Gerhard Zeiler, International President at
Warner Bros Discovery (WBD), recently bought 100,000 shares. The buy increased his stake by 12%, and came to a total cost of $830,000.
This marks the first insider buy of 2024. Zeiler was a buyer last year, picking up 38,000 shares at a cost of $535,420. Another company director was a buyer late last year, and the company CFO bought 15,000 shares in mid-2023.
Overall, Warner Bros Discovery insiders own 9.2% of shares.
The media conglomerate has seen shares slide by one-third over the past year, and shares trade at a level last seen in 2008. Media companies have struggled amid high competition for streaming services.
WBD is currently unprofitable, although shares are arguably a value play, given that the company is valued at half its book value, which includes a number of massive intellectual properties.
Action to take: As with other media companies, there’s no sign of a meaningful move higher quite yet. WBD does not pay a dividend either. Interested investors should look for a clearer sign of the downtrend to end and a turn higher before buying.
For traders, the current trend is lower. The July $7.50 puts, last trading for about $0.30, could see high double-digit gains or better if the current downtrend continues.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.
