Discovery Communications (NASDAQ:DISCA) was upgraded by analysts at Pivotal Research from a “sell” rating to a “hold” rating in a note issued to investors on Thursday, MarketBeat.com reports. The firm currently has a $27.00 target price on the stock. Pivotal Research’s price objective points to a potential downside of 6.67% from the company’s previous close.
The analysts wrote, “We value Discovery using a DCF, with a near-term discount rate of 6.7%, a long-term discount rate of 13.5% and a 2.5% long-term growth rate.””
A number of other research analysts have also issued reports on DISCA. Barclays reaffirmed a “hold” rating on shares of Discovery Communications in a report on Tuesday. Imperial Capital lowered their target price on Discovery Communications from $37.00 to $31.00 and set an “inline” rating on the stock in a report on Tuesday. Zacks Investment Research raised Discovery Communications from a “hold” rating to a “buy” rating and set a $34.00 target price on the stock in a report on Tuesday, November 27th. Citigroup lifted their target price on Discovery Communications from $34.00 to $37.00 and gave the stock a “buy” rating in a report on Tuesday, November 20th. Finally, Cannonball Research lowered Discovery Communications to a “hold” rating and set a $33.00 target price on the stock. in a report on Monday, November 19th. Five equities research analysts have rated the stock with a hold rating, fourteen have given a buy rating and one has assigned a strong buy rating to the company. The stock has a consensus rating of “Buy” and a consensus target price of $32.79.
Discovery Communications (NASDAQ:DISCA) last posted its earnings results on Thursday, November 8th. The company reported $0.52 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.62 by ($0.10). The company had revenue of $2.59 billion during the quarter, compared to the consensus estimate of $2.60 billion. Discovery Communications had a negative net margin of 8.52% and a positive return on equity of 17.05%. The business’s quarterly revenue was up 57.0% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.43 earnings per share. As a group, analysts predict that Discovery Communications will post 2.67 EPS for the current year.
In related news, insider David Leavy sold 39,278 shares of Discovery Communications stock in a transaction dated Monday, November 12th. The stock was sold at an average price of $31.65, for a total value of $1,243,148.70. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Kenneth W. Lowe sold 58,000 shares of Discovery Communications stock in a transaction dated Tuesday, November 13th. The stock was sold at an average price of $28.88, for a total value of $1,675,040.00. Following the completion of the transaction, the director now directly owns 1,236,060 shares in the company, valued at approximately $35,697,412.80. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 281,031 shares of company stock worth $8,506,185. 6.73% of the stock is owned by corporate insiders.
A number of institutional investors and hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. increased its stake in Discovery Communications by 199.5% in the 3rd quarter. Vanguard Group Inc. now owns 50,745,309 shares of the company’s stock worth $1,541,300,000 after purchasing an additional 33,804,647 shares in the last quarter. FMR LLC increased its stake in Discovery Communications by 7.6% in the 3rd quarter. FMR LLC now owns 11,974,666 shares of the company’s stock worth $383,189,000 after purchasing an additional 841,302 shares in the last quarter. Dimensional Fund Advisors LP increased its stake in Discovery Communications by 14.4% in the 3rd quarter. Dimensional Fund Advisors LP now owns 2,180,315 shares of the company’s stock worth $69,767,000 after purchasing an additional 274,033 shares in the last quarter. Northern Trust Corp increased its stake in Discovery Communications by 8.1% in the 2nd quarter. Northern Trust Corp now owns 2,013,314 shares of the company’s stock worth $55,366,000 after purchasing an additional 150,291 shares in the last quarter. Finally, Strs Ohio increased its stake in Discovery Communications by 0.5% in the 2nd quarter. Strs Ohio now owns 1,685,726 shares of the company’s stock worth $46,357,000 after purchasing an additional 8,647 shares in the last quarter. 41.80% of the stock is currently owned by hedge funds and other institutional investors.
About Discovery Communications
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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