5 Stocks to Buy According to Centiva Capital

4. Warner Bros. Discovery, Inc. (NASDAQ:WBD)

Centiva Capital’s Stake Value: $11,896,000
Percentage of Centiva Capital’s 13F Portfolio: 0.22%
Number of Hedge Fund Holders: N/A

Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a media company that was recently formed following the merger between Warner Media and Discovery. Warner Bros.

Discovery, Inc. (NASDAQ:WBD)’s was downgraded from ‘Outperform’ to ‘Market Perform’ on August 8 by Barrington analyst James Goss. In a research note to investors, Goss said that the downgrade resulted from delays in the distribution of the company’s revised strategic decisions and the imperfect blending of its two distinct programming offers.

On August 4, Warner Bros. Discovery, Inc. (NASDAQ:WBD) announced a loss of $1.50 per share in the second quarter of 2022. In the prior year’s quarter, the firm reported earnings per share of $1.01. In addition, the company reported $9.83 billion in revenue in its first quarter of 2022, reflecting 221% year-over-year growth.

Centiva Capital acquired a new position in Warner Bros. Discovery, Inc. (NASDAQ:WBD) during the first quarter, owning 476,400 shares worth $11.9 million. Among the hedge funds being tracked by Insider Monkey, Benjamin A. Smith’s Laurion Capital Management is the most significant shareholder of Warner Bros. Discovery, Inc. (NASDAQ:WBD), with a $338 million stake in the company.

In its Q1 2022 investor letter, Silver Ring Value Partners mentioned Warner Bros. Discovery, Inc. (NASDAQ:WBD). Here is what the fund said:

“Discovery completed the acquisition of the Warner Media business from AT&T in April, and the combined business is now named Warner Bros. Discovery, Inc. (NASDAQ:WBD). We are currently in the middle of an interesting technical event, following the spin-off special situation playbook.

The acquisition was structured as a spin-off of Warner Media, with AT&T shareholders receiving ~ 70% of the shares in the combined entity, or ~ 1.7B shares. Many of these shareholders owned AT&T for its phone business and its dividend. It appears that there has been elevated noneconomic selling as these shareholders exit regardless of price. On the other side, few if any investors want to buy the Warner Bros. Discovery, Inc. (NASDAQ:WBD) shares prior to this forced selling being over.” (Click here to read full text)