The Walt Disney Co.’s (DIS) short interest increased by $696 million over the past month as CEO Bob Iger’s comments at the BofA Media, Communications & Entertainment Conference sparked a 4.4% drop in Disney’s stock price as it hit its year-to-date low of $97.06 on September 7th. Iger revealed that 2017 EPS would be in line with 2016 results instead of the 3% increase that analysts had been expecting and drastically below Disney’s EPS growth of 17.8% since 2010.
The Walt Disney Co. (Dis US) is the most shorted security in the Movies and Entertainment sector, with over twice the number of shorts as the runner-up Time Warner Inc. (TWX US). The overall Movies and Entertainment sector in the U.S. has $6.05 billion of total short interest, of which over a quarter is DIS. Over the last month the sector saw $553 million in short covering, 87% was in DIS.