The Walt Disney Co. (DIS) Downgraded to Sell at Zacks Investment Research
The Walt Disney Co. (NYSE:DIS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Wednesday.
According to Zacks, “Disney’s primary cash cow, ESPN, has been under immense pressure as the Pay-TV landscape continues to change owing to migration of subscribers to online TV. Waning subscriptions will have a telling effect on the network’s ad revenues. Falling subscriber base and higher programming costs of these businesses have been a cause of worry for quite some time now. However, if we go by speculations ESPN is planning to sell its own streaming live TV package directly to customers. In an effort to attract online viewers and bring back the golden days of ESPN, the company has inked a deal with video streaming, data analytics as well as commerce management company BAMTech. On the other hand, sturdy movie business due to recent blockbusters and strong performance of its Parks & Resorts division continues to provide cushion to the stock. Disney is in the process of rolling out more themed attractions in parks and resorts.”
Other equities analysts also recently issued reports about the stock. Morgan Stanley reiterated a “hold” rating on shares of The Walt Disney in a report on Sunday, July 17th. Royal Bank Of Canada restated a “hold” rating on shares of The Walt Disney in a research note on Monday, June 27th. JPMorgan Chase & Co. restated an “overweight” rating and issued a $118.00 price target on shares of The Walt Disney in a research note on Saturday, August 13th. BMO Capital Markets restated a “market perform” rating and issued a $90.00 price target (down from $95.00) on shares of The Walt Disney in a research note on Monday. Finally, Vetr downgraded shares of The Walt Disney from a “buy” rating to a “hold” rating and set a $101.25 price target on the stock. in a research note on Thursday, July 7th. Three analysts have rated the stock with a sell rating, fifteen have issued a hold rating, fourteen have assigned a buy rating and one has given a strong buy rating to the company. The stock has an average rating of “Hold” and an average target price of $109.40.
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Shares of The Walt Disney (NYSE:DIS) opened at 91.17 on Wednesday. The firm has a 50-day moving average of $92.68 and a 200 day moving average of $97.36. The firm has a market capitalization of $146.52 billion, a price-to-earnings ratio of 16.39 and a beta of 1.25. The Walt Disney has a 52-week low of $86.25 and a 52-week high of $120.65.
The Walt Disney (NYSE:DIS) last released its quarterly earnings data on Tuesday, August 9th. The entertainment giant reported $1.62 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.61 by $0.01. The Walt Disney had a net margin of 16.48% and a return on equity of 19.98%. The firm had revenue of $14.20 billion for the quarter, compared to the consensus estimate of $14.16 billion. During the same period in the previous year, the company earned $1.45 earnings per share. The company’s quarterly revenue was up 9.0% on a year-over-year basis. Analysts predict that The Walt Disney will post $5.78 EPS for the current year.
A number of institutional investors have recently modified their holdings of the stock. Thomas J. Herzfeld Advisors Inc. bought a new position in shares of The Walt Disney during the second quarter valued at $103,000. Balentine LLC boosted its position in shares of The Walt Disney by 365.8% in the second quarter. Balentine LLC now owns 1,076 shares of the entertainment giant’s stock valued at $105,000 after buying an additional 845 shares during the period. Krilogy Financial LLC boosted its position in shares of The Walt Disney by 5.0% in the second quarter. Krilogy Financial LLC now owns 1,292 shares of the entertainment giant’s stock valued at $126,000 after buying an additional 61 shares during the period. Cordasco Financial Network boosted its position in shares of The Walt Disney by 149.8% in the second quarter. Cordasco Financial Network now owns 1,501 shares of the entertainment giant’s stock valued at $147,000 after buying an additional 900 shares during the period. Finally, Opera Trading Capital bought a new position in shares of The Walt Disney during the first quarter valued at $158,000. Institutional investors and hedge funds own 57.96% of the company’s stock.
The Walt Disney Company Profile
The Walt Disney Company is a diversified entertainment company. The Company’s business segments include Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive. The Media Networks segment includes cable and broadcast television networks, television production operations, television distribution, domestic television stations, and radio networks and stations.
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