A spike in coronavirus cases in California is forcing Disney to hold off on reopening parks and resorts in the state
In light of the recent uptick in COVID-19 cases in the state, Walt Disney Co (NYSE:DIS) announced it would delay the reopening
of its theme parks and resort hotels in California. The parks were scheduled to reopen on July 17, but the new date will hinge upon the approval of the state, according to Disney. At last check, the stock is down 2.4% at $109.35.
The road has been a bumpy one for DIS, which peaked just below its 320-day moving average earlier this month before gapping below its 20-day moving average just days later. This trendline is keeping a tight lid on the shares, keeping them at a roughly
22% year-to-date deficit. Today, DIS is set to breach recent support at its $110 level, which also coincides with its mid-May, pre-bull gap highs.
Analyst sentiment is split on the media giant, with nine "buy" or better ratings on the table, and nine "hold" or worse. The consensus 12-month price target of $122.13, meanwhile, is an 11.6% premium to last night's close.
While call volume still outweighs put volume, options traders have been unusually bearish lately. This is per Disney's 10-day put/call volume ratio of 0.79 at the International Securities Exchange (ISE), Cboe Exchange (CBOE), and NASDAQ OMX PHLX (PHLX),
which stands higher than 80% of all other readings from the past year.