Walt Disney (NYSE:DIS) Shares Gap Down – Here’s Why

The Walt Disney Company (NYSE:DIS)’s stock price gapped down before the market opened on Thursday . The stock had previously closed at $116.65, but opened at $108.89. Walt Disney shares last traded at $107.21, with a volume of 9,396,586 shares.

Analyst Ratings Changes

Several research analysts have weighed in on the stock. Guggenheim reaffirmed a “buy” rating and set a $140.00 target price on shares of Walt Disney in a research note on Friday. Arete Research upgraded shares of Walt Disney to a “strong sell” rating in a report on Tuesday, October 28th. Jefferies Financial Group dropped their price objective on Walt Disney from $144.00 to $136.00 and set a “buy” rating for the company in a research note on Friday. Morgan Stanley increased their target price on Walt Disney from $120.00 to $140.00 and gave the stock an “overweight” rating in a research note on Monday, August 4th. Finally, Rosenblatt Securities reaffirmed a “buy” rating and issued a $141.00 target price on shares of Walt Disney in a research report on Friday, October 17th. Eighteen equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Walt Disney currently has a consensus rating of “Moderate Buy” and a consensus target price of $134.41.

Walt Disney Stock Performance

The stock has a 50-day moving average price of $112.79 and a 200 day moving average price of $114.41. The firm has a market capitalization of $190.34 billion, a price-to-earnings ratio of 16.59, a P/E/G ratio of 1.45 and a beta of 1.55. The company has a quick ratio of 0.66, a current ratio of 0.72 and a debt-to-equity ratio of 0.32.

Walt Disney (NYSE:DIS) last issued its quarterly earnings results on Thursday, November 13th. The entertainment giant reported $1.11 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.03 by $0.08. Walt Disney had a net margin of 12.22% and a return on equity of 9.67%. The company had revenue of $22.46 billion during the quarter, compared to the consensus estimate of $22.78 billion. During the same quarter in the previous year, the firm earned $1.14 earnings per share. The firm’s quarterly revenue was down .5% on a year-over-year basis. On average, analysts forecast that The Walt Disney Company will post 5.47 EPS for the current year.

Walt Disney Announces Dividend

The company also recently announced a dividend, which will be paid on Wednesday, July 22nd. Stockholders of record on Tuesday, June 30th will be issued a $0.75 dividend. The ex-dividend date of this dividend is Tuesday, June 30th. This represents a dividend yield of 139.0%. Walt Disney’s payout ratio is presently 15.67%.

Institutional Investors Weigh In On Walt Disney

A number of hedge funds and other institutional investors have recently modified their holdings of DIS. Copeland Capital Management LLC purchased a new stake in shares of Walt Disney in the third quarter valued at about $25,000. MJT & Associates Financial Advisory Group Inc. purchased a new stake in Walt Disney in the 1st quarter valued at approximately $26,000. DiNuzzo Private Wealth Inc. grew its holdings in Walt Disney by 82.5% during the 2nd quarter. DiNuzzo Private Wealth Inc. now owns 208 shares of the entertainment giant’s stock valued at $26,000 after buying an additional 94 shares during the last quarter. Strengthening Families & Communities LLC purchased a new position in Walt Disney during the third quarter worth $29,000. Finally, Pilgrim Partners Asia Pte Ltd purchased a new position in Walt Disney during the third quarter worth $33,000. 65.71% of the stock is currently owned by institutional investors and hedge funds.

Walt Disney Company Profile

The Walt Disney Company operates as an entertainment company worldwide. It operates through three segments: Entertainment, Sports, and Experiences. The company produces and distributes film and television video streaming content under the ABC Television Network, Disney, Freeform, FX, Fox, National Geographic, and Star brand television channels, as well as ABC television stations and A+E television networks; and produces original content under the ABC Signature, Disney Branded Television, FX Productions, Lucasfilm, Marvel, National Geographic Studios, Pixar, Searchlight Pictures, Twentieth Century Studios, 20th Television, and Walt Disney Pictures banners.