The Walt Disney Company (DIS) Stock: Is This Service Stock Worth Your Attention?

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The Walt Disney Company (DIS) is trending up in the market today. The stock, one that is focused on the service sector, is presently trading at $108.66 after climbing -1.21% so far today. In terms of service stocks, there are a number of aspects that have the potential to cause gains in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent stories associated with DIS:

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Mar-21-19 07:57PM Fox 2000, arm behind ‘Hidden Figures,’ to close under Disney
06:47PM New York Times CEO warns publishers ahead of Apple news launch
02:01PM The Best Way to Join the Netflix Stock Breakout
01:27PM Buy Apple (AAPL) Stock Up 22% in 2019 Before Streaming Video Launch?
12:51PM Senator contradicts Cuomo: NY will keep $420 million film tax credit

However, when making a decision to invest, prospective investors should focus on far more than news, especially in the ever incredibly complex service space. Here’s what’s happing when it comes to The Walt Disney Company.

Recent Trends From DIS

While a gain in a single session, like the gain that we’re seeing from The Walt Disney Company might lead to fear in some investors, that alone should not be the basis of a decision to, or not to, buy a company’s stock. It’s always smart to look at trends experienced by the stock beyond a single trading session. When it comes to DIS, here are the trends that we have seen:

  • Past 7 Days – Over the past 5 trading sessions, DIS has generated a price change amounting to -5.08%.
  • Past 30 Days – The ROI from The Walt Disney Company over the last month works out to -4.42%.
  • Past Three Months – Throughout the past 3 months, the stock has generated a return that works out to -0.72%
  • Bi-Annually – Over the past six months, we’ve seen a performance that amounts to -0.79% from the company.
  • YTD – Since the the first trading session of this year DIS has resulted in a return on investment of -0.90%.
  • Full Year – Lastly, over the past full year, investors have seen performance of 7.21% out of DIS. Throughout this period, the stock has traded at a high of -9.60% and a low of 11.24%.

Ratios Of Note

Looking at a few key ratios associated with a stock can provide prospective traders a look of how dangerous and/or potentially profitable a an investment option may be. Here are a few of the important ratios to consider when digging into DIS.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors believe that the stock is going to head up. In general, strong service stocks tend to carry a lower short ratio. On the other hand, we also tend to see quite a few short squeezes in the industry. Nonetheless, in regard to The Walt Disney Company, it’s short ratio clocks in at 3.63.

Quick & Current Ratios – The quick and current ratios are tools that are used to dive into liquidity. Essentially, they measure whether or not a company can cover its debts when they mature based on current assets or quick assets. do have strong current and quick ratios. When it comes to DIS, the quick and current ratios come to 0.90 and 1.00 respectively.  

Book To Share Value – The book to share value ratio compares the the share price to the book value of assets owned by the company. In this case, the book to share value ratio equates to 33.77.

Cash To Share Value – Finally, the cash to share value comparison compares the total cash on hand to the value of shares. In this case, the cash to share value comes to 2.99.

Smart Money Follows Big Money

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in DIS, here’s what we’re seeing:

  • Institutions – At the moment, institutional investors own 65.90% of The Walt Disney Company. However, it is important to mention that the ownership held by institutions has moved in the amount of 1.58% over the last 3 months.
  • Insiders – When it comes to insiders, those close to the situation currently own 0.10% of The Walt Disney Company. Their ownership of the company has seen a change of -6.21% in the last 3 months.

How Analysts Feel About The Walt Disney Company

Although it’s not a good idea to blindly follow the opinions of analysts, it is a good idea to use their analysis to validate your own thoughts when it comes to making investment decisions in the service space. Below you’ll find the recent moves that we have seen from analysts as it relates to DIS.

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Nov-27-18 Upgrade Imperial Capital In-line → Outperform $113 → $129
Oct-19-18 Upgrade Barclays Equal Weight → Overweight
Aug-09-18 Reiterated Imperial Capital In-line $108 → $112
Aug-08-18 Reiterated Imperial Capital In-line $108 → $112
Aug-08-18 Reiterated B. Riley FBR Buy $123 → $121

What We’ve Seen In earnings results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $7.20. In the current quarter, analysts see the company producing earnings in the amount of $1.59. Over the last 5 years, DIS has generated revenue in the amount of $5.70% with earnings coming in at 16.40%. On a quarter over quarter basis, earnings have seen movement of 0.30% and revenue has seen movement of -0.30%.

A Look At Share Counts

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 1.49B shares of The Walt Disney Company outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, DIS has a float of 1.49B.

It’s also important to look at the short percentage of the float. After all, when a large portion of the float available for trading is sold short, the overall feeling among investors is that the company is headed for a deep dive. As far as DIS, the percentage of the float that is sold short is 2.36%. Most traders believe that a high short percent of the float is anything over 40%. Through my work, I’ve found that a short percent of the float over 26% is usually a a play that could prove to be very risky.

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