ClearBridge Investments LLC recently announced the acquisition of new stake in Discovery Inc. (NASDAQ:DISCA). The institutional investor has increased its shareholding in the Communication Services company by 28.44% to 18.09 million shares with purchase of 4.0 million shares. This fresh investment now brings its stake to 11.30% valued currently at $381.6 million. In addition, Fidelity Management & Research Co.. raised its holdings by 0.88 million to 9.41 million shares. And SSgA Funds Management, Inc. has lifted its position by 1.04% or 81759.0 shares – to 7.97 million shares.
With over 4.04 million Discovery Inc. (DISCA) shares trading Tuesday and a closing price of $21.42 on the day, the dollar volume was approximately $86.44 million. The shares have shown a negative weekly performance of -6.30% and its price on 09/01/20 lost nearly -2.92%. Currently, there are 508.00M common shares owned by the public and among those 480.49M shares have been available to trade.
An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 26 analysts who have offered their price forecasts for DISCA have a consensus price objective of $24.67. The analysts have set the share’s price value over the next 12 months at a high of $33.00 and a low of $17.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Discovery Inc. stock is 2.60 for the next 12 months. The average price target is 12.75% above its last price level and an upside to the estimated low will see the stock lose -26.0% over that period. But an upside of 35.09% will see the stock hit the forecast high price target while mean target price for the stock is $24.00.
Insiders at the company have transacted a total of 66 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 31 of these insider trades were purchases, accounting for 4,457,895 shares. Insider sales of the common stock occurred on 35 occasions, with total insider shares sold totaling 3,165,065 shares.
The top 3 mutual fund holders in Discovery Inc. are ClearBridge Aggressive Growth Fun, Vanguard Total Stock Market Index, and Columbia Seligman Communications. ClearBridge Aggressive Growth Fun owns 7.2 million shares of the company’s stock, all valued at over $151.82 million. Vanguard Total Stock Market Index bought 1385.0 shares to see its total holdings expand to 4.52 million shares valued at over $95.28 million and representing 2.82% of the shares outstanding. Columbia Seligman Communications now owns shares totaling to 2.48% of the shares outstanding.
Shares of Discovery Inc. (NASDAQ: DISCA) opened at $22.04, down -$0.03 from a prior closing price of $22.07. However, the script later closed the day at $21.42, down -2.92%. The company’s stock has a 5-day price change of -6.30% and -3.82% over the past three months. DISCA shares are trading -34.58% year to date (YTD), with the 12-month market performance down to -20.34% lower. It has a 12-month low price of $17.12 and touched a high of $33.65 over the same period. Currently, 4.04 million shares have been traded, compared to an average intraday trading volume of 4.28 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -3.33%, -0.26%, and -14.66% respectively.
Institutional ownership of Discovery Inc. (NASDAQ: DISCA) 508.00M shares outstanding. Mutual fund holders own 62.63%, while other institutional holders and individual stakeholders account for 64.62% and 5.20% respectively.
It has a market capitalization of $10.21B and a beta (3y monthly) value of 1.43. The stock’s trailing 12-month PE ratio is 10.83, while the earnings-per-share (ttm) stands at $1.98. The company has a PEG of 2.56 and a Quick Ratio of 1.80 with the debt-to-equity ratio at 1.55. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.70% over the week and 3.74% over the month.
Analysts forecast that Discovery Inc. (DISCA) will achieve an EPS of $0.64 for the current quarter, $0.65 for the next quarter and $3.32 for 2021. The lowest estimate earnings-per-share for the quarter is $0.31 while analysts give the company a high EPS estimate of $0.86. Comparatively, EPS for the current quarter was $0.87 a year ago. Earnings per share for the fiscal year are expected to increase by 236.60%, and 14.27% over the next financial year. EPS should shrink at an annualized rate of 4.22% over the next five years, compared to 11.70% over the past 5-year period.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 26 brokerage firm advisors rate Discovery Inc. (DISCA) as a “Moderate Buy” at a consensus score of 2.60. Specifically, 9 Wall Street analysts polled rate the stock as a buy, while 15 of the 26 advise that investors “hold,” and 0 rated it as a “Sell.”
Looking at the support for the DISCA, a number of firms have released research notes about the stock. Macquarie stated their Neutral rating for the stock in a research note on August 07, 2020, with the firm’s price target at $23. Goldman coverage for the Discovery Inc. (DISCA) stock in a research note released on July 13, 2020 offered a Neutral rating with a price target of $20. RBC Capital Mkts was of a view on April 28, 2020 that the stock is Outperform, while Evercore ISI gave the stock In-line rating on April 23, 2020, issuing a price target of $25. MKM Partners on their part issued Buy rating on March 31, 2020.