The Walt Disney Company (DIS): A Good Time To Get In The Game?

Analysts at Imperial Capital upped their rating on shares of The Walt Disney Company (NYSE:DIS) from In-line to Outperform in their opinion released on November 27. Barclays analysts bumped their recommendation on DIS stock from Equal Weight to Overweight in a separate flash note to investors on October 19. Analysts at Imperial Capital are sticking to their In-line recommendation. However, on August 09, they lifted target price for these shares to $112 from $108. Analysts at Imperial Capital, made their first call for the stock with a In-line rating, according to a research note that dated back to August 09.

By watching the trading activity of corporate insiders, it will become easier to get a sense of The Walt Disney Company (NYSE:DIS)’s prospects. The earliest insider trade took place on 01/09/2019. Woodford Brent parted with a total of 2 thousand shares of company at average share price of $112.75. The total for the sales was set at $225.5 thousand. After this transaction, the EVP, Control, Fin Plan & Tax account balance stood at 24.89 thousand shares. The stock lost -0.09 percent since that insider sale. On 01/04/2019, Woodford Brent, EVP, Control, Fin Plan & Tax, sold 0.29 thousand shares at a price per share of $110. This removed 32.34 thousand shares from the insider’s fortune and the stock saw a 2.41 percent rally in value since the news became public. This transaction left 26.89 thousand shares in the EVP, Control, Fin Plan & Tax account. On 12/28/2018, Sr EVP, General Counsel & Secy Braverman Alan N performed a sale transaction worth $124.18 thousand. This sale at $107.7 each has eliminated 1.15 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 4.6 percent increase since the transaction was reported. The insider now is left with 118.23 thousand shares remaining in the account. Woodford Brent, who performs the EVP, Control, Fin Plan & Tax job, sold 0.72 thousand shares for $72.91 thousand. The disposal occurred on 12/26/2018 was priced at $101.13 per share. The share price soared 11.39 percent since the reporting date. Woodford Brent now left with a stake of 27.19 thousand DIS stock worth $3.06 million after the insider selling.

The Walt Disney Company (DIS) is expected to jump by 10.5 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $147-month high price target. This represents a whopping 30.49 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $129, which represents a return potential of 14.51 percent when compared to the closing price of the stock of $112.65 on Friday, January 11. The lowest price target for the stock is $95 — slightly more than -15.67 percent from DIS’s current share price.

The shares are currently floating around the first support level of $111.95. Below this, the next support is placed in the zone of $111.24. Till the time, the DIS stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 54.66 on daily chart, which may remain a cause for concern. If the price breaks below $111.24 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $113.14 mark may result into a pull-back move towards $113.62 level.

DIS shares dropped -0.15 points or -0.13 percent on Friday to $112.65 with a light trade volume of 4.749 million shares. After opening the session at $112.18, the shares went as high as $112.92 and as low as $111.73, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $168 billion and now has 1.49 billion shares outstanding. The Walt Disney Company (DIS) stock has gained 0.61 percent of market value in 21 trading days.

DIS stock has a trailing 3-year beta of 1.05, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $7.23 a share in the trailing twelve months. The stock’s value has surged 2.74 percent year to date (YTD) against a rise of 2.9 percent in 12 month’s time. The company’s shares still trade -6.28 percent away from its 1-year high of $120.20 and 15.33 percent up from 52-week low of $97.68. The average consensus rating on the company is 2.3, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of The Walt Disney Company (DIS) are trading at a P/E ratio of 17.71 times earnings reported for the past 12 months. The industry DIS operates in has an average P/E of 24.34. Its P/E ratio went as low as 16.21X and as high as 21 over the 5-year span. Further, it is sporting a 2.83 on the Price-to-Sales ratio. Compare this with the industry average P/S of 5.36. 44.9 percent is the gross profit margin for The Walt Disney Company and operating margin sits at 25.9 percent. Along with this, the net profit margin is 21.2 percent.

DIS will be showing off its Q1 earnings on February 05. Analysts are forecasting revenue to suffer decline of -0.8 percent to $15.2B in the next fiscal quarter, while earnings are seen soaring by nearly -16.93 percent to $1.57 per share. History has shown that shares in The Walt Disney Company have gone down on 19 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings. In last reported earnings results, it earned $1.48 per share, better than the $1.34, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $14.3B, better than the $13.7B analysts expected. Earnings are estimated to increase by 27.1 percent this year, 4.81 percent next year and continue to increase by 6.68 percent annually for the next 5 years.