JAKKS Pacific (JAKK) Lowered to Sell at Zacks Investment Research

JAKKS Pacific (NASDAQ:JAKK) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Tuesday.

According to Zacks, “JAKKS Pacific’s shares have underperformed the industry in the last one year. The company’s revenues are likely to be pressurized by various factors in general. Meanwhile, the company’s earnings have also been under pressure, incurring losses in eight of the 11 trailing quarters. A challenging retail environment, rising costs, adverse forex translations, age compression and the shift to alternative modes of entertainment remain threats to the top line. Further, the company had to reduce its full year guidance due to a bankruptcy filing by its significant partner and retailer, Toys ‘R’ Us. JAKKS Pacific now expects to incur a net loss and record negative earnings per share for the full year.”

Several other equities research analysts also recently weighed in on JAKK. Jefferies Group reissued a “hold” rating and issued a $3.50 price target (down previously from $4.50) on shares of JAKKS Pacific in a report on Saturday, September 30th. DA Davidson upgraded JAKKS Pacific from an “underperform” rating to a “neutral” rating in a research note on Monday, October 30th. They noted that the move was a valuation call. BMO Capital Markets restated a “hold” rating and issued a $3.50 price objective on shares of JAKKS Pacific in a research note on Friday, October 6th. Finally, Stifel Nicolaus reduced their price objective on JAKKS Pacific from $4.50 to $3.30 and set a “hold” rating for the company in a research note on Monday, October 30th. Two equities research analysts have rated the stock with a sell rating and five have given a hold rating to the company’s stock. JAKKS Pacific currently has an average rating of “Hold” and a consensus price target of $3.51.

Shares of JAKKS Pacific (JAKK) remained flat at $$2.50 during midday trading on Tuesday. The stock had a trading volume of 53,600 shares, compared to its average volume of 180,478. The company has a debt-to-equity ratio of 1.07, a current ratio of 1.96 and a quick ratio of 1.54. The firm has a market cap of $65.44, a price-to-earnings ratio of -0.83, a P/E/G ratio of 3.28 and a beta of 0.65. JAKKS Pacific has a twelve month low of $2.20 and a twelve month high of $5.85.

JAKKS Pacific (NASDAQ:JAKK) last issued its quarterly earnings results on Thursday, October 26th. The company reported $0.53 earnings per share for the quarter, missing the consensus estimate of $0.85 by ($0.32). The business had revenue of $262.40 million during the quarter, compared to analyst estimates of $294.59 million. JAKKS Pacific had a negative return on equity of 15.58% and a negative net margin of 9.36%. JAKKS Pacific’s revenue was down 13.3% compared to the same quarter last year. During the same period in the prior year, the business posted $0.82 EPS. equities analysts anticipate that JAKKS Pacific will post -0.04 earnings per share for the current fiscal year.

A number of hedge funds have recently made changes to their positions in the stock. Goldman Sachs Group Inc. raised its position in JAKKS Pacific by 0.5% during the first quarter. Goldman Sachs Group Inc. now owns 24,530 shares of the company’s stock valued at $135,000 after acquiring an additional 117 shares in the last quarter. Lazard Asset Management LLC raised its position in JAKKS Pacific by 0.6% during the first quarter. Lazard Asset Management LLC now owns 51,534 shares of the company’s stock valued at $383,000 after acquiring an additional 291 shares in the last quarter. Stifel Financial Corp raised its position in JAKKS Pacific by 1.6% during the second quarter. Stifel Financial Corp now owns 25,401 shares of the company’s stock valued at $201,000 after acquiring an additional 400 shares in the last quarter. California Public Employees Retirement System raised its position in JAKKS Pacific by 0.6% during the second quarter. California Public Employees Retirement System now owns 218,868 shares of the company’s stock valued at $875,000 after acquiring an additional 1,400 shares in the last quarter. Finally, Oxford Asset Management raised its position in JAKKS Pacific by 0.6% during the second quarter. Oxford Asset Management now owns 361,018 shares of the company’s stock valued at $2,856,000 after acquiring an additional 2,112 shares in the last quarter. Institutional investors own 56.78% of the company’s stock.

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About JAKKS Pacific

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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