Insider Activity Report: The Walt Disney Company (DIS)

James Gorman, a director at The Walt Disney Company (DIS), recently bought 20,000 shares. The buy increased the director’s stake by over 1,000%, and came to a total cost of $2.1 million.

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  • This is the first insider buy at Disney since another director bought 1,078 shares for just over $99,900 back in December 2023. Otherwise, company insiders have been modest sellers of shares, with executives typically selling following the exercise of stock options.

    Overall, Disney insiders own just under 0.01% of shares.

    The media conglomerate is up 15% over the past year, lagging the overall stock market. But it’s fared better than other media companies.

    Their most recent earnings suggest a slowdown in spending at theme parks, but streaming services are finally nearing a profit.

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  • Disney is an industry leader for family entertainment, and its intellectual properties are currently valued at 22 times forward earnings.

    Action to take: Disney shares fell slightly following earnings, but could be on track for a longer-term trend higher in the coming months.

    Long-term investors may want to buy a partial stake now, and use any further weakness to add to that position. At current prices, Disney pays a 0.8% dividend.

    For traders, the August $115 calls, last trading for about $2.35, could see mid-double-digit returns on a continued long-term uptrend in shares in the next three months.

     

    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.

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