The Walt Disney Company (NYSE: DIS) stock fell -2.86% on Friday to $104.49 against a previous-day closing price of $107.57. With 9.71 million shares changed hands, the volume of the stock remained lighter than its average volume of 11.07 million shares. During the session, the Entertainment company that operates in wider Communication Services sector, reached to the highest price of $108.04 whereas the lowest price it dropped to was $104.49. The 52-week range on DIS shows that it touched its highest point at $182.23 and its lowest point at $90.23 during that stretch. It currently has a 1-year price target of $143.76. Beta for the stock currently stands at 1.20.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DIS was down-trending over the past week, with a drop of -7.12%, but this was down by -9.88% over a month. Three-month performance surged to 11.75% while six-month performance fell -25.42%. The stock lost -38.96% in the past year, while it has lost -32.54% so far this year. A look at the trailing 12-month EPS for DIS yields 1.75 with Next year EPS estimates of 5.42. For the next quarter, that number is 0.62. This implies an EPS growth rate of 170.70% for this year and 40.34% for next year. EPS is expected to grow by 37.43% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -28.00%.
Float and Shares Shorts:
At present, 1.82 billion DIS shares are outstanding with a float of 1.82 billion shares on hand for trading. On Jul 14, 2022, short shares totaled 20.89 million, which was 1.15% higher than short shares on Jun 14, 2022. In addition to Mr. Robert A. Chapek as the firm’s CEO & Director, Ms. Christine Mary McCarthy serves as its Sr. EVP & CFO.
Through their ownership of 64.94% of DIS’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 8.64% of DIS, in contrast to 33.79% held by mutual funds. Shares owned by individuals account for 29.93%. As the largest shareholder in DIS with 7.38% of the stake, The Vanguard Group, Inc. holds 134,497,371 shares worth 134,497,371. A second-largest stockholder of DIS, BlackRock Fund Advisors, holds 74,755,733 shares, controlling over 4.10% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in DIS, holding 71,320,046 shares or 3.91% stake. With a 2.96% stake in DIS, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 53,934,059 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.23% of DIS stock, is the second-largest Mutual Fund holder. It holds 40,651,734 shares valued at 4.56 billion. Fidelity 500 Index Fund holds 1.07% of the stake in DIS, owning 19,557,957 shares worth 2.19 billion.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DIS since 29 analysts follow the stock currently. There are 21 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 7 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With DIS analysts setting a high price target of $160.00 and a low target of $120.00, the average target price over the next 12 months is $139.56. Based on these targets, DIS could surge 53.12% to reach the target high and rise by 14.84% to reach the target low. Reaching the average price target will result in a growth of 33.56% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. DIS will report FY 2022 earnings on 11/10/2022. Analysts have provided yearly estimates in a range of $4.15 being high and $3.55 being low. For DIS, this leads to a yearly average estimate of $3.86. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. The Walt Disney Company surprised analysts by $0.12 when it reported $1.09 EPS against a consensus estimate of $0.97. The surprise factor in the prior quarter was -$0.11. Based on analyst estimates, the high estimate for the next quarter is $0.91 and the low estimate is $0.31. The average estimate for the next quarter is thus $0.63.
Summary of Insider Activity:
Insiders traded DIS stock several times over the past three months with 13 Buys and 3 Sells. In these transactions, 13,946 shares were bought while 3,498 shares were sold. The number of buy transactions has increased to 99 while that of sell transactions has risen to 61 over the past year. The total number of shares bought during that period was 945,283 while 485,925 shares were sold.