The Walt Disney Co. (DIS Stock) – Battling SAG-AFTRA Strike

• 1 DIS Stock fell to 4.52% in a month, 14.08% in six months, and 14.00% in a year.
• 2 The Walt Disney Co. and other production houses are facing the aftermath of the SAG-AFTRA Strike.

The Walt Disney Co. (NYSE: DIS) performance has been lackluster, the fifth Indiana Jones was a disaster, and DIS Stock fell 4.79% in a week. Indiana Jones: The Dial of Destiny was released with much hype on June 30, but disappointed with its opening weekend collection of just $60 Million. Also, the ongoing SAG-AFTRA strike has caused troubles for the company dropping its share price by 4.3% in the last few trading sessions. 

The Walt Disney Co. (DIS Stock) – Financial Analysis

The Screen Actors Guild and American Federation of Television and Radio Artists (SAG-AFTRA) ‘s ongoing strike has affected numerous media companies’ shares. Such strikes often increase production costs, potentially affecting profitability and cash flow. The strike revolves around pay raises for the performers and sharing of streaming revenue.

Dupont Capital Management Corp. cut its position in Walt Disney by 85.5% in Q1 2023; it sold 17,255 DIS shares, taking the current portfolio to $292k. NewSquare Capital LLC increased its position by 805.9% in Q4, 2023, by adding 274 shares to its existing portfolio of 308 shares worth $27k. Many institutional investors and hedge funds altered their position in the company, indicating its brand power. 

The Walt Disney Co. (NYSE: DIS) – Technical Analysis

At press time, DIS Stock is trading at $86.21 after falling 0.95%; previous close and open were at $87.04 and $86.84, respectively. The 52-week range is from $84.07 to $126.48, indicating that the current level is close to the bottom. With an average volume of 12.10 Million shares, the market cap is $158.28 Billion. 

The trailing twelve-month (ttm) price-to-earnings (P/E) ratio is 38.32, indicating a fairly valued stock. At the same time, the (ttm) earnings per share (EPS) is $2.25, meaning strength. Analysts placed a price target at $121.00 with a 40.0% upside and provided a 2.84 rating for moderate buy. 

Disney reported its last earnings on May 10, 2023, where the reported revenue of $21.815 Billion exceeded the expected value of $21.795 Billion by 0.09%. Compared to the previous quarter, this value soared by 13.33%. At the same time, reported earnings of $0.93 per share failed to beat the estimated value of $0.933 per share by 0.34%. Compared to the previous quarter, earnings fell by 13.89%. 

The (ttm) revenue is $86.98 Billion, revenue per share comes at $47.65, and the year-over-year (YoY) quarterly revenue growth jumped by 13.30%. Gross profit (ttm) was reported at $28.32, and total cash at the end of the most recent quarter (mrq) is $10.4 Billion, while total debt (mrq) is $48.52 Billion. 

The Walt Disney Co. (DIS Stock) – Candle Exploration

Disney shares have been in a downtrend from the previous high achieved in February 2023, as denoted by the stooping trend line—the downward trajectory of EMA’s low value of RSI at 38.23 hints toward a drop. Although the demand zone acts as a solid support, a negative momentum can be seen if the price drops below $83.82.  

If the conditions improve and the price rises, it must fill the gap created just before the previous earnings to rally ahead. However, to do that, the price shall first cross immediate resistance at $95.12 and sustain there for some time. Positive momentum can be seen after the price is above $103.28. 

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