Zacks Investment Research Downgrades The Walt Disney Co. (DIS) to Sell
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.”
DIS has been the subject of several other research reports. FBR & Co reissued a “hold” rating on shares of The Walt Disney in a research note on Sunday, September 4th. Piper Jaffray Cos. reissued an “overweight” rating and issued a $120.00 target price on shares of The Walt Disney in a research note on Monday, August 8th. Barclays PLC reissued an “underweight” rating on shares of The Walt Disney in a research note on Friday, September 30th. Jefferies Group reissued a “hold” rating and issued a $92.00 target price on shares of The Walt Disney in a research note on Thursday, September 22nd. Finally, Stifel Nicolaus downgraded shares of The Walt Disney from a “buy” rating to a “hold” rating and set a $110.00 target price for the company. in a research note on Wednesday, July 20th. They noted that the move was a valuation call. Three analysts have rated the stock with a sell rating, fifteen have given a hold rating, fourteen have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. The stock presently has a consensus rating of “Hold” and an average target price of $109.40.
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The Walt Disney (NYSE:DIS) traded down 0.038% on Wednesday, hitting $91.135. 872,204 shares of the stock traded hands. The firm’s 50-day moving average price is $92.68 and its 200-day moving average price is $97.36. The stock has a market cap of $146.46 billion, a price-to-earnings ratio of 16.379 and a beta of 1.25. The Walt Disney has a 12-month low of $86.25 and a 12-month 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, topping the 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 business had revenue of $14.20 billion for the quarter, compared to analyst estimates of $14.16 billion. During the same period in the previous year, the firm earned $1.45 EPS. The business’s revenue for the quarter was up 9.0% compared to the same quarter last year. On average, equities research analysts anticipate that The Walt Disney will post $5.78 EPS for the current fiscal year.
A number of hedge funds and other institutional investors have recently made changes to their positions in DIS. Vanguard Group Inc. raised its position in The Walt Disney by 0.7% in the second quarter. Vanguard Group Inc. now owns 89,587,720 shares of the entertainment giant’s stock worth $8,763,471,000 after buying an additional 633,253 shares during the period. Geode Capital Management LLC raised its position in The Walt Disney by 1.6% in the first quarter. Geode Capital Management LLC now owns 12,328,050 shares of the entertainment giant’s stock worth $1,221,823,000 after buying an additional 191,473 shares during the period. BlackRock Group LTD raised its position in The Walt Disney by 0.6% in the first quarter. BlackRock Group LTD now owns 11,992,291 shares of the entertainment giant’s stock worth $1,190,955,000 after buying an additional 68,155 shares during the period. TIAA CREF Investment Management LLC raised its position in The Walt Disney by 6.5% in the first quarter. TIAA CREF Investment Management LLC now owns 10,992,868 shares of the entertainment giant’s stock worth $1,091,702,000 after buying an additional 674,334 shares during the period. Finally, Fisher Asset Management LLC raised its position in The Walt Disney by 0.6% in the third quarter. Fisher Asset Management LLC now owns 8,722,317 shares of the entertainment giant’s stock worth $809,954,000 after buying an additional 48,266 shares during the period. 57.96% of the stock is owned by institutional investors and hedge funds.
About The Walt Disney
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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