Revealing a significant insider sell on May 13, BRENT WOODFORD, EVP at Walt Disney DIS, as per the latest SEC filing.
What Happened: WOODFORD opted to sell 1,000 shares of Walt Disney, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The transaction’s total worth stands at $110,845.
In the Wednesday’s morning session, Walt Disney‘s shares are currently trading at $111.09, experiencing a down of 0.26%.
Discovering Walt Disney: A Closer Look
Disney operates in three global business segments: entertainment, sports, and experiences. Entertainment and experiences both benefit from the firm’s ownership of iconic franchises and characters. Entertainment includes the ABC broadcast network, several cable television networks, and the Disney+ and Hulu streaming services. Within the segment, Disney also engages in movie and television production and distribution, with content licensed to movie theaters, other content providers, or, increasingly, kept in-house for use on Disney’s own streaming platform and television networks. The sports segment houses ESPN and the ESPN+ streaming service. Experiences contains Disney’s theme parks and vacation destinations, and also benefits from merchandise licensing.
Financial Milestones: Walt Disney’s Journey
Revenue Growth: Walt Disney’s revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2025, the company achieved a revenue growth rate of approximately 6.96%. This indicates a substantial increase in the company’s top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Communication Services sector.
Interpreting Earnings Metrics:
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Gross Margin: The company faces challenges with a low gross margin of 37.3%, suggesting potential difficulties in cost control and profitability compared to its peers.
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Earnings per Share (EPS): Walt Disney’s EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.81.
Debt Management: With a below-average debt-to-equity ratio of 0.41, Walt Disney adopts a prudent financial strategy, indicating a balanced approach to debt management.
Valuation Overview:
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Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 22.73, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
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Price to Sales (P/S) Ratio: The P/S ratio of 2.16 is lower than the industry average, implying a discounted valuation for Walt Disney’s stock in relation to sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 13.26, Walt Disney presents a potential value opportunity, as investors are paying less for each unit of EBITDA.
Market Capitalization Highlights: Above the industry average, the company’s market capitalization signifies a significant scale, indicating strong confidence and market prominence.
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Unmasking the Significance of Insider Transactions
Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.
When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
A Closer Look at Important Transaction Codes
Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Walt Disney’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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