Discovery Communications’ (DISCA) “Sell” Rating Reaffirmed at Pivotal Research

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Pivotal Research reiterated their sell rating on shares of Discovery Communications (NASDAQ:DISCA) in a research report released on Friday morning, MarketBeat Ratings reports. They currently have a $27.00 target price on the stock, up from their previous target price of $26.00.

“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.”,” the firm’s analyst wrote.

Other analysts also recently issued research reports about the company. Jefferies Financial Group upgraded Discovery Communications from a hold rating to a buy rating and set a $20.00 price objective for the company in a research report on Tuesday, August 21st. Royal Bank of Canada restated a buy rating and set a $30.00 target price on shares of Discovery Communications in a report on Wednesday, August 8th. Barrington Research restated a buy rating and set a $30.00 target price on shares of Discovery Communications in a report on Tuesday, August 7th. Citigroup upped their target price on Discovery Communications from $30.00 to $32.00 and gave the company a buy rating in a report on Wednesday, August 15th. Finally, BidaskClub downgraded Discovery Communications from a strong-buy rating to a buy rating in a report on Wednesday, July 18th. One research analyst has rated the stock with a sell rating, four have given a hold rating, thirteen have assigned a buy rating and one has issued a strong buy rating to the company. Discovery Communications has a consensus rating of Buy and an average target price of $32.22.

DISCA stock traded down $0.82 during midday trading on Friday, hitting $32.98. The company had a trading volume of 4,345,702 shares, compared to its average volume of 4,517,158. The company has a debt-to-equity ratio of 1.84, a quick ratio of 1.45 and a current ratio of 1.45. Discovery Communications has a 52 week low of $15.99 and a 52 week high of $34.89. The company has a market capitalization of $17.28 billion, a P/E ratio of 15.83, a PEG ratio of 0.56 and a beta of 1.24.

Discovery Communications (NASDAQ:DISCA) last announced its quarterly earnings data on Thursday, November 8th. The company reported $0.52 earnings per share 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 company had revenue of $2.59 billion during the quarter, compared to the consensus estimate of $2.60 billion. During the same quarter in the previous year, the firm posted $0.43 EPS. The business’s revenue for the quarter was up 57.0% compared to the same quarter last year. As a group, equities analysts predict that Discovery Communications will post 2.63 earnings per share for the current year.

In related news, Director Kenneth W. Lowe sold 183,621 shares of the company’s stock in a transaction 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 sale, the director now directly owns 1,331,277 shares of the company’s stock, valued at $34,054,065.66. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, insider Bruce Campbell sold 31,462 shares of the company’s stock in a transaction 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 sale, the insider now directly owns 72,256 shares in the company, valued at $2,167,680. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 317,374 shares of company stock worth $8,811,521. 6.73% of the stock is owned by insiders.

A number of hedge funds have recently modified their holdings of the stock. Truvestments Capital LLC purchased a new stake in shares of Discovery Communications in the third quarter worth $122,000. Dupont Capital Management Corp grew its stake in shares of Discovery Communications by 108.8% in the second quarter. Dupont Capital Management Corp now owns 6,010 shares of the company’s stock worth $165,000 after acquiring an additional 3,132 shares during the last quarter. FNY Investment Advisers LLC purchased a new stake in shares of Discovery Communications in the third quarter worth $172,000. Chicago Equity Partners LLC purchased a new stake in shares of Discovery Communications in the third quarter worth $200,000. Finally, Engineers Gate Manager LP purchased a new stake in shares of Discovery Communications in the third quarter worth $202,000. 37.19% of the stock is currently owned by 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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