2.01M Reasons To Be Bullish On Walt Disney Stock

JAMES GORMAN, Board Member at Walt Disney (NYSE:DIS), disclosed an insider purchase on December 15, based on a new SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Monday unveiled that GORMAN made a notable purchase of 18,000 shares of Walt Disney, valuing at $2,013,942.

During Tuesday's morning session, Walt Disney shares up by 1.98%, currently priced at $112.68.

About Walt Disney

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 the ESPN family of TV networks and streaming services. Experiences contains Disney's theme parks, cruises, and vacation destinations and also engages in merchandise licensing.

Walt Disney's Financial Performance

Revenue Growth: Walt Disney's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2025, the company experienced a revenue decline of approximately -0.49%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Communication Services sector.

Key Profitability Indicators:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 37.6%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Walt Disney's EPS is below the industry average. The company faced challenges with a current EPS of 0.73. This suggests a potential decline in earnings.

Debt Management: Walt Disney's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.41.

Valuation Overview:

• Price to Earnings (P/E) Ratio: Walt Disney's P/E ratio of 16.13 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a P/S ratio of 2.12 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 12.35, Walt Disney presents an attractive value opportunity.

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

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Uncovering the Importance of Insider Activity

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Transaction Codes Worth Your Attention

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals 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.