Disney Stock (NYSE:DIS): Peltz Wins Key Support in Push for Board Seats
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Disney Stock (NYSE:DIS): Peltz Wins Key Support in Push for Board Seats

Story Highlights

Disney’s management is under pressure for board changes as activist investor Nelson Peltz gets the support of a large shareholder, Ike Perlmutter.

Activist investor Nelson Peltz has gained the support of Isaac Ike Perlmutter in his recent push for multiple board seats at the Walt Disney Co. (NYSE:DIS). As per a Wall Street Journal report, Perlmutter has transferred all of his Disney shares, along with the sole voting rights, to Peltz in his fight with the entertainment giant. Perlmutter is an ex-CEO of Marvel Entertainment and was ousted by the board citing cost-cutting initiatives in March 2023, when he was serving as its chairman.

Perlmutter’s decision to side with Peltz stems from his belief that Disney is currently underachieving its “great potential.” This might result in his sizable Disney stake losing further value. DIS stock has already lost 22.4% over the last six months. Perlmutter believes Peltz is capable of improving Disney’s operations and helping to enhance shareholder returns.

Peltz’s holding in Disney has increased manifold thanks to Perlmutter’s shares.

Is Disney a Buy, Sell, or Hold?

Analysts remain cautiously optimistic about Disney stock. On TipRanks, DIS has a Moderate Buy consensus rating based on 18 Buys, five Holds, and one Sell rating. The average Walt Disney price target of $106.43 implies 34.2% upside potential from current levels.

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