Walt Disney (DIS) Downgraded to Sell at Zacks Investment Research
Walt Disney (NYSE:DIS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Tuesday.
According to Zacks, “Disney is acquiring majority of Twenty-First Century Fox’s assets, which includes its Film and Television studios accompanied by cable and international TV businesses. The deal provides a bout of fresh air to Disney, which for quite some time now has been jostling in the fast changing media landscape, where rise in streaming and cord cutting have become two faces of the coin. No wonder, the buyout of these assets would considerably enhance the media mogul’s bargaining power with Cable TV providers, increase affiliate fees, provide a fresh lease of life to ESPN and create cost synergies. Further, the addition of Fox's rich library of movies and TV series would greatly enhance Disney’s prospects in the streaming service. Bob Iger will continue to spearhead the company through 2021 for a smooth integration of Fox’s assets into Disney.”
Several other brokerages have also issued reports on DIS. Jefferies Group reiterated a “hold” rating and issued a $103.00 price target (down from $110.00) on shares of Walt Disney in a research note on Friday, October 6th. Pivotal Research lifted their price target on shares of Walt Disney from $83.00 to $91.00 and gave the company a “sell” rating in a research note on Thursday, December 14th. BTIG Research reiterated a “sell” rating on shares of Walt Disney in a research note on Monday, September 25th. Sanford C. Bernstein reiterated a “market perform” rating on shares of Walt Disney in a research note on Tuesday, September 12th. Finally, Morgan Stanley lowered their price target on shares of Walt Disney from $130.00 to $120.00 and set an “overweight” rating on the stock in a research note on Tuesday, October 31st. Four research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating, eighteen have issued a buy rating and one has given a strong buy rating to the stock. Walt Disney has a consensus rating of “Hold” and a consensus price target of $114.97.
Shares of Walt Disney (DIS) traded up $0.10 during mid-day trading on Tuesday, reaching $110.12. 3,747,841 shares of the company’s stock traded hands, compared to its average volume of 8,346,061. The company has a quick ratio of 0.74, a current ratio of 0.81 and a debt-to-equity ratio of 0.42. Walt Disney has a 12-month low of $96.20 and a 12-month high of $116.10. The firm has a market cap of $166,420.00, a price-to-earnings ratio of 19.39, a P/E/G ratio of 2.38 and a beta of 1.38.
Walt Disney (NYSE:DIS) last issued its quarterly earnings results on Thursday, November 9th. The entertainment giant reported $1.07 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.12 by ($0.05). Walt Disney had a net margin of 14.59% and a return on equity of 16.71%. The business had revenue of $12.78 billion during the quarter, compared to analyst estimates of $13.30 billion. During the same quarter in the previous year, the firm posted $1.10 earnings per share. The firm’s quarterly revenue was down 2.8% on a year-over-year basis. equities analysts expect that Walt Disney will post 6.23 earnings per share for the current fiscal year.
Several hedge funds have recently made changes to their positions in DIS. Lee Financial Co boosted its holdings in shares of Walt Disney by 7.6% during the 2nd quarter. Lee Financial Co now owns 1,052 shares of the entertainment giant’s stock worth $112,000 after buying an additional 74 shares during the period. Legacy Advisors LLC bought a new stake in shares of Walt Disney during the 3rd quarter worth about $137,000. Malaga Cove Capital LLC bought a new stake in shares of Walt Disney during the 3rd quarter worth about $140,000. Wealthcare Advisory Partners LLC bought a new stake in shares of Walt Disney during the 3rd quarter worth about $142,000. Finally, Krilogy Financial LLC boosted its holdings in Walt Disney by 13.2% in the 2nd quarter. Krilogy Financial LLC now owns 1,422 shares of the entertainment giant’s stock valued at $151,000 after purchasing an additional 166 shares during the period. 61.52% of the stock is owned by institutional investors and hedge funds.
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Walt Disney Company Profile
The Walt Disney Company is an entertainment company. The Company operates in four business segments: Media Networks, Parks and Resorts, Studio Entertainment, and Consumer Products & Interactive Media. The media networks segment includes cable and broadcast television networks, television production and distribution operations, domestic television stations, and radio networks and stations.
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