Walt Disney (DIS) recently received regulatory approval from the US Department of Justice (or DoJ) to buy the film, TV, and entertainments assets of 21st Century Fox (FOXA) for $71.3 billion. This figure consists of cash and stock. Disney’s offer is higher than its initial bid of $52.4 billion and is also higher than Comcast’s (CMCSA) offer price of $65.0 billion.
Of the 21 analysts covering Disney, ten analysts rated the stock as a “buy,” and nine analysts rated the stock as a “hold.” Two analysts gave the stock a “sell” rating. Analysts have set a target price of $117.04 for the stock and a median consensus estimate of $121.00. Disney was trading at $103.96 on June 27, a 14.1% discount to its consensus median target estimate.
Technical indicators for Disney stock
On June 27, Disney stock was trading 0.3% below its 20-day moving average of $104.26. The stock was also trading 1.3% above its 50-day moving average of $102.58 and 1.2% above its 100-day moving average of $102.69. Disney has a 14-day RSI (relative strength index) of 55. An RSI above 70 indicates that the stock is overbought, but an RSI below 30 indicates an oversold stock.
Disney has an upper Bollinger Band of $110.00, a middle Bollinger Band of $104.00, and a lower Bollinger Band of $99.00. Bollinger Bands combine the moving averages for a stock.
Disney stock has a positive MACD (moving average convergence divergence) of ~1.1, indicating an upward trading trend for the stock. A stock’s MACD is the difference between its short-term and long-term moving averages.