Dan Loeb’s Third Point LLC fund snapped up a significant stake in Walt Disney (DIS) during the first quarter, with the acquisition of 1.4M shares, a 13F filing shows.
At the same time the $14.8B fund disposed of its entire holding in Campbell Soup (CPB) with the sale of 2.4M shares, while also exiting both TD Ameritrade (AMTD) and Charles Schwab (SCHW).
Similarly, Loeb slashed the fund’s Baxter International (BAX) stake by 5.92M shares, leaving the fund with a still sizable holding of 11.58M shares.
Due to the coronavirus-related market selloff, the fund lost 16% during the quarter, reports Bloomberg.
Founded in 1995, Third Point focuses on event-driven, value-oriented investing, seeking to “identify situations with a recognizable catalyst which we anticipate will unlock value.”
Analysts have a cautiously optimistic outlook on DIS stock right now with a Moderate Buy consensus and a $121 average price target (11% upside potential). The stock has plunged 25% year-to-date. (See Disney stock analysis on TipRanks).
“Disney’s 2Q-FY20 results and outlook highlighted the significant operating and financial disruption caused by the ongoing pandemic” writes RBC Capital’s Kutgun Maral.
He has a hold rating on the stock and recently trimmed his price target from $110 to $108 (1% downside potential). “The acute pressures to theme parks, studio, and media networks limit earnings visibility or confidence that estimates have bottomed, as demonstrated by the company foregoing its next semi-annual dividend” he explained.
“We continue to remain bullish on Disney’s strategic vision, quality of assets, and execution, but remain on the sidelines until there is greater clarity on the post- coronavirus world” the analyst concluded.
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