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

Shares of The Walt Disney Company (NYSE:DIS) 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 trading hands. The stock had previously closed at $114.18.

Trending Headlines about Walt Disney

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

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on DIS. UBS Group set a $115.00 target price on Walt Disney in a report on Monday, August 24th. Needham & Company LLC reiterated a “buy” rating and set a $125.00 price target on shares of Walt Disney in a research note on Friday, October 9th. Yorkville Ives assumed coverage on shares of Walt Disney in a research note on Tuesday, October 6th. They set an “outperform” rating and a $125.00 price target on the stock. Wall Street Zen raised shares of Walt Disney from a “hold” rating to a “buy” rating in a research report on Saturday, September 19th. Finally, Sanford C. Bernstein reissued an “outperform” rating on shares of Walt Disney in a research note on Tuesday, October 6th. One investment 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. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $128.16.

Walt Disney Trading Up 4.9%

The company’s 50 day simple moving average is $107.54 and its 200 day simple moving average is $103.59. The firm has a market cap 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 debt-to-equity ratio of 0.32, a current ratio of 0.71 and a quick ratio of 0.65.

Walt Disney (NYSE:DIS) last announced its quarterly earnings data on Wednesday, August 5th. The entertainment giant reported $2.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.86 by $0.20. The business had revenue of $25.25 billion for the quarter, compared to analysts’ expectations of $25.39 billion. Walt Disney had a return on equity of 9.90% and a net margin of 8.70%. The company’s revenue for the quarter was up 6.8% compared to the same quarter last year. During the same period last year, the firm earned $1.61 earnings per share. As a group, research analysts expect that The Walt Disney Company will post 6.91 earnings per share for the current fiscal year.

Insider Buying and Selling at Walt Disney

In other Walt Disney news, EVP Paul M. Roeder sold 3,596 shares of the stock in a transaction dated 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 available at this link. Also, EVP Brent Woodford sold 7,238 shares of Walt Disney stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $105.31, for a total value of $762,233.78. Following the completion of the transaction, the executive vice president owned 62,323 shares of the company’s stock, valued at $6,563,235.13. The trade was a 10.41% 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. Insiders have sold a total of 27,400 shares of company stock valued at $2,957,085 over the last three months. 0.17% of the stock is currently owned by insiders.

Institutional Trading of Walt Disney

A number of large investors have recently made changes to their positions in the company. Highland Investment Advisors LLC purchased a new stake in shares of Walt Disney in the 2nd quarter valued at approximately $25,000. Marquette Asset Management LLC raised its holdings in shares of Walt Disney by 316.4% in the 2nd quarter. Marquette Asset Management LLC now owns 279 shares of the entertainment giant’s stock valued at $27,000 after purchasing an additional 212 shares in the last quarter. Putney Financial Group LLC acquired a new stake in shares of Walt Disney in the 3rd quarter valued at $34,000. Ballast Advisors LLC purchased a new stake in shares of Walt Disney during the 1st quarter worth $37,000. Finally, Boit C F David purchased a new stake in shares of Walt Disney during the 3rd quarter worth $42,000. 65.71% of the stock is currently 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.