Discovery Communications (DISCA) Cut to “Sell” at ValuEngine

Discovery Communications (NASDAQ:DISCA) was downgraded by ValuEngine from a “hold” rating to a “sell” rating in a research note issued to investors on Monday, ValuEngine reports.

A number of other research firms also recently issued reports on DISCA. Zacks Investment Research downgraded Discovery Communications from a “buy” rating to a “hold” rating in a research report on Tuesday, February 5th. Barrington Research reissued a “buy” rating and set a $40.00 price target on shares of Discovery Communications in a research report on Tuesday, February 26th. Credit Suisse Group increased their price target on Discovery Communications from $40.00 to $41.00 and gave the stock an “outperform” rating in a research report on Wednesday, February 27th. TheStreet raised Discovery Communications from a “c” rating to a “b” rating in a research report on Tuesday, February 26th. Finally, BidaskClub downgraded Discovery Communications from a “strong-buy” rating to a “buy” rating in a research report on Thursday, March 14th. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating, ten have given a buy rating and one has issued a strong buy rating to the company. The company currently has an average rating of “Buy” and a consensus target price of $33.89.

Discovery Communications stock traded down $1.12 during mid-day trading on Monday, hitting $27.34. The company’s stock had a trading volume of 3,752,900 shares, compared to its average volume of 4,098,867. The company has a market capitalization of $14.91 billion, a PE ratio of 12.96, a price-to-earnings-growth ratio of 0.40 and a beta of 1.41. The company has a quick ratio of 1.16, a current ratio of 1.16 and a debt-to-equity ratio of 1.45. Discovery Communications has a one year low of $20.59 and a one year high of $34.89.

Discovery Communications (NASDAQ:DISCA) last announced its quarterly earnings data on Thursday, May 2nd. The company reported $0.87 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.79 by $0.08. The company had revenue of $2.71 billion for the quarter, compared to the consensus estimate of $2.72 billion. Discovery Communications had a return on equity of 20.10% and a net margin of 9.00%. Discovery Communications’s quarterly revenue was up 17.3% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.53 EPS. As a group, research analysts anticipate that Discovery Communications will post 3.67 earnings per share for the current year.

In related news, General Counsel Savalle Sims sold 16,623 shares of the company’s stock in a transaction on Monday, March 4th. The stock was sold at an average price of $28.57, for a total transaction of $474,919.11. Following the completion of the sale, the general counsel now directly owns 48,684 shares in the company, valued at approximately $1,390,901.88. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 4.43% of the company’s stock.

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Karp Capital Management Corp purchased a new stake in Discovery Communications in the fourth quarter valued at about $30,000. Smithfield Trust Co. purchased a new stake in Discovery Communications in the fourth quarter valued at about $47,000. Rational Advisors LLC raised its stake in Discovery Communications by 26.3% in the fourth quarter. Rational Advisors LLC now owns 2,018 shares of the company’s stock valued at $50,000 after buying an additional 420 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its stake in Discovery Communications by 96.9% in the first quarter. Northwestern Mutual Wealth Management Co. now owns 1,920 shares of the company’s stock valued at $52,000 after buying an additional 945 shares during the last quarter. Finally, Athena Capital Advisors LLC purchased a new stake in Discovery Communications in the fourth quarter valued at about $66,000. Hedge funds and other institutional investors own 34.25% of the company’s stock.

About Discovery Communications

Discovery, Inc operates as a media company worldwide. The company operates through two segments, U.S. Networks and International Networks. The company owns and operates various television networks under the Discovery Channel, TLC, Animal Planet, Investigation Discovery, Science Channel, MotorTrend, Food Network, HGTV, Travel Channel, TVN, DIY Network, Cooking Channel, Discovery Family Channel, American Heroes Channel, Destination America, Discovery Life, Discovery en Espanol, Discovery Familia, Great American Country, the Oprah Winfrey Network, Eurosport, Discovery Kids, DMAX, and Discovery Home & Health brands, as well as other regional television networks.

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Analyst Recommendations for Discovery Communications (NASDAQ:DISCA)

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