5 Overvalued Stocks Insiders are Dumping Now

4. Walt Disney Co (NYSE:DIS)

Number of Hedge Fund Investors: 89

Disney is trending in the news after the company won its proxy fight against Nelson Peltz. Disney was in a heated proxy fight with Nelson Peltz’s Trian Partners which was attempting to get two seats at the Walt Disney Co’s (NYSE:DIS) board.

Sonia Coleman, Walt Disney Co’s (NYSE:DIS) Senior Executive Vice President and Chief Human Resources Officer, sold 1,857 shares of Walt Disney Co (NYSE:DIS) on April 1 at $121.92 per share. Since this transaction the stock is up about 1%.

Madison Sustainable Equity Fund made the following comment about The Walt Disney Company (NYSE:DIS) in its Q3 2023 investor letter:

“During the quarter, we sold our positions in Bristol-Myers Squibb and The Walt Disney Company (NYSE:DIS).  The Walt Disney Company is facing a difficult and uncertain transition in its core media business assets including the ESPN business and other linear media assets. These media assets are cash generative but face secular decline as consumers are cutting their expensive cable subscriptions and moving to alternative streaming options. This has resulted in a decline in operating profits for the media division. The media business has long-term fixed costs related to its sports broadcasting agreement with multiple sports leagues which will further pressure profits during this transition.”