Is Discovery Communications Inc.’s Fuel For Real? The Stock Was Bought By Option Traders


 Is Discovery Communications Inc.'s Fuel For Real? The Stock Was Bought By Option Traders

In today’s session Discovery Communications Inc. (DISCA) registered an unusually high (2,008) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the October, 2016 call, expecting serious DISCA increase. With 2,008 contracts traded and 54194 open interest for the Oct, 16 contract, it seems this is a quite bullish bet. The option with symbol: DISCA161021C00027500 closed last at: $0.45 or 43.8% down. About 741,660 shares traded hands. Discovery Communications Inc. (NASDAQ:DISCA) has declined 0.52% since March 8, 2016 and is downtrending. It has underperformed by 9.83% the S&P500.

Analysts await Discovery Communications Inc. (NASDAQ:DISCA) to report earnings on November, 1. They expect $0.44 earnings per share, down 6.38% or $0.03 from last year’s $0.47 per share. DISCA’s profit will be $170.95 million for 15.14 P/E if the $0.44 EPS becomes a reality. After $0.71 actual earnings per share reported by Discovery Communications Inc. for the previous quarter, Wall Street now forecasts -38.03% negative EPS growth.

Discovery Communications Inc. (NASDAQ:DISCA) Ratings Coverage

Out of 18 analysts covering Discovery Communications (NASDAQ:DISCA), 3 rate it a “Buy”, 6 “Sell”, while 9 “Hold”. This means 17% are positive. $40 is the highest target while $23 is the lowest. The $28.47 average target is 6.87% above today’s ($26.64) stock price. Discovery Communications has been the topic of 43 analyst reports since August 3, 2015 according to StockzIntelligence Inc. Barclays Capital maintained the shares of DISCA in a report on Friday, August 14 with “Overweight” rating. The stock of Discovery Communications Inc. (NASDAQ:DISCA) earned “Sector Perform” rating by RBC Capital Markets on Monday, November 9. The firm has “Sector Perform” rating by RBC Capital Markets given on Wednesday, September 30. The firm earned “Mkt Perform” rating on Friday, February 19 by FBR Capital. The rating was downgraded by Topeka Capital Markets on Monday, April 25 to “Hold”. The stock of Discovery Communications Inc. (NASDAQ:DISCA) earned “Underperform” rating by Macquarie Research on Tuesday, April 26. Pivotal Research upgraded Discovery Communications Inc. (NASDAQ:DISCA) on Thursday, August 6 to “Buy” rating. On Wednesday, September 30 the stock rating was maintained by Topeka Capital Markets with “Buy”. The company was downgraded on Wednesday, May 18 by Citigroup. The company was downgraded on Tuesday, June 7 by Bernstein.

According to Zacks Investment Research, “DISCOVERY COMMUNICATIONS INC., formerly Discovery Holding Company, is a holding company that conducts operations through its two wholly owned operating subsidiaries, Ascent Media Group, LLC and Ascent Media CANS, LLC, and throught its 66.66% owned equity affiliate Discovery Communications Holding, LLC. Ascent Media provides creative, media management and network services to the media and entertainment industries. Its client base includes motion picture studios, independent producers, broadcast networks, cable programming networks, advertising agencies, media producers, independent owners of television and film libraries, and media distribution channels. Discovery is a global media and entertainment company that offers original and purchased programming in the United States and over 170 other countries with over 100 television networks.”

Insitutional Activity: The institutional sentiment increased to 0.83 in 2016 Q2. Its up 0.05, from 0.78 in 2016Q1. The ratio is positive, as 46 funds sold all Discovery Communications Inc. shares owned while 198 reduced positions. 62 funds bought stakes while 140 increased positions. They now own 221.89 million shares or 10.95% less from 249.17 million shares in 2016Q1.
Mercer Advisers Incorporated last reported 0.01% of its portfolio in the stock. Lafayette Investments has 2.01% invested in the company for 195,705 shares. The Missouri-based Monetary Management Grp Inc has invested 0.03% in Discovery Communications Inc. (NASDAQ:DISCA). Reinhart Partners holds 852,810 shares or 2.15% of its portfolio. Century accumulated 0% or 40,140 shares. Sequoia Fincl Advsr Ltd Liability Company holds 0.07% or 9,961 shares in its portfolio. Regions Fincl Corporation has 9,829 shares for 0% of their US portfolio. The California-based Tcw Grp Incorporated has invested 0% in Discovery Communications Inc. (NASDAQ:DISCA). Raymond James & Assoc has 89,192 shares for 0.01% of their US portfolio. Fund Mngmt last reported 0.02% of its portfolio in the stock. Ahl Prns Limited Liability Partnership has 11,209 shares for 0.02% of their US portfolio. Janney Montgomery Scott Limited Com accumulated 22,650 shares or 0.01% of the stock. Comm Commercial Bank accumulated 10,495 shares or 0% of the stock. Moreover, Point72 Asia (Hong Kong) Limited has 0.01% invested in Discovery Communications Inc. (NASDAQ:DISCA) for 200 shares. Credit Agricole S A holds 50,285 shares or 0% of its portfolio.

Insider Transactions: Since April 13, 2016, the stock had 0 buys, and 1 sale for $5.15 million net activity. Another trade for 183,637 shares valued at $5.15M was made by MALONE JOHN C on Tuesday, May 10.

Discovery Communications, Inc., is a global media company. The company has a market cap of $10.35 billion. The Firm provides content across multiple distribution platforms, including pay-television (pay-TV), free-to-air and broadcast television, Websites, digital distribution arrangements and content licensing agreements. It has a 14.44 P/E ratio. The Company’s divisions are U.S.

DISCA Company Profile

Discovery Communications, Inc., (Discovery), incorporated on April 28, 2008, is a global media company. The Firm provides content across multiple distribution platforms, including pay-television (pay-TV), free-to-air and broadcast television, Websites, digital distribution arrangements and content licensing agreements. The Company’s divisions are U.S. Networks, which consists principally of domestic television networks and Websites; International Networks, which consists primarily of international television networks and Websites; Education and Other, which consists principally of curriculum product and service offerings, and production studios, and Corporate and Inter-segment Eliminations.

More news for Discovery Communications Inc. (NASDAQ:DISCA) were recently published by:, which released: “Discovery Communications reorganizes international content group” on October 11, 2016.‘s article titled: “The New #8 Most Shorted Nasdaq 100 Component: Discovery Communications” and published on September 13, 2016 is yet another important article.

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