Walt Disney Target of Unusually Large Options Trading (NYSE:DIS)

Key Points

• Unusually heavy call options activity hit Walt Disney, with investors buying 51,956 call contracts on Friday, about 44% above the stock’s typical daily call volume.
• Disney shares rose to $95.69 after the options surge, but the stock remains below both its 50-day and 200-day moving averages and near its 52-week low.
• The company recently beat earnings estimates and is getting more bullish analyst coverage, though concerns remain after reports of job cuts across parts of its media business.

The Walt Disney Company (NYSE:DIS - Get Free Report) was the recipient of some unusual options trading activity on Friday. Stock investors purchased 51,956 call options on the stock. This represents an increase of 44% compared to the typical daily volume of 36,121 call options.

Walt Disney Price Performance

Shares of DIS traded up $2.86 during mid-day trading on Friday, hitting $95.69. The company's stock had a trading volume of 4,643,472 shares, compared to its average volume of 10,501,363. The company has a current ratio of 0.68, a quick ratio of 0.62 and a debt-to-equity ratio of 0.33. Walt Disney has a 1-year low of $92.18 and a 1-year high of $122.45. The firm has a market capitalization of $166.16 billion, a P/E ratio of 15.30, a P/E/G ratio of 1.21 and a beta of 1.39. The firm has a 50-day simple moving average of $99.87 and a 200 day simple moving average of $102.96.

Walt Disney (NYSE:DIS - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The entertainment giant reported $1.57 earnings per share for the quarter, topping analysts' consensus estimates of $1.49 by $0.08. Walt Disney had a return on equity of 8.92% and a net margin of 11.54%.The firm had revenue of $25.17 billion for the quarter, compared to analyst estimates of $24.87 billion. During the same quarter in the prior year, the company posted $1.45 earnings per share. Walt Disney's quarterly revenue was up 6.5% on a year-over-year basis. Walt Disney has set its FY 2026 guidance at 6.640-6.640 EPS. Analysts predict that Walt Disney will post 6.85 EPS for the current fiscal year.

Key Stories Impacting Walt Disney

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

• Positive Sentiment: Wall Street analysts are turning more optimistic on Disney, which can support the stock if brokers raise targets or reiterate buy ratings. Is Disney (DIS) a Buy as Wall Street Analysts Look Optimistic?
• Positive Sentiment: Disney is expanding revenue opportunities in its parks, resorts and cruises through a new Kraft Heinz partnership, giving visitors more branded products to buy on-site and potentially boosting per-guest spending. Disney stock gets new theme park sales boost from Kraft Heinz deal
• Neutral Sentiment: Disney is promoting new content for Disney+, including the “Disney Worldbuilders” documentary and a D23 sweepstakes, which may help engagement but is not a major near-term earnings driver. Disney Worldbuilders Documentary Set to Premiere on Disney+
• Neutral Sentiment: Several entertainment and nostalgia-focused stories about Disney surfaced, but they appear unlikely to materially affect the stock on their own. 1940 Disney Classic Reimagined with Freddy Krueger Actor in Lead Role
• Negative Sentiment: Disney reportedly cut hundreds of jobs, including in Pixar, ESPN and National Geographic, reinforcing concerns about restructuring costs and pressure across parts of the media business. Disney reportedly lays off hundreds of employees, Pixar hit hard despite blockbuster success
• Negative Sentiment: Recent trading weakness and a move closer to the 52-week low suggest investors are still worried about Disney’s near-term momentum despite the latest bounce. Walt Disney (DIS) Registers a Bigger Fall Than the Market: Important Facts to Note

Analyst Ratings Changes

Several research firms have weighed in on DIS. Guggenheim lifted their target price on Walt Disney from $115.00 to $120.00 and gave the company a "buy" rating in a research report on Thursday, May 7th. Phillip Securities upgraded shares of Walt Disney from a "moderate buy" rating to a "strong-buy" rating in a research note on Monday, May 11th. Rosenblatt Securities reiterated a "buy" rating and set a $126.00 target price on shares of Walt Disney in a research note on Tuesday, July 7th. JPMorgan Chase & Co. boosted their price target on Walt Disney from $139.00 to $140.00 and gave the company an "overweight" rating in a research report on Tuesday, June 30th. Finally, Weiss Ratings downgraded Walt Disney from a "hold (c+)" rating to a "hold (c)" rating in a research note on Thursday, June 11th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $129.00.

Institutional Investors Weigh In On Walt Disney

A number of institutional investors and hedge funds have recently modified their holdings of DIS. J. Stern & Co. LLP boosted its position in Walt Disney by 9,060.1% during the fourth quarter. J. Stern & Co. LLP now owns 38,135,363 shares of the entertainment giant's stock worth $4,338,660,000 after purchasing an additional 37,719,041 shares in the last quarter. Norges Bank acquired a new position in shares of Walt Disney during the 4th quarter worth $2,388,278,000. Viking Global Investors LP acquired a new position in shares of Walt Disney during the 2nd quarter worth $725,219,000. Price T Rowe Associates Inc. MD boosted its position in shares of Walt Disney by 62.5% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 13,876,878 shares of the entertainment giant's stock worth $1,578,773,000 after buying an additional 5,334,866 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership grew its stake in Walt Disney by 37.8% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 12,569,185 shares of the entertainment giant's stock valued at $1,429,996,000 after acquiring an additional 3,450,198 shares during the last quarter. Institutional investors and hedge funds own 65.71% of the company's stock.

About Walt Disney

The Walt Disney Company NYSE: DIS, commonly known as Disney, is a diversified global entertainment and media conglomerate headquartered in Burbank, California. Founded in 1923 by Walt and Roy O. Disney, the company grew from an animation studio into a multi‑national entertainment enterprise known for iconic intellectual property and family‑oriented storytelling. Disney's operations span film and television production, streaming services, theme parks and resorts, consumer products, and live entertainment.

On the content side, Disney produces and distributes feature films and television programming through a portfolio of studios and labels that includes Walt Disney Pictures, Pixar, Marvel Studios, Lucasfilm and 20th Century Studios, along with broadcast and cable networks such as ABC, FX and National Geographic.

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