Walt Disney (DIS) Stock Rating Lowered by Zacks Investment Research

Walt Disney (NYSE:DIS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and 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.”

DIS has been the topic of several other reports. Piper Jaffray Companies set a $130.00 target price on Walt Disney and gave the company a “buy” rating in a research note on Tuesday, October 31st. JPMorgan Chase & Co. set a $125.00 price target on Walt Disney and gave the stock a “buy” rating in a research note on Friday, November 10th. Rosenblatt Securities raised Walt Disney from a “neutral” rating to a “buy” rating and upped their price target for the stock from $115.00 to $130.00 in a research note on Wednesday, January 3rd. Vetr cut Walt Disney from a “buy” rating to a “hold” rating and set a $106.77 price target on the stock. in a research note on Monday, November 13th. Finally, Citigroup reaffirmed a “neutral” rating on shares of Walt Disney in a research note on Thursday, September 28th. Four investment analysts have rated the stock with a sell rating, thirteen have assigned a hold rating, eighteen have assigned a buy rating and one has issued a strong buy rating to the company’s stock. The stock currently has an average rating of “Hold” and an average price target of $115.77.

Walt Disney (NYSE:DIS) traded up $1.48 on Tuesday, hitting $112.47. The stock had a trading volume of 5,881,100 shares, compared to its average volume of 9,620,000. 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 52-week low of $96.20 and a 52-week high of $116.10. The stock has a market capitalization of $169,860.00, a PE ratio of 19.80, a PEG ratio of 2.38 and a beta of 1.38.

Walt Disney (NYSE:DIS) last posted its earnings results on Thursday, November 9th. The entertainment giant reported $1.07 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ 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 for the quarter, compared to analysts’ expectations of $13.30 billion. During the same period last year, the firm posted $1.10 earnings per share. Walt Disney’s quarterly revenue was down 2.8% on a year-over-year basis. analysts forecast that Walt Disney will post 6.23 earnings per share for the current fiscal year.

A number of institutional investors have recently added to or reduced their stakes in DIS. Vanguard Group Inc. lifted its holdings in shares of Walt Disney by 2.2% during the second quarter. Vanguard Group Inc. now owns 98,803,049 shares of the entertainment giant’s stock valued at $10,497,824,000 after purchasing an additional 2,131,932 shares in the last quarter. Northern Trust Corp lifted its holdings in shares of Walt Disney by 2.5% during the second quarter. Northern Trust Corp now owns 20,462,287 shares of the entertainment giant’s stock valued at $2,174,118,000 after purchasing an additional 500,349 shares in the last quarter. Legal & General Group Plc lifted its holdings in shares of 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 valued at $806,872,000 after purchasing an additional 300,973 shares in the last quarter. Parnassus Investments CA lifted its holdings in shares of Walt Disney by 19.3% during the third quarter. Parnassus Investments CA now owns 6,941,130 shares of the entertainment giant’s stock valued at $684,187,000 after purchasing an additional 1,123,949 shares in the last quarter. Finally, Swiss National Bank lifted its holdings in shares of Walt Disney by 7.8% during the second quarter. Swiss National Bank now owns 5,777,328 shares of the entertainment giant’s stock valued at $613,841,000 after purchasing an additional 420,200 shares in the last quarter. 61.52% of the stock is currently owned by institutional investors and hedge funds.

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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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