As of the most recent Form 13F filing with the Securities and Exchange Commission, First Trust Advisors LP has increased its holdings in The Walt Disney Company (NYSE:DIS) by 42.7% during the fourth quarter. The fund now owns a total of 84,739 shares worth $7,362,000. This surge in buying has undoubtedly caught the attention of many investors who are closely monitoring any significant moves being made by major investment firms.
Disney is a multifaceted media conglomerate that operates in two main segments; the Disney Media and Entertainment Distribution (DMED) and Disney Parks, Experiences and Products (DPEP). While DMED encompasses global film and episodic television content production and distribution activities, DPEP is responsible for theme parks, resorts and consumer products.
The financials revealed by First Trust Advisors LP’s Form 13F might seem like an impressive move to some, but they pale in comparison to last month’s news of EVP Brent Woodford selling over a thousand shares for more than $108 thousand. Even though he continues to hold stocks valued at over $2 million, this sale might be seen as an ominous sign for prospective investors.
Despite all these developments surrounding the company’s insiders and external investors alike, it is undeniable that Disney remains one of the most significant corporations worldwide. With its ubiquitous influence on pop culture spanning almost an entire century coupled with innovative expansion strategies pushing the boundaries of experiential entertainment, there seems to be no slowing down for Mickey Mouse’s kingdom.
However, it would be wise to keep a close eye on any significant movements by major investment firms such as First Trust Advisors LP when it comes to Disney’s stock values. While insider sales are common in companies with a long-standing history such as Disney – especially given its traditional ties with senior management – unusual shifts can signify risk factors for smaller-scale or individual investors looking to dip their toes into DIS territory.
As of May 26, 2023, we can only wait and see what comes next for Disney and its shareholders. In the meantime, let us watch closely while Mickey Mouse dominates the pop culture landscape once more!
Changes in Holdings and Ratings of The Walt Disney Company
The Walt Disney Company (DIS) has recently seen changes in the holdings of various hedge funds and institutional investors, according to recent reports. Marks Group Wealth Management Inc, for instance, increased its shares in the entertainment giant by 2.8%, now owning 3,449 shares valued at $300,000 after acquiring an additional 94 shares in Q4 of last year. Boston Common Asset Management LLC and Encompass Wealth Advisors LLC each grew their stakes by 1.3% and 2.2%, respectively, while South Street Advisors LLC boosted its share by 2.1% in the same period. In Q1 this year, Carolinas Wealth Consulting LLC raised its stake by 2.9%. Currently, these investors hold approximately 62.22% of DIS’s stock.
In addition to these changes in ownership, the company has been subject to research analyst reports, with varying ratings given to its stock. Rosenblatt Securities raised their price target from $120 to $129 with a “buy” rating last February; Guggenheim lowered their target price from $140 to $130 but maintained a “buy” rating on the stock; Macquarie dropped their rating from “outperform” to “neutral” while also dropping their price target from $125 to $103 last May; Wolfe Research downgraded DIS’s stock from “outperform” to “peer perform”; JPMorgan Chase & Co issued an “overweight” rating while placing a price target of $135 on the stock.
The Walt Disney Company is involved across different segments within entertainment and media worldwide through two distinct sets: Disney Media and Entertainment Distribution (DMED) and Disney Parks, Experiences and Products (DPEP). DMED oversees film and TV content production as well as global distribution activities.
On Friday, DIS stocks opened at $88.14 with a market capitalization of $161.06 billion with a price-to-earnings ratio of 39.17 and a beta of 1.29. The company’s fifty-two week low stands at $84.07 while its high is $126.48. The Walt Disney Company had reported $0.93 earnings per share (EPS) for Q2 in May 2023, beating consensus estimates and topping last year’s figures, where it reported EPS of $1.08.
Given the current trends, shareholders are likely to continue assessing with keenness DIS’s stock performance over the next few quarters in view of increasing competition within the entertainment industry and the looming effects of wider macroeconomic issues affecting consumer spending patterns globally, among other factors that may affect DIS’s financial results in time to come.
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