Hasbro (NASDAQ:HAS) Sees Strong Trading Volume on Earnings Beat

Hasbro, Inc. (NASDAQ:HAS) shares saw unusually-strong trading volume on Tuesday following a stronger than expected earnings report. 2,216,573 shares changed hands during trading, an increase of 13% from the previous session’s volume of 1,964,532 shares.The stock last traded at $90.4580 and had previously closed at $81.59.

The company reported $1.28 earnings per share for the quarter, beating the consensus estimate of $1.16 by $0.12. The business had revenue of $1.14 billion during the quarter, compared to the consensus estimate of $1.07 billion. Hasbro had a return on equity of 141.11% and a net margin of 15.97%.The company’s revenue was up 16.2% compared to the same quarter last year. During the same period in the prior year, the company earned $1.30 earnings per share.

Hasbro Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 2nd. Shareholders of record on Wednesday, August 19th will be paid a $0.70 dividend. This represents a $2.80 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend is Wednesday, August 19th. Hasbro’s payout ratio is currently -168.67%.

Key Headlines Impacting Hasbro

Here are the key news stories impacting Hasbro this week:

• Positive Sentiment: Hasbro reported Q2 earnings and revenue that beat Wall Street estimates, with sales up 16% year over year and management raising its full-year outlook for revenue, profit, margins, and EBITDA. Reuters article
• Positive Sentiment: Wizards of the Coast and digital gaming were the main growth drivers, with record Magic: The Gathering demand helping offset softer areas and signaling that Hasbro’s higher-margin franchise strategy is working. WSJ article
• Positive Sentiment: Several analysts reiterated bullish ratings after the quarter, and the company also announced a quarterly dividend, which can support investor confidence. TipRanks article
• Neutral Sentiment: Hasbro unveiled official Legend of Zelda toy figures tied to the franchise’s 40th anniversary, which adds a positive brand and licensing angle but is not yet a confirmed earnings driver. IGN article
• Negative Sentiment: Offsetting the upbeat earnings story, Hasbro disclosed a $56 million write-down tied to cancelling several video game projects, highlighting execution risk in its gaming pipeline. GameSpot article

Analyst Ratings Changes

A number of equities analysts have recently weighed in on HAS shares. Roth Capital reaffirmed a “buy” rating on shares of Hasbro in a research note on Wednesday. Citigroup cut their price objective on shares of Hasbro from $114.00 to $101.00 and set a “buy” rating for the company in a research report on Friday, July 10th. BNP Paribas Exane reduced their target price on Hasbro from $117.00 to $114.00 and set an “outperform” rating on the stock in a research report on Wednesday, July 15th. JPMorgan Chase & Co. decreased their price target on Hasbro from $125.00 to $111.00 and set an “overweight” rating on the stock in a research note on Wednesday. Finally, Morgan Stanley upped their price objective on shares of Hasbro from $122.00 to $123.00 and gave the company an “overweight” rating in a research note on Thursday, May 14th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Hasbro has a consensus rating of “Moderate Buy” and an average target price of $108.36.

Institutional Trading of Hasbro

A number of hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. increased its stake in shares of Hasbro by 2.7% in the fourth quarter. Vanguard Group Inc. now owns 16,976,679 shares of the company’s stock worth $1,392,088,000 after buying an additional 453,038 shares during the last quarter. State Street Corp lifted its position in shares of Hasbro by 2.1% during the second quarter. State Street Corp now owns 6,508,052 shares of the company’s stock worth $480,424,000 after purchasing an additional 131,678 shares during the last quarter. AQR Capital Management LLC grew its stake in Hasbro by 47.3% in the fourth quarter. AQR Capital Management LLC now owns 4,357,147 shares of the company’s stock worth $357,286,000 after purchasing an additional 1,399,499 shares in the last quarter. Geode Capital Management LLC grew its stake in Hasbro by 3.5% in the fourth quarter. Geode Capital Management LLC now owns 3,661,020 shares of the company’s stock worth $299,700,000 after purchasing an additional 122,592 shares in the last quarter. Finally, Bank of America Corp DE increased its holdings in Hasbro by 21.9% in the third quarter. Bank of America Corp DE now owns 3,633,213 shares of the company’s stock valued at $275,579,000 after buying an additional 651,790 shares during the last quarter. Institutional investors and hedge funds own 91.83% of the company’s stock.

Hasbro Price Performance

The company has a 50 day simple moving average of $84.51 and a 200-day simple moving average of $90.34. The stock has a market cap of $12.60 billion, a price-to-earnings ratio of 16.01, a PEG ratio of 2.19 and a beta of 0.49. The company has a quick ratio of 1.49, a current ratio of 1.66 and a debt-to-equity ratio of 4.16.

Hasbro Company Profile

Hasbro, Inc is a global play and entertainment company, known for designing, manufacturing and marketing a diverse portfolio of toys, games and consumer products. Founded in 1923 as Hassenfeld Brothers and headquartered in Pawtucket, Rhode Island, the company has grown into one of the foremost names in the toy industry, with a presence in retail, digital and entertainment channels worldwide.

The company’s brand portfolio features iconic properties such as Monopoly, Play-Doh, Nerf, My Little Pony and Transformers.