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

JAKKS Pacific (NASDAQ:JAKK) was downgraded by Zacks Investment Research from a “buy” rating to a “sell” rating in a note issued to investors on Wednesday, Zacks.com reports.

According to Zacks, “Shares of JAKKS Pacific have underperformed the industry in the past year. The trend is likely to continue in the near term on lower-than-expected results in the first quarter of 2019. A challenging industry scenario for traditional toymakers and the Toys ‘R’ Us liquidation have been affecting JAKKS Pacific’s results for quite some time. Moreover, the company faces challenges in forms of rising costs, competition from alternative modes of entertainment and age compression. However, it is banking on various partnerships and product launches to drive long-term growth. To achieve its long-term growth, JAKKS Pacific is likely to consistently bank on a solid base of evergreen properties, categories, partner brands and licenses by using promotional opportunities. Also, acquisitions, solid international footprint, focus on innovation, and collaborations with popular brands and movie franchisees should boost its top line.”

Other equities analysts have also issued reports about the stock. ValuEngine upgraded shares of JAKKS Pacific from a “sell” rating to a “hold” rating in a research report on Friday, May 10th. DA Davidson lowered their price target on shares of JAKKS Pacific to $1.50 and set a “neutral” rating on the stock in a research report on Thursday, March 14th.

Shares of JAKK stock traded up $0.16 on Wednesday, reaching $0.90. 94,536 shares of the company were exchanged, compared to its average volume of 46,259. The stock has a market capitalization of $24.04 million, a P/E ratio of -0.72 and a beta of 1.26. The company has a quick ratio of 1.27, a current ratio of 1.67 and a debt-to-equity ratio of 7.11. JAKKS Pacific has a 1 year low of $0.73 and a 1 year high of $3.33.

JAKKS Pacific (NASDAQ:JAKK) last released its earnings results on Thursday, May 9th. The company reported ($1.00) EPS for the quarter, missing analysts’ consensus estimates of ($0.56) by ($0.44). The company had revenue of $70.83 million for the quarter, compared to analysts’ expectations of $78.65 million. JAKKS Pacific had a negative return on equity of 77.24% and a negative net margin of 6.47%. On average, analysts expect that JAKKS Pacific will post -0.28 earnings per share for the current year.

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Citigroup Inc. increased its holdings in shares of JAKKS Pacific by 81.2% in the 4th quarter. Citigroup Inc. now owns 146,282 shares of the company’s stock valued at $215,000 after purchasing an additional 65,543 shares in the last quarter. Vanguard Group Inc. boosted its holdings in JAKKS Pacific by 10.9% in the third quarter. Vanguard Group Inc. now owns 989,352 shares of the company’s stock valued at $2,523,000 after acquiring an additional 97,196 shares during the last quarter. Vanguard Group Inc boosted its holdings in JAKKS Pacific by 10.9% in the third quarter. Vanguard Group Inc now owns 989,352 shares of the company’s stock valued at $2,523,000 after acquiring an additional 97,196 shares during the last quarter. Virtu Financial LLC bought a new position in shares of JAKKS Pacific during the 1st quarter valued at about $37,000. Finally, Renaissance Technologies LLC lifted its holdings in shares of JAKKS Pacific by 0.8% during the 1st quarter. Renaissance Technologies LLC now owns 2,121,230 shares of the company’s stock valued at $2,142,000 after purchasing an additional 17,030 shares in the last quarter. Hedge funds and other institutional investors own 42.10% of the company’s stock.

JAKKS Pacific Company Profile

JAKKS Pacific, Inc develops, produces, and markets consumer products worldwide. The company operates through three segments: U.S. and Canada, International, and Halloween. It offers action figures and accessories, such as licensed characters; toy vehicles and accessories; dolls and accessories, including small, large, fashion, and baby dolls based on licenses, as well as infant and pre-school products; private label products; and foot-to-floor ride-on products, inflatable environments, tents, and wagons.

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