Is This a Bad Sign for Walt Disney Stock?
Nelson Peltz is out. The activist investor who was trying to turn Walt Disney (NYSE: DIS) around has reportedly sold his shares of the company for $120 apiece, earning a profit of approximately $1 billion on the entertainment stock. After losing a proxy fight earlier this year, Peltz looks to have given up on his quest to change the trajectory of the business.
But with Peltz claiming to see much more potential for Disney and its iconic brands and then selling out at just $120, should investors be worried? Whether he lost the proxy battle or not, the stock sale may suggest he didn't see a whole lot more upside for Disney.
Despite all the drama surrounding Peltz, Disney's stock has managed to produce market-beating returns thus far in 2024; it's up around 14%, which is better than the S&P 500's 11% return. At the end of the day, what may matter most to Peltz is coming away with a profit on his investment. And if he earned $1 billion, then regardless of whether he won the proxy fight, he still won in the end, taking away a large profit.
Source Fool.com
