Walt Disney (NYSE:DIS) Rating Lowered to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Disney from “Buy” to “Hold.” Despite the move, the broader analyst consensus remains “Moderate Buy,” with a $128.16 average price target.
• Disney beat quarterly EPS estimates, reporting $2.06 versus the $1.86 consensus, while revenue of $25.25 billion fell slightly short of forecasts; revenue rose 6.8% year over year.
• Recent coverage highlights potential cost savings alongside risks: reports say Disney is considering thousands of job cuts, and analysts have raised concerns about Netflix’s competitive lead in streaming.

Walt Disney (NYSE:DIS - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Saturday, Wall Street Zen reports.

A number of other analysts have also recently commented on the company. Citigroup upped their price target on Walt Disney from $135.00 to $140.00 and gave the stock a "buy" rating in a research report on Friday, October 16th. Guggenheim restated a "buy" rating and issued a $120.00 target price on shares of Walt Disney in a report on Monday, September 28th. Rosenblatt Securities reiterated a "buy" rating and set a $126.00 target price on shares of Walt Disney in a research note on Thursday, August 6th. Weiss Ratings raised shares of Walt Disney from a "hold (c)" rating to a "hold (c+)" rating in a report on Friday, October 9th. Finally, Barclays increased their target price on Walt Disney from $110.00 to $115.00 and gave the stock an "overweight" rating in a research note on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, Walt Disney has an average rating of "Moderate Buy" and a consensus price target of $128.16.

Walt Disney Stock Down 0.4%

DIS stock opened at $116.72 on Friday. The company has a 50 day moving average price of $108.05 and a two-hundred day moving average price of $103.68. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.65 and a current ratio of 0.71. Walt Disney has a one year low of $92.18 and a one year high of $120.80. The stock has a market capitalization of $201.53 billion, a P/E ratio of 17.76, a PEG ratio of 1.31 and a beta of 1.44.

Walt Disney (NYSE:DIS - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The entertainment giant reported $2.06 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.86 by $0.20. Walt Disney had a return on equity of 9.90% and a net margin of 8.70%. The business had revenue of $25.25 billion during the quarter, compared to analyst estimates of $25.39 billion. During the same period last year, the company earned $1.61 earnings per share. Walt Disney's quarterly revenue was up 6.8% compared to the same quarter last year. As a group, sell-side analysts expect that Walt Disney will post 6.93 EPS for the current year.

Insider Activity at Walt Disney

In other Walt Disney news, EVP Paul Roeder sold 3,596 shares of the company's stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $106.32, for a total transaction of $382,326.72. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Brent Woodford sold 3,618 shares of the firm's stock in a transaction that occurred on Wednesday, November 4th. The shares were sold at an average price of $117.00, for a total value of $423,306.00. Following the completion of the sale, the executive vice president directly owned 62,995 shares of the company's stock, valued at $7,370,415. This trade represents a 5.43% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 51,570 shares of company stock worth $5,846,631. 0.17% of the stock is owned by insiders.

Institutional Investors Weigh In On Walt Disney

Institutional investors and hedge funds have recently made changes to their positions in the business. Bank of New York Mellon Corp purchased a new position in shares of Walt Disney during the second quarter valued at approximately $1,386,720,000. Arrowstreet Capital Limited Partnership raised its holdings in shares of Walt Disney by 13.6% during the first quarter. Arrowstreet Capital Limited Partnership now owns 14,272,449 shares of the entertainment giant's stock valued at $1,375,579,000 after acquiring an additional 1,703,264 shares during the last quarter. Amundi lifted its stake in shares of Walt Disney by 2.5% in the 1st quarter. Amundi now owns 11,349,651 shares of the entertainment giant's stock valued at $1,093,878,000 after purchasing an additional 273,128 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in Walt Disney by 2.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 7,416,858 shares of the entertainment giant's stock worth $714,736,000 after buying an additional 149,384 shares in the last quarter. Finally, Janus Henderson Group PLC increased its holdings in shares of Walt Disney by 7.7% in the 1st quarter. Janus Henderson Group PLC now owns 6,703,179 shares of the entertainment giant's stock valued at $646,047,000 after acquiring an additional 480,104 shares during the period. 65.71% of the stock is currently owned by hedge funds and other institutional investors.

Walt Disney News Summary

Here are the key news stories impacting Walt Disney this week:

• Positive Sentiment: Disney’s animated film Hexed is projected to generate $40 million–$50 million over the Thanksgiving box-office stretch. That forecast offers a possible theatrical boost, though it is an estimate rather than a result. Thanksgiving box-office projections
• Positive Sentiment: Walt Disney World is extending park hours for Thanksgiving week, a seasonal move that may help accommodate visitor demand and support park spending. Thanksgiving park hours
• Neutral Sentiment: EVP Brent Woodford sold 3,618 shares under a pre-arranged Rule 10b5-1 plan and still held 62,995 shares afterward, making the sale a limited signal about his outlook. SEC Form 4 filing
• Negative Sentiment: Reports say Disney is seeking savings of up to 20% and considering thousands of job cuts. Lower expenses could improve profitability if savings are achieved, but the scale of the reductions and employee uncertainty raise concerns about execution and possible effects on operations. Reports on planned cost savings and layoffs
• Negative Sentiment: A recent analysis says Netflix is pulling ahead of Disney, reinforcing concerns about competition in streaming. The article’s headline frames the issue as a potential buying opportunity, but the competitive gap remains a risk for Disney’s growth outlook. Analysis of Disney and Netflix competition

Walt Disney Company Profile

The Walt Disney Company is a global entertainment and media company whose businesses include film and television production, streaming, sports programming, and theme parks and resorts. Its brands and properties include Disney, Pixar, Marvel, Star Wars, ABC, and ESPN.

Disney produces and distributes films and television programs, operates streaming services including Disney+ and Hulu, and provides sports content through ESPN. Its Experiences business operates theme parks and resorts, cruise ships, and other travel and consumer experiences based on the company's characters and stories.

Founded in 1923 by Walt Disney and Roy O.

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