Shares of Walt Disney were little moved Thursday, after a filing from Nelson Peltz's Trian Fund Management nominated two new directors. Trian also provided detail of a series of demands on the Dow Jones entertainment giant. Disney stock rose 0.8% Thursday morning.
The Trian filing set out a target of 15% to 20% margins for the company by 2027, using Netflix margins as a guide. Trian said management pay should correspond to company performance, and pressed for a "CEO succession."
The activist investor group also formally nominated Peltz and former Disney CFO Jay Rasulo to the Dow Jones company's board of directors. Trian had announced in December plans to nominate new names to the board, but did not specific who at that time.
Peltz issued a statement pledging a "full presentation to shareholders" of the fund's aims.
"To be clear," the Peltz statement said, "Disney needs to again be the beacon of strategic clarity and exceptional execution it once was."
He added that "No Disney shareholder should be content with the current strategic muddle or have to endure failed execution without accountability."
Disney Stock
Shares of Disney stock punched back above their 50-day moving average in strong trade on Tuesday. That broke a downsloping trend line and put the stock in a buy zone for aggressive investors. Shares snapped right back below the line on Wednesday, demonstrating why early buy points are considered risky.
Shares rose 1.3% early Thursday, just enough to test, not enough to break above, resistance at the 50-day level.
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