Insiders Are Buying the Dip on These 5 Stocks

3. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders in Q1 2022: 113

Number of Hedge Fund Holders in Q4 2021: 111

Decrease in Share Price Year-to-Date (through July 26th): 33.98%

Return since July 26th: -5.1%

The Walt Disney Company (NYSE:DIS) operates as an entertainment company. The shares of the firm have risen in the past few days amid reopening news from China and reports that the company plans to raise the cost of the popular ESPN+ streaming service by nearly 43%. Per the report, first published by the Sports Business Journal, the company will raise the cost to $9.99 per month from $6.99 per month. The increase is due to the increase in cost of sports rights and will be applicable by late August. 

On July 27, Evercore ISI analyst Vijay Jayant maintained an Outperform rating on The Walt Disney Company (NYSE:DIS) stock and lowered the price target to $130 from $150, noting that the firm had a credible streaming strategy and a synergized growth story. 

At the end of the first quarter of 2022, 113 hedge funds in the database of Insider Monkey held stakes worth $5.1 billion in The Walt Disney Company (NYSE:DIS), up from 111 the preceding quarter worth $6.9 billion.

In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and The Walt Disney Company (NYSE:DIS) was one of them. Here is what the fund said:

“The communication services sector was a weak spot in both the benchmark and the portfolio in the fourth quarter. The Walt Disney Company (NYSE:DIS) announced lower than expected streaming subscriber growth to the company’s Disney+ offering, attributable primarily to the content release schedule. The Walt Disney Company (NYSE:DIS) has been ramping up content spending given strong global response to Disney+, although production capability was temporarily impacted by COVID-19. We still believe Disney is on track to reach the subscriber outlook outlined at its December 2020 analyst day, driven by a very robust slate of content releases, particularly in the 2022–2024 time period.”