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Disney Stock Receives Lofty Bull Note After Streaming Data

To follow, Guggenheim raised its price target to $200

Deputy Editor
Jan 13, 2021 at 2:36 PM
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The shares of Walt Disney Co (NYSE:DIS) are in the spotlight today, after Nielsen released data showing that the company's streaming service, Disney+, commanded 6% of consumer video streaming time in December. Pitted against popular streaming rival Netflix (NFLX), it's also worth noting that Disney+ claimed seven of the 10 most popular streamed movies of 2020. To follow, DIS received a price-target hike from Guggenheim to $200 from $185 -- uncharted territory for the blue-chip entertainment mogul.

Disney stock hasn't been able to move on the news, down 0.4% at $176.55 at last check. The shares concluded 2020 with a December 31 all-time high of $183.40. Since the start of 2021, however, DIS has been consolidating just above the $170 level, with its 20-day moving average containing the pullbacks. 

DIS20dayJan13

While analysts are mostly bullish on DIS, there is some room for price-target hikes moving forward. DIS'12-month consensus price target of $181.14 coming into today is a 2.7% premium to current levels. 

The options pits have been call-heavy, with 2.63 calls bought for every put in the last 10 weeks at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 71% of all other readings from the past year, indicating long calls being picked up at a relatively faster-than-usual clip during this time. 

Now could be a good time to weigh in on the security's next move with options. The stock is seeing attractively priced premiums at the moment, per DIS' Schaeffer's Volatility Index (SVI) of 35%, which sits in the 16th percentile of its annual range. Furthermore, the security's Schaeffer's Volatility Scorecard (SVS) sits at a relatively high 81 out of 100, meaning DIS has exceeded option traders' volatility expectations during the past year.

 
 

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