Why Walt Disney Stock Went Down on Monday

Walt Disneyhis (DIS -0.30%) The annual fan event failed to move the needle on its stock, a situation compounded by a significant price target reduction from one analyst. Neither hurt the stock badly, but Disney still landed in negative territory on Monday. Its stock fell 0.3% on a day when S&P 500 index traded flat.

A major movement in the parks

At the D23 Expo, much of Disney’s hype was about the many expansions and additions to its network of theme parks.

The company will undergo a major expansion of Walt Disney World in Florida. Among other new attractions will be a “terrain” — park area — dedicated entirely to the best villains in its suite of characters. The company has already made inroads in the field. Meanwhile, his Pixar unit machinery franchise will be the subject of two new attractions at a reimagined Frontierland, including a racing one and a family-friendly one.

As for its founding Disneyland in California, the company plans to build new lands and attractions based on its Marvel Avengers superhero property. They are also working on an attraction located in the world Avatars movies.

An analyst’s reaction

It’s safe to say the D23 announcements didn’t impress Accountability Research analyst David Heasman. On Monday, Heasman downgraded his recommendation on Disney stock to hold from his previous purchase. Its current price target is $95 per share.

It was not immediately clear why he made the move. It comes less than a week after Disney reported its fiscal third-quarter earnings, which despite notable positives — such as the profitability of its Disney+ streaming service and a pair of compelling beats — did not moved the needle too much on the stock. .