Readers may come across different answers to the question in the header depending on the sources. According to YCharts, The Walt Disney Company (NYSE:DIS) has had nine stock splits, three between 1985 and 2000, and six prior to 1980.
On the other hand, Stock Split History and Yahoo Finance both reflect eight stock splits in Disneys history. However, the exercises in 1962 and 2007 seem more like bonus issues than stock splits. The first “split” for DIS stock was dated December 18, 1962. This was a 103 for 100 split, meaning that a shareholder with 100 shares of DIS pre-split will subsequently own 103 shares.
As with all corporate matters, investors should refer to the official announcements to be sure. From Walt Disneys website under the Investor Relations section, the company provided a neat table under the Frequently Asked Questions [FAQs]. The table showed only seven past stock splits that happened between 1956 and 1998. This meant that DIS stock has not split for over two decades. Also, it shows that Walt Disney does not consider the 103 shares for 100 shares and 1,014 shares for 1,000 shares as stock splits.
Stock splits don’t change anything fundamental, but Disney still might have a logical reason to enact one.
When a company executes a stock split, it doesnt fundamentally change anything for the business or for investors in that business — at least not in the practical sense. Some companies have traditionally announced splits to attract retail investors that might feel a high share price is out of reach for the small amounts they are able to invest.
But many brokerages now allow trading in fractional shares, which makes that situation moot, as investors can trade in any small dollar amount, regardless of how high share prices go. However, there can still be a psychological effect from stock split announcements. That might be something Walt Disney (DIS 0.66%) management should consider to help get its message to investors.
Like many companies, Disney was forced to adopt a strategy to deal with the impacts of the pandemic. Many of its businesses were effectively shut down, and normalcy hasnt yet returned for its theme parks, cruise line, and entertainment segments. But management pivoted to focus on the streaming business it was already working to build.
Disney shares soared in response to the early results after subscriber growth exceeded many investors expectations. But as the chart below shows, the trajectory of total direct-to-consumer (DTC) streaming and Disney+ subscriber growth slowed during 2021. As a result of that and the recent market slide, Disney shares have dropped 32% from March 2021 highs.
Its always important for companies to keep shareholders and the investment community informed. Investors were somewhat surprised by the fiscal 2021 fourth-quarter report when Disney shared that it only added 2.1 million additional paid subscribers in the three months ended Oct. 2, 2021.
In its most recent earnings conference call with investors on Nov. 10, CEO Bob Chapek reiterated that the company believes it remains on track with its streaming strategy, saying, “Were confident we are on the right trajectory to achieve the guidance that we provided at last years Investors Day, reaching between 230 million and 260 million paid Disney+ subscribers globally by the end of fiscal year 2024, and with Disney+ achieving profitability that same year.”
Stating that view on a conference call is one way of communicating it. But many investors look at stock splits as a sign that management has confidence in the direction of the company and its business. After all, they dont expect management to enact a share split with the expectation for the stock price to move lower. Disney could consider reinforcing its stated confidence with plans to split the stock.
Investors seem to be focused on Disneys streaming services, led by Disney+, while the balance of the business appears to have plenty of upside that is being dismissed. Visits to theme parks will resume for many at some point, and there still looks to be plenty of interest from Disney fans.
When Disney opened its 2022 EPCOT International Festival of the Arts recently, the companys blog showed long lines of people waiting to purchase $25 buckets of popcorn containers based on the EPCOT character Figment, which is from the Journey Into Imagination attraction. Those buckets are already turning into collectors items, with sellers listing them for $200 on eBay.
Thats just one small example of the reach of Disneys brand. As its theme parks, movies, and sports media businesses continue to recover, it seems the company could give investors more good news in the near future. While a stock split doesnt reflect real business progress, one could come for Disney shares if management wants to project confidence in that future business.
Michael D. Eisner, Disneys chairman and chief executive officer, said in a statement that the Theme Parks and Resorts “continued to lead the company forward during the second quarter” despite start-up costs for its newest park, Disneys Animal Kingdom, and Disney Cruise Line. Cable television operations “were also strong contributors to the quarters results.”
NEW YORK — Walt Disney Co., the parent of Fairchild Publications, reported earnings rose 21.5% in the second quarter and said it was planning a three-for-one stock split.
What’s Happening with Disney’s Dispute with Florida?
Passage of the Florida bill abolishing Disneys Reedy Creek special taxing district follows Disneys opposition to a new Florida law barring public school instruction about sexual orientation and gender identity for students in grades K through 3, and restricting it for other grades to “age-appropriate” presentations as specified by school boards, subject to lawsuits by parents. Opponents of the law have argued it fosters discrimination and hate. Disney initially opted not to join the many other large companies opposing the measure. After protests from Disney employees opposed to the legislation, Chapek apologized and promised the company would lobby against the passage of similar laws in other states and would pause its political donations in Florida, which had mostly gone to Republican politicians in recent years. Disneys policy shift brought condemnation from conservatives, including some who warned the companys business interests would be in jeopardy as a result. Disney did not comment immediately on the legislation abolishing its Reedy Creek special taxing district. However, by late April, Disney reminded Florida of its billion-dollar bond debt would need to be resolved before the state could move forward.
FAQ
Is Disney stock gonna split?
How is Disney doing financially 2022?
Diluted earnings per share (EPS) from continuing operations for the quarter increased to $0.77 from $0.50 in the prior-year quarter. Excluding certain items(1), diluted EPS for the quarter increased to $1.09 from $0.80 in the prior-year quarter.
What will Disney stock be worth in 5 years?
Is Disney a good stock to buy for long term?
