The Walt Disney Company (DIS) Shares: Cheap or Risky?

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The Walt Disney Company (NYSE:DIS) saw an upside of 2.14% to close Monday at $105.69 after adding $2.21 on the day. The 5-day average trading volume is 12,660,180 shares of the company’s common stock. It has gained $105.95 in the past week and touched a new high 4 times within the past 5 days. An average of 13,047,180 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 16,541,385.

DIS’s 1-month performance is 21.45% or $17.68 on its low of $84.07 reached on 12/28/22. The company’s shares have touched a 52-week low of $84.07 and high of $157.50, with the stock’s rally to the 52-week high happening on 01/23/23. YTD, DIS has achieved 21.65% or $18.81 and has reached a new high 10 times. However, the current price is down -32.90% from the 52-week high price.


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Insider Transactions

DIS stock investors last saw insider trading activity on Jan 12.WOODFORD BRENT (EVP, Control, Fin Plan & Tax) most recently sold 18,110 shares at $98.46 per share on Jan 12. This transaction cost the insider $1,783,111. SEVP & Chief Financial Officer, McCarthy Christine M, sold 42,533 shares at a price of $98.46 on Jan 12. Then, on Aug 12, EVP, Control, Fin Plan & Tax WOODFORD BRENT sold 3,000 shares at a price of $119.03 per share. This transaction amounted to $357,090.

Valuation Metrics

DIS stock has a beta of 1.24. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 2.23 while the price-to-book (PB) in the most recent quarter is 2.03, with the price to cash flow ratio at 172.95.

The Walt Disney Company’s quick ratio for the period ended September 29 was 0.90, with the current ratio over the same period at 1.00. As well, the company’s long term debt to equity for the quarter ending September 29 was 0.48, while the total debt to equity was 0.51. In terms of profitability, the gross margin trailing 12 months is 34.20%. The firm’s gross profit as reported stood at $28.32 billion against revenue of $82.72 billion.

Earnings Surprise

For the quarterly period ending September 29 this year, Net income and sales went down compared to those figures reported in the previous quarter. Net income shrunk -477.36% to $159.0 million, while revenue of $1.41 billion was -786.16% off the previous quarter. Analysts expected DIS to announce $0.55 per share in earnings in its latest quarter, but it posted $0.3, representing a -45.50% surprise. EBITDA for the quarter stood at more than $1.86 billion. DIS stock balance sheet for the quarter ending September 29 shows that total liabilities totaled 104.75 billion, with total debt at $52.26 billion. Shareholders hold equity totaling $1.82 billion.

Let’s look briefly at The Walt Disney Company (DIS) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 23 January was 83.15% to suggest the stock is trending Overbought, with historical volatility in this time period at 24.68%.

The stock’s 5-day moving average is $101.44, reflecting a +6.33% or $6.29 change from its current price. DIS is currently trading +21.59% above its 20-day SMA, -6.91% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +5.80% and SMA200 by-22.07%.

Stochastic %K and %D was 95.09% and 92.05% and the average true range (ATR) pointed at 2.78. The RSI (14) points at 73.93%, while the 14-day stochastic is at 98.54% with the period’s ATR at 2.81. The stock’s 9-day MACD Oscillator is pointing at 2.94 and 5.62 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for The Walt Disney Company (NYSE: DIS), Morgan Stanley reiterated its an Overweight rating for the company but lifted their price target by $125 to $115. Analysts offering their rating for DIS stock have a consensus rating for the stock as Buy. Currently, 0 brokerage advisors rate DIS as a “sell,”, while 5 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 1 rates the stock as overweight while 23 have offered a “buy” rating.

What is DIS’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $94.00 and a high of $145.00, with their median price target at $119.00. Looking at these predictions, the average price target given by analysts is for The Walt Disney Company (DIS) stock is $118.40.

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