Walt Disney’s stock has seen a strong performance this year, with a gain of over 25%, supported by robust earnings and two consecutive quarters of profitable streaming. In line with this momentum, CEO Bob Iger executed a prearranged plan to sell a significant number of shares.
In mid-November, Disney revealed that Iger had implemented a Rule 10b5-1 plan, enabling him to sell up to 372,412 shares after acquiring them through vested stock options. Such plans are designed to eliminate concerns about insider trading by automating transactions under predetermined conditions like price, volume, and timing. Iger’s plan was scheduled to expire on December 17.
As part of this plan, Iger exercised options to acquire 372,412 Disney shares at $92.24 each, for a total cost of $34.3 million. On the same day, he sold these shares for $42.7 million, achieving an average price of $114.57 per share, according to a filing with the Securities and Exchange Commission.
Iger currently holds 226,770 Disney shares in a personal account, along with 20,724 shares in a 401(k) plan. The stock options used in his recent transactions were set to expire on December 18.
Disney declined to comment on Iger’s decision to exercise options and sell shares, nor did the company provide a statement on his behalf.
This marks Iger’s first sale of Disney stock as an insider since his return as CEO in November 2022.
Inside Scoop is a regular feature by Barron’s that highlights stock transactions by corporate executives, board members, and other notable figures. As insiders, these individuals are legally required to disclose their trades to the Securities and Exchange Commission or similar regulatory bodies.