Stock Traders Buy Large Volume of Discovery Communications Call Options (NASDAQ:DISCA)

Discovery Communications Inc. (NASDAQ:DISCA) saw some unusual options trading on Wednesday. Stock investors purchased 24,942 call options on the stock. This represents an increase of 1,887% compared to the typical volume of 1,255 call options.

A number of equities research analysts have issued reports on DISCA shares. BidaskClub lowered Discovery Communications from a “strong-buy” rating to a “buy” rating in a research report on Wednesday, July 18th. Zacks Investment Research lowered Discovery Communications from a “hold” rating to a “sell” rating in a research report on Wednesday, July 18th. ValuEngine downgraded Discovery Communications from a “sell” rating to a “strong sell” rating in a report on Thursday, July 19th. Pivotal Research reiterated a “hold” rating and issued a $26.00 price objective on shares of Discovery Communications in a report on Tuesday, August 7th. Finally, Barrington Research reiterated a “buy” rating and issued a $30.00 price objective on shares of Discovery Communications in a report on Tuesday, August 7th. 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 assigned a strong buy rating to the company’s stock. The stock has an average rating of “Buy” and a consensus price target of $32.22.

In related news, Director Kenneth W. Lowe sold 183,621 shares of the stock in a transaction dated Wednesday, September 5th. The stock was sold at an average price of $25.58, for a total transaction of $4,697,025.18. Following the transaction, the director now owns 1,331,277 shares of the company’s stock, valued at approximately $34,054,065.66. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Kurt Wehner sold 7,233 shares of the stock in a transaction dated Wednesday, September 12th. The stock was sold at an average price of $30.04, for a total value of $217,279.32. Following the transaction, the insider now directly owns 18,844 shares in the company, valued at approximately $566,073.76. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 317,374 shares of company stock valued at $8,811,521. 6.73% of the stock is owned by company insiders.

Several hedge funds have recently made changes to their positions in DISCA. California Public Employees Retirement System grew its stake in shares of Discovery Communications by 4.2% in the 1st quarter. California Public Employees Retirement System now owns 284,428 shares of the company’s stock valued at $6,095,000 after purchasing an additional 11,469 shares during the last quarter. Dimensional Fund Advisors LP grew its stake in shares of Discovery Communications by 2.9% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,895,201 shares of the company’s stock valued at $40,614,000 after purchasing an additional 54,146 shares during the last quarter. Russell Investments Group Ltd. grew its stake in shares of Discovery Communications by 3.8% in the 1st quarter. Russell Investments Group Ltd. now owns 89,615 shares of the company’s stock valued at $1,925,000 after purchasing an additional 3,301 shares during the last quarter. Nomura Asset Management Co. Ltd. grew its stake in shares of Discovery Communications by 32.1% in the 1st quarter. Nomura Asset Management Co. Ltd. now owns 23,210 shares of the company’s stock valued at $497,000 after purchasing an additional 5,642 shares during the last quarter. Finally, Baird Financial Group Inc. grew its stake in shares of Discovery Communications by 51.7% in the 1st quarter. Baird Financial Group Inc. now owns 38,269 shares of the company’s stock valued at $820,000 after purchasing an additional 13,039 shares during the last quarter. Institutional investors own 37.19% of the company’s stock.

NASDAQ:DISCA traded down $0.82 during mid-day trading on Friday, reaching $32.98. 4,345,702 shares of the stock were exchanged, compared to its average volume of 4,517,158. The company has a market capitalization of $17.28 billion, a PE ratio of 15.83, a P/E/G 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 has a 1 year low of $15.99 and a 1 year high of $34.89.

Discovery Communications (NASDAQ:DISCA) last released its quarterly 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). Discovery Communications had a positive return on equity of 17.68% and a negative net margin of 8.28%. The firm had revenue of $2.59 billion for the quarter, compared to analysts’ expectations of $2.60 billion. During the same quarter in the prior year, the business earned $0.43 EPS. The company’s quarterly revenue was up 57.0% compared to the same quarter last year. As a group, sell-side analysts anticipate that Discovery Communications will post 2.63 EPS for the current fiscal year.

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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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