Walt Disney Co (DIS) Shares Continue to Fall Despite Record Breaking Star Wars Debut

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It appears as if the theme for this week may be ‘Sell The News,’ when talking about shares of Walt Disney Co (NYSE:DIS) stock. Despite the company announcing a record-breaking box office take this weekend for their new film ‘Star Wars: The Force Awakens’, and the film receiving reviews which even may have surprised Disney themselves, shares of the company are continuing to fall this afternoon.

Domestic revenue for ‘Star Wars: The Force Awakens’ came in at around $247 million for the extended weekend. At the same time it appears as if the film also broke global records with a $528 million take at the box office, putting it ahead of ‘Jurassic World’ as having the best opening weekend on record.

While recent news that Disney’s ESPN network has been struggling, certainly hurt the stock, one would think that the benefit from such an incredible weekend at the box office would outweigh the negative view shareholders have on the company following the ESPN reports. It will be interesting to see how shares react over the course of the week. The stock is down 0.97% or $1.04 following the news, hitting $106.68 per share. About 14.98 million shares traded hands or 51.93% up from the average. DIS has declined 2.37% since May 18, 2015 and is downtrending. It has underperformed the S&P500 by 0.10%.

From a total of 20 analysts covering The Walt Disney Company (NYSE:DIS) stock, 11 rate it a “Buy”, 0 a “Sell”, and 9 a “Hold”. This means that 55% of the ratings are positive. The highest target price is $136 while the lowest target price is $10.55. The mean of all analyst targets is $119.30 which is 11.83% above today’s ($106.68) stock price. The Walt Disney Company was the topic of 38 analyst reports since July 24, 2015 according to the firm StockzIntelligence Inc. Goldman Sachs maintained shares on December 15 with a “Neutral” rating. Pivotal Research initiated shares with a”Hold” rating and a $106 target share price in their report from an October 20. Guggenheim downgraded DIS stock in a recent report from November 16 to a “Neutral” rating. Macquarie Research maintained the rating on September 1. Macquarie Research has a “Outperform” rating and a $122 price target on shares. Finally, Argus Research maintained the stock with a “Buy” rating in a report they issued on a November 9.

The institutional sentiment increased to 1.33 in Q2 2015. It’s up 0.15, from 1.18 in 2015Q2. The ratio improved, as 101 funds sold all their Walt Disney Co shares they owned while 548 reduced their positions. 116 funds bought stakes while 748 increased their total positions. Institutions now own 1.00 billion shares which is 2.38% less than the previous share count of 1.03 billion in 2015Q2.

Winch Advisory Services Llc holds 15.54% of its total portfolio in Walt Disney Co, equating to 104,034 shares. Rit Capital Partners Plc owns 509,000 shares representing 12.14% of their total US portfolio. Moreover, Lindsell Train Ltd has 11.54% of their total portfolio invested in the company, equating to 1.65 million shares. The New York-based Klingenstein Fields & Co Llc has a total of 10.54% of their portfolio invested in the stock. Tukman Grossman Capital Management Inc, a California-based fund reported 1.76 million shares owned.

Since March 6, 2015, the stock had 0 buys, and 4 insider sales for a total of $3.27 million in net activity. Chen John S sold 6,000 shares worth $611,822. Braverman Alan N sold 18,473 shares worth $2.19M. Woodford Brent sold 2,000 shares worth $237,000. Matschullat Robert W sold 2,965 shares worth $324,545. The insider Lozano Monica C sold 397 shares worth $43,948.

The Walt Disney Company, incorporated on July 28, 1995, together with its subsidiaries and affiliates, is a diversified international family entertainment and media enterprise with five business divisions: media networks, parks and resorts, studio entertainment, consumer products and interactive media. The company has a market cap of $178.62 billion. Media Networks comprise an array of broadcast, cable, radio, publishing and digital businesses across two divisions the Disney/ABC Television Group and ESPN Inc. It has 21.77 P/E ratio. Walt Disney Parks and Resorts is a well-known provider of family travel and leisure experiences.

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