Discovery Communications (DISCA) Earns “Sell” Rating from Pivotal Research

Discovery Communications (NASDAQ:DISCA)‘s stock had its “sell” rating reissued by Pivotal Research in a note issued to investors on Friday. They currently have a $27.00 price objective on the stock. Pivotal Research’s price target indicates a potential downside of 20.12% from the stock’s current price.

The analysts wrote, “We continue to rate Discovery stock Sell. Discovery Communications reported tepid underlying growth trends for 3Q18 with company-wide pro forma revenues up +2%. Adjusted pro forma OIBDA was up +18%, aided by ongoing operating improvements, significant restructuring activities – whose costs have totaled $652mm year-to-date, not including $79mm of transaction and integration costs, well ahead of the company’s prior estimate of $600mm for the year – as well as the absence of Bundesliga costs because of the deconsolidation of the company’s German assets. Adjusted EPS came in at $0.52.””

Several other equities research analysts have also commented on the stock. Credit Suisse Group raised shares of Discovery Communications from a “neutral” rating to an “outperform” rating and upped their price target for the company from $30.00 to $40.00 in a research report on Wednesday, October 10th. Bank of America upped their price target on shares of Discovery Communications from $30.00 to $35.50 and gave the company a “buy” rating in a research report on Thursday, September 13th. Jefferies Financial Group raised shares of Discovery Communications from a “hold” rating to a “buy” rating and set a $20.00 target price for the company in a report on Tuesday, August 21st. JPMorgan Chase & Co. increased their target price on shares of Discovery Communications to $38.00 and gave the stock an “overweight” rating in a report on Wednesday, October 10th. They noted that the move was a valuation call. Finally, Zacks Investment Research raised shares of Discovery Communications from a “sell” rating to a “hold” rating in a report on Monday, September 24th. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating, thirteen have given a buy rating and one has issued a strong buy rating to the stock. The stock currently has an average rating of “Buy” and a consensus price target of $32.22.

NASDAQ DISCA opened at $33.80 on Friday. Discovery Communications has a 52 week low of $15.99 and a 52 week high of $34.89. The stock has a market cap of $17.39 billion, a PE ratio of 15.09, a price-to-earnings-growth ratio of 0.56 and a beta of 1.24. The company has a quick ratio of 1.45, a current ratio of 1.45 and a debt-to-equity ratio of 1.84.

Discovery Communications (NASDAQ:DISCA) last released its quarterly earnings results on Thursday, November 8th. The company reported $0.52 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.62 by ($0.10). Discovery Communications had a negative net margin of 8.28% and a positive return on equity of 17.68%. The business had revenue of $2.59 billion for the quarter, compared to analysts’ expectations of $2.60 billion. During the same period in the previous year, the company earned $0.43 EPS. Discovery Communications’s revenue for the quarter was up 57.0% compared to the same quarter last year. Sell-side analysts forecast that Discovery Communications will post 2.63 EPS for the current fiscal year.

In other Discovery Communications news, insider Bruce Campbell sold 31,462 shares of the company’s stock in a transaction that occurred on Monday, October 1st. The stock was sold at an average price of $30.00, for a total value of $943,860.00. Following the completion of the transaction, the insider now directly owns 72,256 shares in the company, valued at approximately $2,167,680. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Kenneth W. Lowe sold 183,621 shares of the company’s stock in a transaction that occurred on Wednesday, September 5th. The stock was sold at an average price of $25.58, for a total value of $4,697,025.18. Following the completion of the transaction, the director now owns 1,331,277 shares of the company’s stock, valued at $34,054,065.66. The disclosure for this sale can be found here. Insiders sold a total of 317,374 shares of company stock valued at $8,811,521 over the last three months. 6.73% of the stock is currently owned by insiders.

A number of hedge funds have recently bought and sold shares of DISCA. Janus Henderson Group PLC bought a new position in shares of Discovery Communications during the 3rd quarter valued at approximately $5,415,000. National Asset Management Inc. bought a new position in shares of Discovery Communications during the 3rd quarter valued at approximately $888,000. Morningstar Investment Services LLC boosted its position in shares of Discovery Communications by 16.0% during the 3rd quarter. Morningstar Investment Services LLC now owns 15,087 shares of the company’s stock valued at $483,000 after acquiring an additional 2,077 shares during the last quarter. Hartford Investment Management Co. boosted its position in shares of Discovery Communications by 35.6% during the 3rd quarter. Hartford Investment Management Co. now owns 24,991 shares of the company’s stock valued at $800,000 after acquiring an additional 6,566 shares during the last quarter. Finally, Norinchukin Bank The boosted its position in shares of Discovery Communications by 13.7% during the 3rd quarter. Norinchukin Bank The now owns 20,097 shares of the company’s stock valued at $643,000 after acquiring an additional 2,416 shares during the last quarter. Institutional investors and hedge funds own 37.19% of the company’s stock.

Discovery Communications Company Profile

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.

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