Zacks Investment Research cut shares of Walt Disney Company (The) (NYSE:DIS) from a hold rating to a sell rating in a research note issued to investors on Tuesday.

According to Zacks, “Disney shares have lagged the industry in the past three months, primarily due to ongoing concerns regarding ESPN future and recent havoc at its Lucasfilm division due to the delay in the release of Star Wars: Episode IX. Identical to performances in the past few quarters, ESPN disappointed in the third quarter again. Further, the stock recently came under pressure after CEO cautioned that fiscal 2017 earnings are likely to be similar to last year. However, the company’s decision to terminate distribution agreement with Netflix for subscription streaming and having its own streaming services – one for Disney and Pixar brands and another for ESPN followers is likely to be a driving factor in the long run. Further, in an effort to attract online viewers, Disney, which had earlier acquired 33% stake BAMTech, announced its intention to acquire another 42% stake in the firm. However, Parks & Resorts business continues to bode well.”

A number of other analysts have also recently issued reports on the company. Bank of America Corporation reissued a buy rating and set a $120.00 target price (down from $125.00) on shares of Walt Disney Company (The) in a research note on Friday, September 8th. FBR & Co reissued a hold rating and set a $97.00 target price on shares of Walt Disney Company (The) in a research note on Friday, September 8th. Guggenheim reissued a buy rating and set a $122.00 target price (down from $128.00) on shares of Walt Disney Company (The) in a research note on Wednesday, July 12th. UBS AG reissued a buy rating and set a $126.00 target price on shares of Walt Disney Company (The) in a research note on Tuesday, September 5th. Finally, Royal Bank Of Canada reissued a buy rating and set a $130.00 target price on shares of Walt Disney Company (The) in a research note on Friday, July 14th. Five investment analysts have rated the stock with a sell rating, fourteen have issued a hold rating and nineteen have given a buy rating to the stock. The company has a consensus rating of Hold and an average price target of $113.92.

Walt Disney Company (NYSE:DIS) traded down 0.04% on Tuesday, hitting $100.07. 4,360,212 shares of the stock traded hands. The stock has a market capitalization of $154.46 billion, a P/E ratio of 17.75 and a beta of 1.40. Walt Disney Company has a 12-month low of $90.32 and a 12-month high of $116.10. The company’s 50 day moving average price is $99.91 and its 200-day moving average price is $106.38.

Walt Disney Company (The) (NYSE:DIS) last announced its quarterly earnings results on Tuesday, August 8th. The entertainment giant reported $1.58 earnings per share for the quarter, beating analysts’ consensus estimates of $1.53 by $0.05. The business had revenue of $14.24 billion for the quarter, compared to the consensus estimate of $14.44 billion. Walt Disney Company (The) had a net margin of 16.22% and a return on equity of 19.69%. Walt Disney Company (The)’s revenue for the quarter was down .3% on a year-over-year basis. During the same period last year, the company posted $1.62 EPS. Analysts predict that Walt Disney Company will post $5.81 EPS for the current year.

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In other news, Director Maria Elena Lagomasino bought 976 shares of the stock in a transaction dated Thursday, August 10th. The shares were bought at an average cost of $102.34 per share, with a total value of $99,883.84. Following the completion of the transaction, the director now directly owns 7,513 shares of the company’s stock, valued at $768,880.42. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 0.38% of the stock is owned by corporate insiders.

A number of institutional investors have recently made changes to their positions in the stock. Janus Henderson Group PLC grew its stake in Walt Disney Company (The) by 929.6% in the 2nd quarter. Janus Henderson Group PLC now owns 5,410,942 shares of the entertainment giant’s stock valued at $574,907,000 after purchasing an additional 4,885,398 shares during the period. AJO LP grew its stake in Walt Disney Company (The) by 12,331.6% in the 2nd quarter. AJO LP now owns 3,300,335 shares of the entertainment giant’s stock valued at $350,661,000 after purchasing an additional 3,273,787 shares during the period. Vanguard Group Inc. grew its stake in Walt Disney Company (The) by 2.2% in the 2nd quarter. Vanguard Group Inc. now owns 98,803,049 shares of the entertainment giant’s stock valued at $10,497,824,000 after purchasing an additional 2,131,932 shares during the period. Arrowstreet Capital Limited Partnership grew its stake in Walt Disney Company (The) by 247.9% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 2,644,700 shares of the entertainment giant’s stock valued at $280,999,000 after purchasing an additional 1,884,600 shares during the period. Finally, Nordea Investment Management AB grew its stake in Walt Disney Company (The) by 48.7% in the 2nd quarter. Nordea Investment Management AB now owns 5,313,513 shares of the entertainment giant’s stock valued at $564,561,000 after purchasing an additional 1,740,128 shares during the period. Institutional investors and hedge funds own 61.38% of the company’s stock.

About Walt Disney Company (The)

The Walt Disney Company is an entertainment company. The Company operates in four business segments: Media Networks, Parks and Resorts, Studio Entertainment, and Consumer Products & Interactive Media. The media networks segment includes cable and broadcast television networks, television production and distribution operations, domestic television stations, and radio networks and stations.

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Analyst Recommendations for Walt Disney Company (The) (NYSE:DIS)

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