Woodley Farra Manion Portfolio Management Inc. has made a significant investment in The Walt Disney Company (NYSE:DIS), acquiring a new position in the entertainment giant’s shares during the first quarter. This move, detailed in their recent 13F filing with the SEC, reflects a strategic decision to increase exposure to Disney’s diverse portfolio of assets. The acquisition, valued at approximately $65.12 million, positions Disney as a notable holding within Woodley Farra Manion’s portfolio.
This article delves into the details of Woodley Farra Manion’s investment, examining the broader context of institutional ownership in Disney and recent analyst ratings. We will explore Disney’s financial standing, including recent earnings reports and key metrics, to provide a comprehensive overview of the company’s current position and future prospects. Additionally, we will touch upon recommended stories and investing tools relevant to Disney and the broader market.
Woodley Farra Manion’s Strategic Investment in Disney
Woodley Farra Manion Portfolio Management Inc.’s acquisition of 659,777 shares of The Walt Disney Company (NYSE:DIS) represents a significant bet on the entertainment giant’s future. Valued at approximately $65,120,000, this new position makes Disney the 14th largest holding in Woodley Farra Manion’s portfolio, comprising about 3.2% of their total investments.
This move underscores Woodley Farra Manion’s confidence in Disney’s long-term growth potential, especially considering Disney’s vast array of assets, including theme parks, movie studios, and streaming services. The investment aligns with a broader trend of institutional investors recognizing the value and resilience of Disney’s brand in a dynamic entertainment landscape.
Institutional Investor Activity in Disney
Woodley Farra Manion isn’t the only firm adjusting its stake in Disney. Other hedge funds and institutional investors have also been actively modifying their positions, indicating a widespread reassessment of Disney’s value and future prospects. Waterloo Capital L.P. increased its holdings by 3.2% in the fourth quarter, now owning 3,138 shares valued at $349,000. Quadrant Capital Group LLC also grew its position by 0.4% during the same period, holding 22,658 shares valued at $2,523,000.
Acorns Advisers LLC and Allegheny Financial Group have also increased their stakes in Disney, signaling a bullish sentiment among institutional investors. These moves reflect a collective belief in Disney’s ability to navigate the evolving media landscape and deliver long-term value to shareholders. Overall, institutional investors and hedge funds now own approximately 65.71% of Disney’s stock, highlighting the significant influence of these entities on the company’s performance.
Insider Transactions: Brent Woodford’s Sale
While institutional investors are increasing their positions, it’s worth noting that some insiders are making moves of their own. Brent Woodford, Executive Vice President of Disney, sold 1,000 shares of the company’s stock in a transaction dated May 13th. The shares were sold at an average price of $110.84, totaling $110,840.00.
Following this sale, Woodford directly owns 46,831 shares in the company, valued at $5,190,748.04. This transaction represents a 2.09% decrease in their position. While insider sales can sometimes raise concerns, they are not necessarily indicative of negative sentiment. It’s essential to consider the context and overall trend of insider activity when evaluating the significance of such transactions.
Disney’s Stock Performance and Financial Health
On Thursday, Disney’s stock traded down $0.46, reaching $119.08. Approximately 7,171,494 shares changed hands, compared to its average volume of 6,441,322. The company exhibits a debt-to-equity ratio of 0.34, a current ratio of 0.67, and a quick ratio of 0.61. Disney’s 50-day moving average stands at $118.46, while its 200-day moving average is $107.59.
The company has a market capitalization of $214.08 billion, a P/E ratio of 24.35, a price-to-earnings-growth ratio of 1.75, and a beta of 1.56. Disney’s 12-month low is $80.10, and its 12-month high is $124.69. These metrics provide a snapshot of Disney’s financial stability and growth potential, which are crucial factors for investors to consider.
Disney’s Recent Earnings Report
Disney’s latest earnings report, released on Wednesday, May 7th, revealed positive results. The entertainment giant reported an EPS of $1.45 for the quarter, surpassing analysts’ consensus estimates of $1.21 by $0.24. The company’s revenue for the quarter reached $23.62 billion, exceeding analysts’ expectations of $23.15 billion. Disney’s net margin was 9.47%, and its return on equity was 9.99%.
The company’s quarterly revenue increased by 7.0% year-over-year. During the same quarter of the previous year, Disney posted an EPS of $1.21. Equities research analysts anticipate that The Walt Disney Company will post an EPS of 5.47 for the current year. These figures highlight Disney’s strong financial performance and its ability to generate value for shareholders.
Analyst Ratings and Recommendations
Analysts’ ratings provide valuable insights into Disney’s potential. Wolfe Research upgraded Disney from a “peer perform” rating to an “outperform” rating, setting a $112.00 target price. Wall Street Zen lowered Disney from a “strong-buy” rating to a “buy” rating. Rosenblatt Securities increased their price objective from $135.00 to $140.00, maintaining a “buy” rating. Citigroup raised their target price from $125.00 to $140.00, also maintaining a “buy” rating.
Guggenheim upped their price target from $120.00 to $140.00, reaffirming a “buy” rating. Currently, five analysts recommend holding the stock, nineteen recommend buying, and one recommends a strong buy. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $128.70. These ratings reflect a generally positive outlook on Disney’s future performance.
Conclusion: Key Takeaways for Investors
Woodley Farra Manion’s new investment in The Walt Disney Company signals confidence in the entertainment giant’s long-term prospects. This move aligns with broader institutional investor activity, as many firms adjust their positions to capitalize on Disney’s diverse assets and brand resilience. While insider transactions and stock fluctuations offer additional layers of insight, the overall sentiment remains positive, with analysts forecasting continued growth and profitability.
For FYM News readers, understanding these trends is crucial for making informed investment decisions. By considering the factors driving institutional investments and analyst recommendations, readers can gain a more comprehensive view of Disney’s potential and navigate the market with greater confidence. Keep an eye on future developments and stay informed about the ever-evolving entertainment landscape.
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