- Warner Bros. Discovery (NASDAQ:WBD) Director Geoffrey Yang purchased $1.01 million of WBD stock
- Others insiders, including CEO David Zaslav, have also purchased shares recently
- WBD stock is up 3% today at the time of writing
Shares of Warner Bros. Discovery (NASDAQ:WBD) are in the spotlight following a flurry of insider buys in the past month. Earlier this year, AT&T (NYSE:T) spun off WarnerMedia, which merged with Discovery to form the newly created Warner Bros. Discovery.
However, things are off to an uneasy start for WBD stock. Last month, Warner Bros. disclosed that it would shut down CNN+, which it had invested tens of millions of dollars into. CNN CEO Chris Licht stated that the decision was “in line with WBD’s broader direct-to-consumer strategy.”
Despite the failed operation, insiders of Warner Bros. have been actively buying shares of their own company. Let’s get into the details.
Director Geoffrey Yang Buys WBD stock
On May 5, Director Geoffrey Yang purchased 58,296 shares of WBD at average prices ranging between $18.78 and $18.79. Yang purchased the shares through various investment vehicles with which he is associated, such as the Yang Family Trust. In total, the purchases amounted to around $1.01 million. Yang also directly owns 73,016 shares, which remained unchanged.
Additionally, CEO David Zaslav disclosed purchasing 50,200 shares on April 27. He purchased the shares at average prices between $19.49 and $19.93. In total, the transaction amounted to just over $1 million. After the purchase, Zaslav directly owns 4.09 million shares. He also owns 153 shares indirectly through his spouse.
On the same day, CFO Gunnar Wiedenfels reported purchasing shares as well. The CFO scooped up 25,000 shares at an average price of $19.95 per share. Furthermore, the transaction amounted to around half a million dollars. After the purchase, Wiedenfels directly owns 481,527 shares of WBD stock.
How Do Other Insiders Feel About Warner Bros. Discovery?
According to Nasdaq, WBD insiders have purchased 224.4 million shares in the past 12 months, while selling 191.5 million shares. In total, insiders have amounted to a net activity of 32.8 million shares purchased. That certainly seems like a bullish stamp of approval from the group of people closest to the company.
These buys show that insiders are confident about the trajectory of their newly formed company. Shares of WBD have also declined by over 25% during the past month. While the exact reason of the insider buys is unknown, insiders usually buy their stock for one reason: they believe the price will go up.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.