Warner Bros. Discovery (WBD) Stock Slides On Major Stake Sale

Shares of Warner Bros. Discovery WBD are trading lower in Tuesday morning trading following the disclosure of a stock sale by a major institutional investor.

What To Know: A/NPP Diversified Holdings, an affiliate of Advance/Newhouse Partnership, reported the sale of 100 million shares, reducing its stake in the media giant to 3.97%.

The block trade was executed at $10.97 per share, representing a roughly 4% discount to the stock’s previous closing price. The sale has injected negative sentiment, with WBD shares trading down around 4.5% to approximately $10.95 in early trading.

Following the transaction, A/NPP Diversified Holdings now holds about 98 million shares of Warner Bros. Discovery’s Series A common stock.

This development comes on the heels of Warner Bros. Discovery’s June announcement of a strategic plan to split into two separate public companies by mid-2026. The planned separation will create a “Streaming & Studios” unit, led by CEO David Zaslav, and a “Global Networks” division.

The move is intended to enhance competitiveness and unlock shareholder value by allowing each entity to focus on its core strengths.

Analyst Ratings: Separately, Wall Street analysts have remained largely optimistic on Warner Bros. Discovery’s prospects despite Tuesday’s stock pressure.

Earlier Tuesday, B of A Securities maintained its “Buy” rating and increased its price target for the company from $14 to $16 per share, implying a significant 46.32% upside from current levels.

This follows positive commentary in June from Guggenheim, which reiterated its “Buy” rating, and Barrington Research, which maintained its “Outperform” rating and a $16 price target. In a more neutral stance, Needham reiterated its “Hold” rating on the stock in mid-June.

According to data from Benzinga Pro, WBD has a 52-week high of $12.70 and a 52-week low of $6.64.

Read Also: Apple’s ‘F1’ Movie Soars At Box Office, Could Outgross Tech Giant’s Previous Theatrical Films Combined

How To Buy WBD Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Warner Bros. Discovery’s case, it is in the Communication Services sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

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