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 in a transaction worth $52.4 billion. 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.”
DIS has been the subject of a number of other reports. Edward Jones cut Walt Disney from a “buy” rating to a “hold” rating in a report on Friday, December 15th. Wells Fargo & Company reiterated a “buy” rating and issued a $135.00 price objective on shares of Walt Disney in a research report on Friday, December 15th. Piper Jaffray Companies set a $130.00 price objective on Walt Disney and gave the company a “buy” rating in a research report on Tuesday, August 22nd. Vetr upgraded Walt Disney from a “buy” rating to a “strong-buy” rating and set a $110.51 price objective on the stock in a research report on Wednesday, October 11th. Finally, Barclays decreased their price objective on Walt Disney from $98.00 to $94.00 and set an “equal weight” rating on the stock in a research report on Friday, October 13th. Four investment analysts have rated the stock with a sell rating, fifteen have issued a hold rating and seventeen have assigned a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and an average target price of $113.20.
Walt Disney (NYSE:DIS) last issued its earnings results on Thursday, November 9th. The entertainment giant reported $1.07 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $1.12 by ($0.05). Walt Disney had a return on equity of 19.66% and a net margin of 16.29%. The company had revenue of $12.78 billion during the quarter, compared to analyst estimates of $13.30 billion. During the same period in the previous year, the company posted $1.10 earnings per share. The company’s quarterly revenue was down 2.8% on a year-over-year basis. research analysts predict that Walt Disney will post 6.23 earnings per share for the current year.
Large investors have recently bought and sold shares of the company. Vanguard Group Inc. lifted its holdings in Walt Disney by 2.2% during the second quarter. Vanguard Group Inc. now owns 98,803,049 shares of the entertainment giant’s stock worth $10,497,824,000 after acquiring an additional 2,131,932 shares in the last quarter. Northern Trust Corp lifted its holdings in Walt Disney by 2.5% during the second quarter. Northern Trust Corp now owns 20,462,287 shares of the entertainment giant’s stock worth $2,174,118,000 after acquiring an additional 500,349 shares in the last quarter. Legal & General Group Plc lifted its holdings in Walt Disney by 3.8% during the third quarter. Legal & General Group Plc now owns 8,186,026 shares of the entertainment giant’s stock worth $806,872,000 after acquiring an additional 300,973 shares in the last quarter. Parnassus Investments CA lifted its holdings in Walt Disney by 19.3% during the third quarter. Parnassus Investments CA now owns 6,941,130 shares of the entertainment giant’s stock worth $684,187,000 after acquiring an additional 1,123,949 shares in the last quarter. Finally, Swiss National Bank lifted its holdings in Walt Disney by 7.8% during the second quarter. Swiss National Bank now owns 5,777,328 shares of the entertainment giant’s stock worth $613,841,000 after acquiring an additional 420,200 shares in the last quarter. Institutional investors and hedge funds own 61.39% of the company’s stock.
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About Walt Disney
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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