JAKKS Pacific, Inc. (JAKK) Downgraded by Zacks Investment Research to Strong Sell
Zacks Investment Research cut shares of JAKKS Pacific, Inc. (NASDAQ:JAKK) from a hold rating to a strong sell rating in a research note issued to investors on Thursday.
According to Zacks, “JAKKS Pacific’s second-quarter loss of $0.66 per share was much wider compared with the prior-year quarter loss of $0.27 and the Zacks Consensus Estimate of a loss of $0.24. Revenues fell 15.2% year over year to $119.6 million and lagged the consensus mark by over 9%. Notably, its earnings have been under pressure, incurring losses in eight of the 10 trailing quarters. Moreover, a challenging retail environment, adverse forex translations, age compression and the shift to alternative modes of entertainment remain threats to the top line. Even so, the company expects to gain momentum in the second half, given improved sales performance and better cost management. Also, product launches, organic growth initiatives, collaborations with popular brands and licensing agreements with famed franchises should boost sales. Yet, rising costs could weigh on margins. Shares of the company have also underperformed the industry year to date.”
Other research analysts have also issued research reports about the company. TheStreet lowered JAKKS Pacific from a c- rating to a d+ rating in a research note on Tuesday, July 25th. BMO Capital Markets reissued a hold rating and set a $6.00 price target on shares of JAKKS Pacific in a research note on Thursday, July 13th. Stifel Nicolaus reissued a hold rating and set a $5.50 price target on shares of JAKKS Pacific in a research note on Monday, July 10th. Jefferies Group LLC started coverage on JAKKS Pacific in a research note on Thursday, June 8th. They set a hold rating and a $4.50 price target on the stock. Finally, DA Davidson reissued a neutral rating and set a $3.75 price target (down previously from $5.00) on shares of JAKKS Pacific in a research note on Saturday, July 22nd. One investment analyst has rated the stock with a sell rating and seven have assigned a hold rating to the company’s stock. JAKKS Pacific presently has a consensus rating of Hold and an average target price of $5.46.
JAKKS Pacific (NASDAQ:JAKK) traded down 1.47% during midday trading on Thursday, reaching $3.35. The company’s stock had a trading volume of 72,407 shares. JAKKS Pacific has a 52 week low of $3.30 and a 52 week high of $9.75. The firm’s 50-day moving average price is $3.87 and its 200-day moving average price is $4.77. The stock’s market capitalization is $72.41 million.
JAKKS Pacific (NASDAQ:JAKK) last posted its earnings results on Tuesday, July 25th. The company reported ($0.66) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.21) by $0.45. JAKKS Pacific had a negative net margin of 1.76% and a negative return on equity of 7.07%. The company had revenue of $119.57 million during the quarter, compared to analysts’ expectations of $134.02 million. During the same period in the previous year, the company posted ($0.27) EPS. JAKKS Pacific’s quarterly revenue was down 15.2% compared to the same quarter last year. On average, analysts anticipate that JAKKS Pacific will post $0.27 earnings per share for the current year.
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A number of hedge funds have recently made changes to their positions in JAKK. Lazard Asset Management LLC bought a new stake in shares of JAKKS Pacific during the first quarter valued at about $271,000. California Public Employees Retirement System increased its stake in shares of JAKKS Pacific by 22.7% in the first quarter. California Public Employees Retirement System now owns 217,468 shares of the company’s stock valued at $1,196,000 after buying an additional 40,300 shares in the last quarter. Stifel Financial Corp increased its stake in shares of JAKKS Pacific by 2.9% in the first quarter. Stifel Financial Corp now owns 28,401 shares of the company’s stock valued at $155,000 after buying an additional 800 shares in the last quarter. KBC Group NV increased its stake in shares of JAKKS Pacific by 92.1% in the first quarter. KBC Group NV now owns 59,895 shares of the company’s stock valued at $329,000 after buying an additional 28,719 shares in the last quarter. Finally, JPMorgan Chase & Co. increased its stake in shares of JAKKS Pacific by 38.9% in the first quarter. JPMorgan Chase & Co. now owns 1,603,398 shares of the company’s stock valued at $8,820,000 after buying an additional 448,687 shares in the last quarter. Hedge funds and other institutional investors own 66.78% of the company’s stock.
JAKKS Pacific Company Profile
JAKKS Pacific, Inc is a multi-line, multi-brand toy company. The Company designs, produces, markets and distributes toys and related products, pet toys, consumables and related products, electronics and related products, kids indoor and outdoor furniture, and other consumer products. The Company operates through two business segments: traditional toys and electronics, and role play, novelty and seasonal toys.
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