What's Going On With Disney Stock?

Walt Disney Co DIS shares are trading higher Monday. Blackwells Capital released an investor presentation and Morgan Stanley put out a positive update. Here’s what you need to know.

What Happened: Blackwells Capital on Monday released a full investor presentation titled “The Future of Disney,” which explores Disney’s recent underperformance and outlines the case for collaborative and additive change.

The activist investor is urging Disney shareholders to vote for its own board nominees  Jessica Schell, Craig Hatkoff and Leah Solivan at Disney’s 2024 Annual Meeting of Shareholders on April 3.

“Disney’s current Board includes several personal friends of Mr. Iger, six directors with full-time jobs as CEOs of major companies, five directors with no other independent board experience, three directors drawn from the Council of Foreign Relations and five directors with overlapping directorships,” said Jason Aintabi, chief investment officer of Blackwells Capital.

“Disney’s Board lacks critical bandwidth and expertise in content, media, technology and governance best-practices, and would greatly benefit from the perspectives and experience our director candidates contribute.”

Morgan Stanley analyst Benjamin Swinburne maintained Disney with an Overweight rating and raised the price target from $110 to $135.

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DIS Stock Forecast In 2030

Interest rates play an important role in the equity markets. When rates are high, it can discount the present value of future cash flows, which can put pressure on growth stocks such as Walt Disney. This is because the majority of Walt Disney's profits are expected to be realized in the future. Higher interest rates increase a company's cost of capital. If you're curious about learning about stockholder equity and how the balance sheet is evaluated, check out the resources here.

Long-term investors should also look at a company's historical revenue growth and decide whether they think it is likely to increase, slow down or remain stagnant. Walt Disney's revenue has grown at an average rate of 5.51% annually over the past 5 years.

Walt Disney operates in the Communication Services sector and has a forward P/E of 24.04, suggesting it is considered a value stock. Investors in growth stocks will generally focus on the company's future plans and industry growth, while value investors will see stable revenue streams and dividend growth.

DIS Price Action: Disney shares were up 1.01% at $113.16 at the time of publication, according to Benzinga Pro.

Photo: Shutterstock.