JAKKS Pacific (JAKK) Rating Lowered to Sell at Zacks Investment Research
Zacks Investment Research cut shares of JAKKS Pacific (NASDAQ:JAKK) from a hold rating to a sell rating in a research report released on Tuesday morning.
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.”
Other analysts have also recently issued research reports about the company. DA Davidson cut JAKKS Pacific from a neutral rating to an underperform rating and lowered their price objective for the stock from $3.75 to $2.25 in a research report on Thursday, September 21st. BMO Capital Markets reissued a hold rating and issued a $3.50 price objective on shares of JAKKS Pacific in a research report on Monday, November 27th. Stifel Nicolaus lowered their price objective on JAKKS Pacific from $4.50 to $3.30 and set a hold rating for the company in a research report on Monday, October 30th. Finally, Jefferies Group reissued a hold rating and issued a $3.50 price objective (down previously from $4.50) on shares of JAKKS Pacific in a research report on Saturday, September 30th. Two investment analysts have rated the stock with a sell rating and five have assigned a hold rating to the company. JAKKS Pacific presently has a consensus rating of Hold and a consensus price target of $3.51.
JAKKS Pacific (NASDAQ:JAKK) last posted its quarterly earnings data on Thursday, October 26th. The company reported $0.53 earnings per share for the quarter, missing the Zacks’ 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%. The firm’s revenue for the quarter was down 13.3% compared to the same quarter last year. During the same period in the previous year, the business earned $0.82 EPS. equities research analysts forecast that JAKKS Pacific will post -0.04 EPS for the current year.
A number of hedge funds have recently modified their holdings of JAKK. Stifel Financial Corp raised its stake in JAKKS Pacific by 12.7% in the 2nd quarter. Stifel Financial Corp now owns 32,005 shares of the company’s stock worth $129,000 after acquiring an additional 3,604 shares during the last quarter. Wells Fargo & Company MN raised its stake in JAKKS Pacific by 20,020.5% in the 3rd quarter. Wells Fargo & Company MN now owns 51,911 shares of the company’s stock worth $155,000 after acquiring an additional 51,653 shares during the last quarter. Goldman Sachs Group Inc. raised its stake in JAKKS Pacific by 273.2% in the 2nd quarter. Goldman Sachs Group Inc. now owns 91,550 shares of the company’s stock worth $366,000 after acquiring an additional 67,020 shares during the last quarter. California Public Employees Retirement System raised its stake in JAKKS Pacific by 0.6% in the 2nd quarter. California Public Employees Retirement System now owns 218,868 shares of the company’s stock worth $875,000 after acquiring an additional 1,400 shares during the last quarter. Finally, Walthausen & Co. LLC raised its stake in JAKKS Pacific by 668.6% in the 3rd quarter. Walthausen & Co. LLC now owns 774,300 shares of the company’s stock worth $2,323,000 after acquiring an additional 673,560 shares during 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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