Thursday, August 11th. MKM Partners lowered their target price on Discovery Communications from $28.00 to $27.00 and set a “neutral” rating for the company in a research note on Monday, July 18th. Macquarie upgraded Discovery Communications from an “underperform” rating to a “neutral” rating and lowered their target price for the company from $28.76 to $27.00 in a research note on Wednesday, August 3rd. Finally, FBR & Co restated a “hold” rating on shares of Discovery Communications in a research note on Thursday, August 4th. Five investment analysts have rated the stock with a sell rating, eleven have assigned a hold rating and five have issued a buy rating to the stock. The stock currently has an average rating of “Hold” and a consensus target price of $30.15.
Discovery Communications (NASDAQ:DISCA) traded down 0.84% during mid-day trading on Tuesday, reaching $27.16. The company’s stock had a trading volume of 1,716,895 shares. The stock’s 50 day moving average is $25.76 and its 200 day moving average is $26.63. The company has a market cap of $11.36 billion, a price-to-earnings 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.
Discovery Communications (NASDAQ:DISCA) last released its quarterly earnings data on Tuesday, August 2nd. The company reported $0.56 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.54 by $0.02. Discovery Communications had a return on equity of 23.45% and a net margin of 18.06%. The firm earned $1.71 billion during the quarter, compared to analyst estimates of $1.71 billion. During the same period in the prior year, the company posted $0.49 earnings per share. The business’s revenue for the quarter was up 3.3% compared to the same quarter last year. Equities research analysts predict that Discovery Communications will post $1.97 EPS for the current year.
A number of large investors have recently made changes to their positions in the stock. Kentucky Retirement Systems purchased a new stake in shares of Discovery Communications during the second quarter worth about $323,000. Mason Street Advisors LLC purchased a new stake in shares of Discovery Communications during the second quarter worth about $511,000. Schwab Charles Investment Management Inc. raised its stake in shares of Discovery Communications by 4.5% in the second quarter. Schwab Charles Investment Management Inc. now owns 429,751 shares of the company’s stock worth $10,843,000 after buying an additional 18,632 shares in the last quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund raised its stake in shares of Discovery Communications by 2.3% in the second quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 33,980 shares of the company’s stock worth $857,000 after buying an additional 768 shares in the last quarter. Finally, Stifel Financial Corp raised its stake in shares of Discovery Communications by 34.9% in the second quarter. Stifel Financial Corp now owns 263,434 shares of the company’s stock worth $6,648,000 after buying an additional 68,168 shares in the last quarter. 40.59% of the stock is currently 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.
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