Why investors are still bullish on Disney


The Walt Disney Company (DIS), is a worldwide entertainment company. The Company operates in four business segments: Media Networks, Parks Experiences and Products, Studio Entertainment, and Direct-To-Consumer and International. The company has market capital of $225.5 billion and is listed on NYSE. The stock has 52-week low of $79.07 and high of $153.41. The stock has beta of 1, which indicates same level of volatility to stock market. The company is scheduled to release next quarter earnings on August 04, 2020. Analysts have average price target of $116.85 for the stock which indicates 6.39 percent downside.

The stock’s most recent analyst rating was evaluated on May 28, 2020 by David Miller of Imperial Capital. The downgrade came at the time while the country was heading towards reopening. The statement concerning the downgrade was due to the businesses being hurt by the corona virus.

Disney has 62.55 percent institutional ownership, a factor most investor look into while investing in a company. The short interest for the company stands at 1.40 percent. Looking into insider transaction, there seems to be no report of insider purchase, while several insider selling is reported on SEC filings.

52 percent of the analysts still believe the stock has more room for uptrend and recommends buy, while only 4 percent suggest selling the stock at the current stock price. As country is reopening, there are hopes that parks and resorts segment will strongly rebound from the recession and will provide additional support for the company.

Disney has rallied almost 30 percent since April and has more room for uptrend. Disney is one of the worst performances on the Dow list this year and has fallen 15 percent so far. Disney’s Shanghai park reopened last month, which would bring more cash. Disney World is also planning to open in July 11, 2020 and Disneyland by July 15, 2020. Other locations such as Hong Kong Disney and Disneyland Paris have not set any dates for the reopening.

Leave a Reply

Your email address will not be published. Required fields are marked *