Is Buying Discovery Communications Inc. Here a Winning Strategy? Option Traders Like The Stock

 Is Buying Discovery Communications Inc. Here a Winning Strategy? Option Traders Like The Stock

In today’s session Discovery Communications Inc. (DISCA) registered an unusually high (393) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the November, 2016 call, expecting serious DISCA increase. With 393 contracts traded and 18324 open interest for the Nov, 16 contract, it seems this is a quite bullish bet. The option with symbol: DISCA161118C00027500 closed last at: $0.3 or 14.3% down. About 234,253 shares traded hands. Discovery Communications Inc. (NASDAQ:DISCA) has declined 11.70% since March 16, 2016 and is downtrending. It has underperformed by 17.24% the S&P500.

Analysts await Discovery Communications Inc. (NASDAQ:DISCA) to report earnings on November, 1. They expect $0.44 EPS, down 6.38% or $0.03 from last year’s $0.47 per share. DISCA’s profit will be $170.90M for 14.41 P/E if the $0.44 EPS becomes a reality. After $0.71 actual EPS 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 12.26% above today’s ($25.36) stock price. Discovery Communications has been the topic of 43 analyst reports since August 3, 2015 according to StockzIntelligence Inc. Topeka Capital Markets maintained it with “Buy” rating and $40 target price in Wednesday, September 30 report. The rating was downgraded by Barclays Capital to “Equal-Weight” on Friday, October 16. The rating was maintained by Barclays Capital with “Buy” on Sunday, August 16. The rating was maintained by M Partners with “Neutral” on Friday, May 6. Macquarie Research downgraded Discovery Communications Inc. (NASDAQ:DISCA) on Wednesday, October 14 to “Neutral” rating. The rating was upgraded by UBS on Monday, August 3 to “Neutral”. The rating was downgraded by Moffett Nathanson on Tuesday, September 27 to “Sell”. The firm earned “Mkt Perform” rating on Friday, February 19 by FBR Capital. The firm has “Buy” rating by Rosenblatt given on Friday, February 19. The firm has “Neutral” rating given on Friday, August 14 by Citigroup.

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 Q2 2016. 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.
Adage Partners Group Lc has 356,600 shares for 0.02% of their US portfolio. Sg Americas Ltd reported 91,027 shares or 0.02% of all its holdings. Principal Fincl Group owns 389,977 shares or 0.01% of their US portfolio. Everett Harris Com Ca has 0.01% invested in the company for 10,260 shares. Geode Cap Management Limited Liability last reported 0.03% of its portfolio in the stock. Pub Employees Retirement Association Of Colorado last reported 0.01% of its portfolio in the stock. Matarin Limited Liability Com accumulated 114,963 shares or 0% of the stock. Caisse De Depot Et Placement Du Quebec accumulated 0.01% or 132,839 shares. Arcadia Mgmt Corp Mi last reported 0% of its portfolio in the stock. Verition Fund Management Ltd Llc reported 20,834 shares or 0.06% of all its holdings. Trillium Asset Mgmt Ltd Co has invested 0.45% of its portfolio in Discovery Communications Inc. (NASDAQ:DISCA). Everence Capital Management holds 13,662 shares or 0.11% of its portfolio. Royal London Asset Mngmt Limited owns 96,116 shares or 0.04% of their US portfolio. Whittier Tru Com holds 0% or 698 shares in its portfolio. North Star Asset accumulated 335,887 shares or 1.06% of the stock.

Insider Transactions: Since May 10, 2016, the stock had 0 buys, and 1 insider sale for $5.15 million net activity. The insider MALONE JOHN C sold 183,637 shares worth $5.15 million.

Discovery Communications, Inc., is a global media company. The company has a market cap of $9.85 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 13.75 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.

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