Disney’s (DIS, $113.94) to acquire Fox (FOX, $50.94) assets on March 20
Walt Disney and 21st Century Fox have settled on a closing date of March 20 for their transformative $71 billion media-asset deal. The deal involves Disney’s acquisition of Fox’s entertainment assets in exchange for Disney divesting Fox's 22 regional sports networks.
In light of the agreement, the companies confirmed that they are expecting Fox to distribute all issued and outstanding common shares of Fox Corp. to the 21CF shareholders at about 8 a.m. ET on March 19 on a pro rata basis. Following this, Disney’s acquisition of Fox’s entertainment assets will be effective at 12.02 a.m. ET on March 20, 2019.
Holders of the 21CF common stock will then be given a deadline of 5 p.m. on March 14 to elect the form of consideration they wish to receive in the acquisition.
According to the terms of the deal, Disney is likely to pick up the studio, a controlling stake in Hulu, a suite of entertainment channels like FX and Nat Geo and some other assets. While the remaining assets of 21st Century Fox will be spun off into a new company simply called Fox, which would have channels like Fox broadcast network, Fox News and Fox Sports.
Once complete, the deal is not just likely to bring cost synergies worth at least $2 billion by 2021, but is also set to result in employee layoffs in the range of ~5,000 people — some on the Fox side, others on the Disney side — owing to the consolidation.
DIS's Stochastic Oscillator remains in oversold zone for 8 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DIS advanced for three days, in of 289 cases, the price rose further within the following month. The odds of a continued upward trend are .
DIS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 172 cases where DIS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for DIS moved out of overbought territory on April 03, 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 31 similar instances where the indicator moved out of overbought territory. In of the 31 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on April 09, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on DIS as a result. In of 96 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 April 04, 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 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
DIS moved below its 50-day moving average on April 17, 2024 date and that indicates a change from an upward trend to a downward trend.
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 .
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 steady price growth. DIS’s price grows at a higher 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 (2.213) is normal, around the industry mean (5.400). P/E Ratio (74.558) is within average values for comparable stocks, (87.119). Projected Growth (PEG Ratio) (0.871) is also within normal values, averaging (2.822). Dividend Yield (0.002) settles around the average of (0.040) among similar stocks. P/S Ratio (2.503) is also within normal values, averaging (29.645).
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 89, placing this stock worse than average.
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Fundamental Analysis Ratings
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General Information
an operator of amusement parks, hotels, television stations and radio broadcasting stations
Industry MoviesEntertainment