Walt Disney will stop paying more than 100,000 employees, starting this week, in a bid to save more cash amid the coronavirus crisis.
The entertainment behemoth will continue to provide full healthcare benefits for staff on unpaid leave, according to the Financial Times.
The employees, whose paychecks are to be discontinued, will be asked to seek state benefits.
Earlier this month, Disney's SEC filing revealed that it entered into a new credit agreement with Citigroup for as much as $5 billion to help see itself through the lockdown. The facility is apparently for general corporate purposes, as indicated in the filing.
Disney had earlier announced plans to furlough certain non-essential U.S. employees starting April 19. The company asked them to apply for the additional $600 a week of federal support as part of the U.S. government's $2 trillion coronavirus stimulus package.
DIS broke above its upper Bollinger Band on February 08, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 31 similar instances where the stock broke above the upper band. In of the 31 cases the stock fell afterwards. This puts the odds of success at .
The 10-day RSI Indicator for DIS moved out of overbought territory on February 20, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 29 similar instances where the indicator moved out of overbought territory. In of the 29 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 57 cases where DIS's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on February 23, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on DIS as a result. In of 95 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for DIS turned negative on February 23, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DIS declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
DIS moved above its 50-day moving average on January 18, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for DIS crossed bullishly above the 50-day moving average on January 25, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DIS advanced for three days, in of 290 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 170 cases where DIS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. DIS’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.962) is normal, around the industry mean (5.418). P/E Ratio (66.098) is within average values for comparable stocks, (87.614). Projected Growth (PEG Ratio) (0.531) is also within normal values, averaging (4.313). Dividend Yield (0.003) settles around the average of (0.123) among similar stocks. P/S Ratio (2.219) is also within normal values, averaging (4.311).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DIS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
an operator of amusement parks, hotels, television stations and radio broadcasting stations
A.I.dvisor indicates that over the last year, DIS has been loosely correlated with NWSA. These tickers have moved in lockstep 45% of the time. This A.I.-generated data suggests there is some statistical probability that if DIS jumps, then NWSA could also see price increases.