JAKKS Pacific (JAKK) Rating 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 research report issued to clients and investors on Monday.

According to Zacks, “JAKKS Pacific's strategic acquisitions, solid international footprint, focus on innovation and collaborations with popular brands and movie franchisees are positives. However, 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. Shares have underperformed the industry in the last one year. Estimates for 2018 earnings have been stable over the last 60 days.”

A number of other equities analysts have also recently commented on the stock. BMO Capital Markets reaffirmed a “hold” rating and set a $3.50 price objective on shares of JAKKS Pacific in a research report on Monday, November 27th. Stifel Nicolaus reduced their price objective on shares of JAKKS Pacific from $4.50 to $3.30 and set a “hold” rating for the company in a research report on Monday, October 30th. DA Davidson raised shares of JAKKS Pacific from an “underperform” rating to a “neutral” rating in a research report on Monday, October 30th. They noted that the move was a valuation call. Finally, Jefferies Group reaffirmed a “hold” rating and set a $3.50 price objective (down from $4.50) on shares of JAKKS Pacific in a research report on Saturday, September 30th. Two analysts have rated the stock with a sell rating and five have issued a hold rating to the company’s stock. The company has a consensus rating of “Hold” and an average price target of $3.51.

JAKKS Pacific (JAKK) traded up $0.15 during mid-day trading on Monday, reaching $2.50. 122,388 shares of the company’s stock were exchanged, compared to its average volume of 158,193. The company has a debt-to-equity ratio of 1.07, a quick ratio of 1.54 and a current ratio of 1.96. JAKKS Pacific has a 1 year low of $2.20 and a 1 year high of $5.85. The company has a market capitalization of $65.44, a PE ratio of -0.83, a price-to-earnings-growth ratio of 3.08 and a beta of 0.65.

JAKKS Pacific (NASDAQ:JAKK) last released its quarterly earnings data on Thursday, October 26th. The company reported $0.53 EPS for the quarter, missing the Zacks’ consensus estimate of $0.85 by ($0.32). JAKKS Pacific had a negative return on equity of 15.58% and a negative net margin of 9.36%. The company had revenue of $262.40 million for the quarter, compared to the consensus estimate of $294.59 million. During the same period last year, the firm earned $0.82 earnings per share. The company’s revenue for the quarter was down 13.3% compared to the same quarter last year. research analysts expect that JAKKS Pacific will post -0.04 EPS for the current fiscal year.

Institutional investors have recently made changes to their positions in the company. Stifel Financial Corp boosted its position in shares of JAKKS Pacific by 12.7% in the second quarter. Stifel Financial Corp now owns 32,005 shares of the company’s stock valued at $129,000 after acquiring an additional 3,604 shares during the period. Wells Fargo & Company MN boosted its position in shares of JAKKS Pacific by 20,020.5% in the third quarter. Wells Fargo & Company MN now owns 51,911 shares of the company’s stock valued at $155,000 after acquiring an additional 51,653 shares during the period. Goldman Sachs Group Inc. boosted its position in shares of JAKKS Pacific by 273.2% in the second quarter. Goldman Sachs Group Inc. now owns 91,550 shares of the company’s stock valued at $366,000 after acquiring an additional 67,020 shares during the period. California Public Employees Retirement System boosted its position in shares of JAKKS Pacific by 0.6% in 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 during the period. Finally, Walthausen & Co. LLC boosted its position in shares of JAKKS Pacific by 668.6% in the third quarter. Walthausen & Co. LLC now owns 774,300 shares of the company’s stock valued at $2,323,000 after acquiring an additional 673,560 shares during the period. 56.77% of the stock is owned by institutional investors.

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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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