The Walt Disney Company (NYSE: DIS) 🎬 
$111.62 ▲ +1.13 (+1.02%)
As of Dec-16-2025, 4:10 PM ET

FUNstock Index:  8.9 / 10 🎯
High-quality franchise. Improving fundamentals. Strong insider and institutional signals. Not risk-free — but increasingly hard to ignore.

Six months ago, we wrote that Disney still had pixie dust left in the tank. Since then, the stock is up ~23%, streaming finally flipped profitable, parks kept printing cash — and now, one of Wall Street’s most seasoned minds has quietly stepped onto Main Street.

When James P. Gorman, former CEO and Chairman of Morgan Stanley, drops $2 million of his own money into Disney stock… it’s worth paying attention. 👀🏰

This isn’t a hype trade. This is a grown-up signal.

Let’s unpack what changed — and why Disney still looks surprisingly magical at these levels.

🧠 Trigger #1: Gorman Buys. And He Doesn’t Chase Fairy Tales.

On Dec 12, 2025, Disney director James P. Gorman purchased:

• 18,000 shares

• $111.89 per share

• $2.01M total

• +68% increase in his ownership

Gorman didn’t run Morgan Stanley for 13 years by mistaking castles for clouds. He’s a valuation guy. A capital allocator. A risk manager.

And now — Chairman of Disney’s board.

💬 Any chance he recognizes value here?
Short answer: yes.

🏦 Trigger #2: Institutions Aren’t Leaving — They’re Arriving

Institutional ownership has climbed meaningfully since our April write-up:

• Institutions now own ~75.8% of the float (up from ~71.7%)

• 3,959 institutions currently hold shares

Top holders include:

• Vanguard

• BlackRock

• JPMorgan

• State Street

• Morgan Stanley itself

That’s not “tourist capital.” That’s long-term conviction money.

For Disney (DIS)’s Institutional Ownership breakdown, 🔍 see here.

🦹 Trigger #3: Shorts Are Nearly Extinct

Short interest sits at ~1.04%.

That’s not skepticism — that’s surrender.

When bears stop betting against a media giant trading ~50% below its all-time high, something important has shifted.

🎯 Trigger #4: Analysts Are (Still) Optimistic — But More Grounded

Consensus: Moderate Buy / Buy

• 70–80% Buy / Strong Buy

• Average 12-month target: $132–$134

• Upside: ~20%+, with high estimates pushing $150–$160

Analysts acknowledge:

• Streaming is improving (finally profitable)

• Parks remain a monster cash engine

• Execution matters — but the plan is working

📊 Trigger #5: Valuation Is… Reasonable (Yes, Really)

Let’s talk numbers — no costumes required.

• Trailing P/E: ~16

• Forward P/E: ~16–17

• Price / Book: ~1.8

• EV / EBITDA: ~12.5

That’s not expensive for:

• A dominant IP library (Marvel, Star Wars, Pixar)

• A global experiences monopoly

• A streaming platform turning profitable

• A company guiding double-digit EPS growth

PEG ratios look messy — but that’s what happens when a company transitions business models. The market hates transitions… until it doesn’t.

🎢 Trigger #6: Earnings Say the Turnaround Is Real

Fiscal 2025 highlights:

• Revenue: $94.4B (+3%)

• Operating income: $17.6B (+12%)

• Adjusted EPS: $5.93 (+19%)

• Cash from operations: $19B

Segment Highlights:

🎬 Entertainment

• Streaming operating income turning positive

• Disney+ + Hulu: 196M subs

• DTC margins improving

🏈 Sports (ESPN)

• Advertising +8%

• Streaming pivot underway

• Costs rising — but monetization improving

🏰 Experiences

• Record $10B operating income

• International parks +25%

• Cruises expanding (yes, people still love magic at sea)

💰 Shareholder Candy

• $7B buyback authorized (doubling prior year)

• $1.50 dividend reinstated (yield: 1.3438%)

• Balance sheet healing nicely

 👉 Want the full picture? Dive into Disney (DIS)’s financials here.

✨ Why Investors Buy Disney (DIS)

• 🧙 Unmatched IP moat (Marvel, Pixar, Star Wars, ESPN)

• 📺 Streaming profitability inflection

• 🎢 Parks & cruises as cash machines

• 🧠 Experienced leadership (Iger + Gorman)

• 💵 Strong cash flow + buybacks

• 📉 Still ~50% below ATH of $203

Need not drive a toy Yoda or second-guess Simba-lism to see the magic here.

⚠️ Risks (Because Fairy Tales Still Have Villains)

• Streaming competition remains fierce

• Linear TV continues to decline

• Sports rights costs keep rising

• Consumer spending could slow

• Debt still needs careful management

Nothing existential — but execution matters.

💡💡💡 Curious about another deep oil exploration play?
Check our takes on UnitedHealth Group or even Oscar Health.

🧾 Quick Take / TL;DR

• Disney isn’t the bargain it was at $90 — but it’s still reasonably priced

• Gorman’s buy adds serious credibility

• Institutions are increasing exposure

• Shorts are gone

• Cash flow, buybacks, and earnings are improving

• Long-term investors may still find plenty of magic here ✨

❓ FAQ

Q: Is Disney still a value stock?
A: It’s more “value-with-growth” now — less distressed, more durable.

Q: Why does insider buying matter?
A: Because executives usually buy for one reason: they expect upside. That said, insider buying is a signal—not a guarantee. Markets can still surprise.

Q: What’s the biggest catalyst ahead?
A: Continued streaming profitability + disciplined capital returns.

Q: Would you buy at $112?
A: Preferably lower — but for long-term investors, it’s still compelling.

👤 About the Author

Frédéric Marsanne is the founder of FUNanc1al, where smart meets fun, and money meets meaning. A longtime entrepreneur, investor, strategist, and storyteller, he blends serious market analysis with insights on health, tech, culture, and the occasional absurdity of modern life. His work mixes curiosity, clarity, and a healthy skepticism of hype — because markets, metrics, and money should be understood… and occasionally laughed at.

This article is for informational and entertainment purposes only. It is not financial advice. Investing involves risk, including the potential loss of capital.

Always DYOR, resist FOMO, and never invest money you can’t afford to lose — or bet the castle on a single idea. 🏰.

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We laugh, we analyze, we meme.
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