Robert Iger, CEO and director of the Walt Disney Co. (DIS), recently sold shares worth $42.66 million of the entertainment giant. This is the first big Informative Sell transaction of the CEO this year.
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A corporate insider’s share sale usually signals caution about the company’s future potential. However, an insider might sell shares for other reasons, such as financial or personal obligations.
The Walt Disney is an American multinational mass media and entertainment conglomerate and operator of Disney themes and parks.
A Closer Look at the Insider’s Transactions
As per Form 4 filed with the SEC on November 22, the CEO sold 372,412 DIS shares on November 22 in multiple tranches at a weighted average price of $114.56 apiece. Iger exercised 372,412 stock options at a strike price of $92.235 per share.
It is worth noting that even after the latest Informative Sell transaction, the CEO still owns 226,766 DIS shares directly and another 20,879 shares indirectly held by his wife and under 401(k) plans, all worth $28.64 million.
DIS stock currently has a Negative Insider Confidence Signal on TipRanks, based on Informative Sell transactions worth $43.2 million undertaken in the last three months.
It is important to keep an eye on the Informative trades of corporate insiders, given their knowledge of a company’s growth potential. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Is Disney a Good Stock to Buy Now?
Analysts remain highly optimistic about Disney stock’s trajectory. On TipRanks, DIS stock has a Strong Buy consensus rating based on 15 Buys and five Hold ratings. Also, the average Walt Disney price target of $124.29 implies 7.5% upside potential from current levels. Year-to-date, DIS stock has gained 26.7%.
