Walt Disney (NYSE:DIS) Downgraded to “Strong Sell” at Zacks Investment Research

Zacks Investment Research cut shares of Walt Disney (NYSE:DISGet Rating) from a hold rating to a strong sell rating in a report released on Tuesday, Zacks.com reports. The firm currently has $92.00 price objective on the entertainment giant’s stock.

According to Zacks, “Disney shares have underperformed the industry year to date. Disney+’s profitability is expected to be negatively impacted by higher investments in content, which will drive up programming and production costs at Media and Entertainment Distribution. Closure of its Asian theme park due to COVID-19 doesn’t bode well for the Parks, Experiences and Products top-line growth. Disney expects this to reduce operating income by up to $350 million in the fiscal third quarter. Disney’s leveraged balance sheet is a concern. Nevertheless, the company benefits from the growing popularity of Disney+, owing to a strong content portfolio and a cheaper bundle offering. Availability in the Nordics, Latin America and other Asian territories is helping it in expanding user base. Revival in Parks business also hold promise in the long haul.”

Other analysts also recently issued reports about the company. Tigress Financial reiterated a buy rating and set a $229.00 price target on shares of Walt Disney in a report on Friday, April 1st. BMO Capital Markets decreased their price target on Walt Disney from $140.00 to $135.00 in a report on Thursday, May 12th. Credit Suisse Group decreased their price target on Walt Disney from $218.00 to $170.00 in a report on Thursday, May 12th. Guggenheim increased their price target on Walt Disney from $165.00 to $172.00 and gave the stock a neutral rating in a report on Thursday, February 10th. Finally, Moffett Nathanson decreased their price target on Walt Disney from $165.00 to $150.00 and set a neutral rating for the company in a report on Monday, March 7th. Two equities research analysts have rated the stock with a sell rating, five have assigned a hold rating and eighteen have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of Buy and an average price target of $164.65.

NYSE DIS opened at $107.79 on Tuesday. The company has a market capitalization of $196.25 billion, a price-to-earnings ratio of 74.34, a PEG ratio of 1.21 and a beta of 1.21. Walt Disney has a twelve month low of $99.47 and a twelve month high of $187.58. The stock has a fifty day simple moving average of $117.07 and a 200 day simple moving average of $136.52. The company has a quick ratio of 1.01, a current ratio of 1.06 and a debt-to-equity ratio of 0.49.

Walt Disney (NYSE:DISGet Rating) last posted its quarterly earnings data on Wednesday, May 11th. The entertainment giant reported $1.08 earnings per share for the quarter, missing analysts’ consensus estimates of $1.19 by ($0.11). Walt Disney had a net margin of 3.46% and a return on equity of 6.87%. During the same period last year, the company earned $0.79 earnings per share. Research analysts expect that Walt Disney will post 4.22 earnings per share for the current fiscal year.

In other news, EVP Brent Woodford sold 226 shares of Walt Disney stock in a transaction on Thursday, March 10th. The shares were sold at an average price of $132.50, for a total transaction of $29,945.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.10% of the stock is owned by insiders.

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Del Sette Capital Management LLC bought a new stake in Walt Disney in the fourth quarter worth $316,000. Sarasin & Partners LLP lifted its stake in Walt Disney by 7.8% in the fourth quarter. Sarasin & Partners LLP now owns 1,853,063 shares of the entertainment giant’s stock worth $287,021,000 after purchasing an additional 133,352 shares during the last quarter. Baxter Bros Inc. lifted its stake in Walt Disney by 2.0% in the fourth quarter. Baxter Bros Inc. now owns 79,812 shares of the entertainment giant’s stock worth $12,362,000 after purchasing an additional 1,601 shares during the last quarter. Monarch Capital Management Inc. lifted its stake in Walt Disney by 15.2% in the fourth quarter. Monarch Capital Management Inc. now owns 15,844 shares of the entertainment giant’s stock worth $2,454,000 after purchasing an additional 2,095 shares during the last quarter. Finally, HBW Advisory Services LLC lifted its stake in Walt Disney by 6.8% in the fourth quarter. HBW Advisory Services LLC now owns 29,205 shares of the entertainment giant’s stock worth $4,523,000 after purchasing an additional 1,849 shares during the last quarter. 64.17% of the stock is owned by institutional investors.

Walt Disney Company Profile (Get Rating)

The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide. It operates through two segments, Disney Media and Entertainment Distribution; and Disney Parks, Experiences and Products. The company engages in the film and episodic television content production and distribution activities, as well as operates television broadcast networks under the ABC, Disney, ESPN, Freeform, FX, Fox, National Geographic, and Star brands; and studios that produces motion pictures under the Walt Disney Pictures, Twentieth Century Studios, Marvel, Lucasfilm, Pixar, and Searchlight Pictures banners.

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