Walt Disney (NYSE:DIS) Hits New 12-Month High - Still a Buy?

Key Points

• Disney shares reached a 52-week high, trading around $118.77 after a previous close of $114.18.
• Analysts collectively rate the stock a “Moderate Buy,” with a consensus price target of $128.16. Disney’s latest reported quarterly EPS beat estimates, although revenue came in slightly below forecasts.
• Disney is reportedly weighing thousands of job cuts and asking some managers to find savings of up to 20%, with some savings potentially redirected to growth areas. The restructuring could improve efficiency but carries risks to employees, creative output, and customer experience.

The Walt Disney Company (NYSE:DIS - Get Free Report) reached a new 52-week high during mid-day trading on Wednesday. The stock traded as high as $118.73 and last traded at $118.7720, with a volume of 1,568,915 shares changing hands. The stock had previously closed at $114.18.

Walt Disney News Summary

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

• Positive Sentiment: Disney is reportedly considering thousands of job cuts and asking some managers to identify savings of up to 20%. Some savings may be reinvested in content, technology, parks and cruises, potentially improving efficiency while funding growth priorities. Disney plans several thousand layoffs, asks some managers to cut costs by up to 20%
• Positive Sentiment: Disney and WWE expanded their partnership, including plans for a two-day event at ESPN Wide World of Sports at Walt Disney World. The arrangement could drive event activity and audience engagement across Disney’s sports and resort properties. WWE, The Walt Disney Company Expand Partnership
• Neutral Sentiment: EVP Brent Woodford sold 6,474 shares worth about $725,000 under a pre-arranged Rule 10b5-1 trading plan. He retained 62,995 shares, making the transaction a limited signal about his outlook. Insider Selling: Walt Disney EVP Sells Stock
• Negative Sentiment: The reported scale of the cuts and broad savings targets could create execution risks, including disruption to employees and possible effects on creative output or customer experience. The details and impact of the restructuring remain uncertain. Disney eyes thousands of layoffs, managers asked to cut costs

Analyst Ratings Changes

A number of brokerages have commented on DIS. Argus reaffirmed a "buy" rating and set a $134.00 price target on shares of Walt Disney in a research report on Thursday, August 6th. Wells Fargo & Company increased their price objective on Walt Disney from $125.00 to $132.00 and gave the company an "overweight" rating in a report on Thursday, August 6th. Truist Financial set a $115.00 price objective on Walt Disney in a research note on Monday, August 3rd. Weiss Ratings raised Walt Disney from a "hold (c)" rating to a "hold (c+)" rating in a report on Friday, October 9th. Finally, Yorkville Ives began coverage on Walt Disney in a report on Tuesday, October 6th. They set an "outperform" rating and a $125.00 target price for the company. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, Walt Disney currently has a consensus rating of "Moderate Buy" and a consensus target price of $128.16.

Walt Disney Price Performance

The firm has a 50-day simple moving average of $107.54 and a two-hundred day simple moving average of $103.59. The company has a market capitalization of $206.72 billion, a price-to-earnings ratio of 24.67, a P/E/G ratio of 1.31 and a beta of 1.44. The company has a current ratio of 0.71, a quick ratio of 0.65 and a debt-to-equity ratio of 0.32.

Walt Disney (NYSE:DIS - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The entertainment giant reported $2.06 earnings per share for the quarter, beating analysts' consensus estimates 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 quarter last year, the business posted $1.61 EPS. The company's revenue was up 6.8% on a year-over-year basis. As a group, analysts predict that The Walt Disney Company will post 6.91 earnings per share for the current fiscal year.

Insider Activity

In other Walt Disney news, EVP Paul M. Roeder sold 3,596 shares of the company's stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $106.32, for a total value of $382,326.72. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, EVP Brent Woodford sold 6,474 shares of the firm's stock in a transaction that occurred on Monday, November 2nd. The stock was sold at an average price of $111.98, for a total transaction of $724,958.52. Following the sale, the executive vice president directly owned 62,995 shares in the company, valued at $7,054,180.10. The trade was a 9.32% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 27,400 shares of company stock worth $2,957,085. 0.17% of the stock is owned by corporate insiders.

Institutional Trading of Walt Disney

A number of hedge funds have recently added to or reduced their stakes in the company. Bank of New York Mellon Corp acquired a new stake in Walt Disney in the 2nd quarter valued at approximately $1,386,720,000. Arrowstreet Capital Limited Partnership lifted its stake in 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 worth $1,375,579,000 after purchasing an additional 1,703,264 shares in the last quarter. Amundi lifted its stake in Walt Disney by 2.5% during the first quarter. Amundi now owns 11,349,651 shares of the entertainment giant's stock worth $1,093,878,000 after purchasing an additional 273,128 shares in the last quarter. Dimensional Fund Advisors LP lifted its stake in Walt Disney by 2.1% during the first quarter. Dimensional Fund Advisors LP now owns 7,416,858 shares of the entertainment giant's stock worth $714,736,000 after purchasing an additional 149,384 shares in the last quarter. Finally, Janus Henderson Group PLC boosted its position in shares of Walt Disney by 7.7% during the first quarter. Janus Henderson Group PLC now owns 6,703,179 shares of the entertainment giant's stock worth $646,047,000 after buying an additional 480,104 shares during the period. 65.71% of the stock is owned by hedge funds and other institutional investors.

Walt Disney Company Profile

The Walt Disney Company NYSE: DIS is a global entertainment and media company that develops, produces and distributes branded content through film studios, television networks and streaming services. Its portfolio includes Disney, Pixar, Marvel, Star Wars, National Geographic and other entertainment brands, with distribution through services such as Disney+ and Hulu.

Disney also operates ESPN and related sports media businesses, as well as theme parks, resorts, cruise lines and vacation experiences.

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