Institutional investors are constantly recalibrating their portfolios, and recent filings with the Securities and Exchange Commission reveal significant shifts in holdings of The Walt Disney Company (NYSE:DIS). This dynamic activity underscores the ongoing evaluation of major entertainment stocks by prominent financial entities.
Davis R M Inc., a notable player in the investment landscape, recently disclosed a modest but strategic reduction in its stake in Disney. During the first quarter, the firm decreased its position by 1.2%, offloading 2,709 shares. Despite this slight reduction, Davis R M Inc. retains a substantial investment, holding 216,863 shares of the entertainment giant.
As of its most recent SEC filing, the total value of Davis R M Inc.’s holdings in Walt Disney stood at an impressive $21,404,000. This move by Davis R M Inc. is not isolated, as numerous other institutional investors and hedge funds have also been actively adjusting their exposure to the company, reflecting diverse investment strategies across the market.
For instance, Mpwm Advisory Solutions LLC and MJT & Associates Financial Advisory Group Inc. both established new positions in Walt Disney during recent quarters, acquiring shares worth approximately $27,000 and $26,000 respectively. Conversely, Kessler Investment Group LLC significantly increased its stake by 274.0%, adding 200 shares to now own 273 shares valued at $27,000. Overall, a substantial 65.71% of Disney’s stock is currently controlled by hedge funds and other institutional investors.
The sentiment among equities research analysts towards Walt Disney stock remains largely positive, with several firms adjusting price targets upwards. Loop Capital, UBS Group, Needham & Company LLC, Morgan Stanley, and Guggenheim have all reiterated or upgraded their “buy” or “overweight” ratings, with consensus target prices averaging around $128.70. This widespread optimism among analysts suggests a strong future outlook for the entertainment powerhouse.
Financial metrics further illuminate Disney’s market standing, with the stock opening at $119.56 on a recent Thursday. The company boasts a robust market capitalization of $214.94 billion, coupled with a P/E ratio of 24.45 and a PEG ratio of 1.75. Its beta of 1.56 indicates higher volatility compared to the broader market, while its fifty-day simple moving average of $118.46 and 200-day simple moving average of $107.59 suggest an upward trend.
Walt Disney’s recent quarterly earnings report on May 7th showcased strong performance, with the company reporting earnings per share (EPS) of $1.45, comfortably surpassing analysts’ consensus estimates of $1.21. Revenue also exceeded expectations, reaching $23.62 billion against an estimated $23.15 billion, demonstrating a healthy 7.0% increase year-over-year. Analysts predict continued growth, forecasting $5.47 EPS for the current fiscal year.
Beyond institutional and analyst activity, insider transactions also offer insights into corporate confidence. A notable event involved an EVP selling 1,000 shares of Disney stock in mid-May for over $110,000, reducing their direct ownership slightly. Despite this, a small but significant 0.16% of the stock is held by insiders, aligning their interests with the company’s performance as it continues to operate globally across its Entertainment, Sports, and Experiences segments.
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