Bob Iger, the CEO of Walt Disney Co. (DIS), has filed to sell up to $40 million of company stock.
News of the stock sale comes on a day when Disney’s share price is up 6% after the company reported better-than-expected financial results. Iger has filed a Rule 10b5-1 plan with the U.S. Securities and Exchange Commission (SEC) to sell as many as 372,412 shares of DIS stock. Typically, 10b5-1 trading plans are used to remove the appearance of bias from the knowledge of nonpublic information.
At the current share price of $109.22, selling all the shares listed in Iger’s plan would net the CEO $40.7 million. The share sales look likely to happen quickly as the 10b5-1 plan that Iger has filed with the SEC expires on December 17 of this year. So far, the plan hasn’t executed any trades of DIS stock.
An Unusual Move
The move by Iger to sell company stock is unusual as he hasn’t sold any DIS stock since returning to lead the Mouse House two years ago. Iger last sold Disney stock in June 2021, when he offloaded 550,570 shares at an average price of $179.21 each for proceeds of nearly $100 million.
Iger, who previously retired from Disney and then returned to the CEO role, has announced that he plans to permanently leave the company in 2026. Iger and Disney’s board are searching for his successor. DIS stock has risen 21% year-to-date.
Is DIS Stock a Buy?
Disney stock has a consensus Strong Buy rating among 16 Wall Street analysts. That rating is based on 12 Buy and four Hold recommendations made in the last three months. There are no Sell ratings on the stock. The average DIS price target of $114 implies 4.20% upside from current levels.
