Disney Releases Will See Theatrical Run First in 2021

The recent success of its theater-only releases has sparked the decision

Deputy Editor
Sep 13, 2021 at 10:29 AM
facebook twitter linkedin


The shares of Walt Disney Co (NYSE:DIS) are relatively unchanged after the blue-chip name announced it would show new releases exclusively in theaters for the remainder of the year, before making them available on its Disney+ streaming service. The success of recent titles such as "Shang-Chi and the Legend of the Ten Rings," which enjoyed $94.7 million in ticket sales at U.S. and Canadian theaters over Labor Day weekend, is driving the decision. 

Disney stock is testing its footing near its year-to-date breakeven level, though it has added nearly 40% over the last 12 months, and just came off its third consecutive weekly win. The stock was last seen up 0.5% at $184.92, while  the 10-day moving average sits just below as a level of support. The 200-day moving average is also providing a floor, after helping capture several pullbacks in the past year. 

Sentiment surrounding the media giant is optimistic. Of the 17 in coverage, 14 say "buy" or better, and three say "hold." Meanwhile, the 12-month consensus price target of $210.23 is a 14.5% premium to current levels. 

Now looks like the perfect  time to speculate on Disney stock's next move with options. The security's Schaeffer's Volatility Index (SVI) of 23% stands higher than 11% of readings from the past year. This means options traders are pricing in relatively low volatility expectations for DIS at the moment. 

Grab your FREE Eternal Contrarian report!


 




 
Special Offers from Schaeffer's Trading Partners