DIS stock is on track to clock gains this month, after three straight months of losses, if the gains hold.

  • Disney plans to launch an Employee Stock Purchase Plan later in 2027, pending final approvals, Business Insider reported. 
  • The announcement follows multiple rounds of job cuts in 2026.
  • Separately on Thursday, Morgan Stanley listed three factors that could lift Disney’s valuation over the next 6-12 months and support a path to $125 or higher.


Shares of Disney (DIS) clocked modest gains on Thursday as the company reportedly outlined plans for a new employee stock purchase program and adjustments to its health insurance offerings in an internal memo.

The stock closed up 0.4%, marking its third consecutive day of closing in the green. DIS is further on track to clock gains this month, after three straight months of losses, if the price appreciation holds.

Employee Stock Purchase Program

Disney plans to launch an Employee Stock Purchase Plan later in 2027, pending final approvals, Business Insider reported, citing the memo issued to employees on Wednesday.

Eligible U.S.-based employees will be able to buy company shares at a discount, typically around 15% below market price.

Eric Chaisson, executive vice president of total rewards and employee services, reportedly told staff the program will give workers “the opportunity to build company ownership by purchasing Disney stock.” Details on eligibility and design are still being finalized, the report said.

Health Insurance Adjustments

Most medical plans will change for 2027, and current coverage will not roll over automatically, the report said. Nearly all employees must actively select plans and re-enroll dependents. Disney is not switching insurers.

A company spokesperson told Business Insider the moves respond to rising nationwide healthcare costs and reaffirmed a commitment to “comprehensive… high-quality coverage.” Well-being programs will also evolve, including a doubling of counseling sessions under the Employee Assistance Program.

Attempts At Workforce Retention?

The announcements follow multiple rounds of job cuts in 2026. In April, Disney eliminated roughly 1,000 positions across marketing, studios, television, ESPN and technology as part of a streamlining effort under CEO Josh D’Amaro. Additional cuts in July affected several hundred more roles, with the largest impacts at Pixar, National Geographic and ESPN.

Earlier this month, Disney reported solid fiscal third-quarter results. Revenue rose 7% to $25.2 billion, driven by strength in parks, experiences and streaming. Total segment operating income climbed 21% to $5.6 billion, while adjusted earnings per share increased 28% to $2.06. The Experiences segment delivered record Q3 revenue of about $10 billion, and direct-to-consumer streaming operating income more than doubled.

Management raised its full-year share-repurchase target to at least $9 billion, supported in part by roughly $1.2 billion in expected proceeds from the sale of its 50% stake in A+E Global Media.

Path To $125 Ahead?

Separately on Thursday, Morgan Stanley said three factors could lift Disney’s valuation over the next 6–12 months and support a path to $125 or higher: continued strength in Parks and Experiences, faster monetization of its content library, and durable double-digit Disney+ revenue growth with expanding margins. The firm noted that Disney’s guidance for high-single-digit Experiences operating-income growth and a 10% streaming margin in fiscal 2026 supports that outlook. Morgan Stanley rates the shares Overweight with a $125 price target.

The fresh price target implies about 16% upside from the stock’s closing price on Thursday.

How Did DIS Retail Traders React?

On Stocktwits, retail sentiment around DIS stock fell from ‘bullish’ to ‘neutral’ over the past 24 hours, while message volume remained at ‘normal’ levels.

A Stocktwits user noted that for Disney, even marginal gains are “like a short squeeze.”

View this Stocktwits post

DIS stock has fallen 6% year-to-date, reflecting ongoing media and streaming challenges. 

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