Walt Disney Sees Unusually High Options Volume (NYSE:DIS)

Key Points

• Walt Disney Company experienced a surge in options trading, with call options volume reaching 88,321, an increase of approximately 44% compared to the average volume.
• Several analysts raised their target prices for Disney, with Citigroup increasing its target from $125.00 to $140.00, while UBS and JPMorgan also set new targets of $138.00.
• The company's shares saw a 0.5% drop in price, closing at $118.78, despite a strong quarterly earnings report that exceeded analysts' expectations.

The Walt Disney Company (NYSE:DIS - Get Free Report) was the target of some unusual options trading on Tuesday. Stock traders purchased 88,321 call options on the company. Thisisanincreaseofapproximately44% compared to the average volume of 61,200 call options.

Wall Street Analyst Weigh In

Several research firms recently commented on DIS. Citigroup upped their target price on Walt Disney from $125.00 to $140.00 and gave the company a "buy" rating in a research note on Wednesday, July 9th. Wall Street Zen lowered Walt Disney from a "strong-buy" rating to a "buy" rating in a research note on Sunday, July 20th. Wolfe Research raised Walt Disney from a "peer perform" rating to an "outperform" rating and set a $112.00 price target for the company in a report on Monday, April 21st. UBS Group upped their price objective on Walt Disney from $120.00 to $138.00 and gave the company a "buy" rating in a research note on Wednesday, July 16th. Finally, JPMorgan Chase & Co. raised their target price on Walt Disney from $130.00 to $138.00 and gave the company an "overweight" rating in a research report on Tuesday, July 29th. Five investment analysts have rated the stock with a hold rating, nineteen have issued a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $129.83.

Insider Activity

In related news, EVP Brent Woodford sold 1,000 shares of Walt Disney stock in a transaction that occurred on Tuesday, May 13th. The stock was sold at an average price of $110.84, for a total value of $110,840.00. Following the sale, the executive vice president directly owned 46,831 shares in the company, valued at $5,190,748.04. The trade was a 2.09% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Insiders own 0.16% of the company's stock.

Hedge Funds Weigh In On Walt Disney

Several hedge funds and other institutional investors have recently modified their holdings of the stock. MJT & Associates Financial Advisory Group Inc. bought a new stake in Walt Disney during the first quarter worth about $26,000. DiNuzzo Private Wealth Inc. boosted its holdings in shares of Walt Disney by 82.5% during the 2nd quarter. DiNuzzo Private Wealth Inc. now owns 208 shares of the entertainment giant's stock valued at $26,000 after acquiring an additional 94 shares in the last quarter. Mpwm Advisory Solutions LLC bought a new position in Walt Disney during the 4th quarter worth $27,000. Kessler Investment Group LLC increased its position in Walt Disney by 274.0% in the 1st quarter. Kessler Investment Group LLC now owns 273 shares of the entertainment giant's stock valued at $27,000 after buying an additional 200 shares in the last quarter. Finally, Copia Wealth Management acquired a new position in Walt Disney during the 4th quarter valued at about $36,000. Institutional investors own 65.71% of the company's stock.

Walt Disney Stock Down 0.5%

Shares of DIS traded down $0.57 during trading on Tuesday, reaching $118.78. The company's stock had a trading volume of 9,537,388 shares, compared to its average volume of 9,729,105. The company has a fifty day moving average of $118.95 and a two-hundred day moving average of $107.82. Walt Disney has a twelve month low of $80.10 and a twelve month high of $124.69. The company has a market cap of $213.53 billion, a price-to-earnings ratio of 24.28, a P/E/G ratio of 1.71 and a beta of 1.56. The company has a quick ratio of 0.61, a current ratio of 0.67 and a debt-to-equity ratio of 0.34.

Walt Disney (NYSE:DIS - Get Free Report) last released its quarterly earnings results on Wednesday, May 7th. The entertainment giant reported $1.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.21 by $0.24. Walt Disney had a return on equity of 9.99% and a net margin of 9.47%. The company had revenue of $23.62 billion during the quarter, compared to analysts' expectations of $23.15 billion. During the same quarter in the prior year, the business posted $1.21 earnings per share. The company's revenue for the quarter was up 7.0% compared to the same quarter last year. On average, sell-side analysts predict that Walt Disney will post 5.47 EPS for the current fiscal year.

Walt Disney Company Profile

The Walt Disney Company operates as an entertainment company worldwide. It operates through three segments: Entertainment, Sports, and Experiences. The company produces and distributes film and television video streaming content under the ABC Television Network, Disney, Freeform, FX, Fox, National Geographic, and Star brand television channels, as well as ABC television stations and A+E television networks; and produces original content under the ABC Signature, Disney Branded Television, FX Productions, Lucasfilm, Marvel, National Geographic Studios, Pixar, Searchlight Pictures, Twentieth Century Studios, 20th Television, and Walt Disney Pictures banners.

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